Colleges across Canada are slashing programs, laying off staff, and scrambling to rebalance their budgets as the impact of new federal immigration policies begins to take hold. The cap on international study permits and tighter restrictions on post-graduate work eligibility—announced earlier this year—have led to an abrupt decline in international student enrolment, a key revenue source for many institutions.
In Prince Edward Island, Holland College is suspending eight programs and expects international enrolment to drop from nearly 800 in 2024 to just 140 by 2026, leading to a $7 million annual revenue loss. In Ontario, colleges like Algonquin, Mohawk, Seneca, and George Brown have announced dozens of program cuts, including popular business and creative arts diplomas, as they face tens of millions in projected deficits.
The situation is especially dire in Ontario, where provincial funding ranks last in Canada and domestic tuition has been frozen since 2019. For years, colleges have relied on international students to make up the difference, but with those numbers now capped, many programs are no longer financially viable.
While these policy changes aim to bring greater oversight and balance to the system, they’ve also exposed deep vulnerabilities—especially at smaller or rural colleges. Leaders in the sector warn that the current path may reduce educational access, hurt local economies, and undermine Canada's competitiveness as a destination for global talent.
As pressure builds from provinces and post-secondary institutions, one key question remains: could the federal government reconsider its restrictions if the fallout proves too damaging to the college system and the communities they serve?
