It is believed that these companies enjoy significant financial gains without shouldering the responsibilities associated with supporting essential services like housing, social services, infrastructure, and transportation.
It is believed that these companies enjoy significant financial gains without shouldering the responsibilities associated with supporting essential services like housing, social services, infrastructure, and transportation.
Around 70 percent of international student placements in Ontario are orchestrated by overseas or non-local recruitment companies, who earn lucrative commissions ranging between 15 to 20 percent of international student tuition fees, according to a report.
Earl Blaney, an immigration consultant and founder of the edTech platform Study2Stay, said these companies enjoy significant financial gains without shouldering the responsibilities associated with supporting essential services like housing, social services, infrastructure, and transportation.
As a solution, Blaney proposed the implementation of a municipal tax on remittances to these recruitment companies from post-secondary institutions.
“Imposing a municipal tax on post-secondary remittances to these companies would be an appropriate way of ensuring communities can upgrade public services and help provide the support and experiences international students deserve,” he said in a LinkedIn post.
“Think of the ‘tourism tax’ in Niagara Falls – the difference being this is not imposed on the students themselves, rather it is imposed on the corporate entities that are profiteering,” he added.
Moreover, information requested and obtained from Freedom of Information Act releases indicated a lack of consultation between many post-secondary institutions and most municipalities regarding growth strategy and the potential impact on local communities.
This raises concerns about the oversight of the substantial increase in international student enrollments observed from 2021 to 2023.
Figures from the Auditor General of Ontario’s audit in December 2021 add depth to the conversation, revealing significant commissions paid by public colleges to international recruitment agencies. This reflects the surge in international student enrollments from 2021 to 2023. Specifically, commissions amounted to $67,542 in 2016-2017, $109,629 in 2017-2018, and further increased to $139,176 in 2018-2019, with a total of $157,111 in 2019-2020. However, there was a slight decrease in commissions for the 2020-2021 period, totaling $114,664.
While these numbers may have increased at some colleges since then, the audit highlights the urgency of addressing the consequences of this upward trend.
Temporary cap on study visas
The IRCC has imposed a temporary cap on study visas, affecting about 360,000 permits – a 35 percent reduction from the previous year. This measure aims to curb unsustainable growth in provinces with a substantial increase in international students.
The cap is effective nationwide and at the provincial or territorial levels, with exemptions for current permit holders, renewals, and those pursuing master’s and doctoral degrees. Starting Jan. 22, study permit applications require an attestation letter from a province or territory by March 31. IRCC plans to review the cap in 2025.
Meanwhile, changes to the Post Graduation Work Permit (PGWP) eligibility criteria will begin in September. Programs under curriculum licensing arrangements in private colleges will no longer qualify. However, graduates from master’s programs or short graduate-level programs will be eligible for a three-year work permit.
Recent changes are expected to significantly affect Ontario and British Columbia, according to Doug Ronson, a senior consultant in international education.
Currently, Ontario, home to about 38 percent of Canada’s population, hosts 51 percent of international students.
Ronson noted the potential challenges in Ontario due to a mismatch between study permits and the high student population. In contrast, other provinces may not see notable changes based on their population-to-student ratio.
A 2023 report from Higher Education Consulting Associates noted rising foreign student enrollments in Ontario amid a 15 percent decline in budgeted transfers over five years.
Ronson suggested that Ontario’s increase in international students is partly due to a 10 percent reduction in tuition rates for domestic students in 2019.
Canada surpasses one million int’l students
As of December last year, Canada has officially surpassed the one-million mark in its international student population, reaching a total of 1,028,850.
Among the provinces, Ontario leads with the highest concentration of international students, boasting a population of 526,015. Following closely are British Columbia with 202,565 students and Quebec with 117,925 students. These provinces also host the majority of Designated Learning Institutions (DLIs).
Immigration Minister Marc Miller attributed the surge to the permissive DLI model in specific provinces. He cited the need for collaboration between provincial governments and DLIs to effectively address the escalating numbers.
In 2022, Canada hosted a total of 807,260 international students. By September 2023, the number of students holding valid Canadian study permits exceeded expectations, reaching a notable 1,015,744.
The rapid growth in international student numbers has raised concerns, sparking discussions about the possibility of implementing a cap on study permits for international students.
