The federal government’s rationale behind this decision is to encourage provincial governments to reassess their reliance on international student tuition fees.
The federal government’s rationale behind this decision is to encourage provincial governments to reassess their reliance on international student tuition fees.
Sault College – a higher education institution based in Ontario – is grappling with the implications of a new federal policy that caps international student admissions. Announced by Immigration Minister Marc Miller, the policy will come into effect in the 2024-25 academic year, marking a significant shift in the enrollment landscape for Canadian post-secondary institutions.
The cap involves a 35 percent overall reduction in new study visas. Specifically for Ontario, it establishes a threshold of 50 percent or more, significantly impacting the student composition and financial stability of colleges and universities in the province.
The federal government’s rationale behind this decision is to encourage provincial governments to reassess their reliance on international student tuition fees. These fees are notably higher than those charged to domestic students and have become a crucial revenue stream for educational institutions.
Sault College, which currently enrolls approximately 2,300 students, of which around 1,000 are international, voiced its concerns through a press release. The college described the policy change as “reckless” and anticipates considerable financial strain.
Financial implications
David Orazietti, President of Sault College, highlighted the specific impact on their partner campus, TriOS College in Toronto. The policy change means that students at TriOS College will no longer be eligible for a post-graduate work permit. This eligibility is a significant draw for international students, and its absence could redirect potential enrollments to other institutions.
“The real impact is on international students attending our partner campus. We stand to lose a significant stream of revenue.
“Students that come to the campus at Sault College will continue to be eligible for a post-graduate work permit but students that study at our partner campus are no longer eligible for a post-graduate work permit, and because of that, students would be likely to choose to enroll elsewhere,” Orazietti said.
Orazietti emphasized the severe financial repercussions for Sault College, as the partnership with TriOS College contributes about one-third of its revenue, equating to roughly $41.67 million of its $125 million budget.
“They would no longer choose our partner and the financial implication to the college is substantial because our partner campus generates about one-third of all the revenue for our college.
“The revenue that is provided through our public-private partnership (with TriOS College) is equivalent to approximately one-third of our budget of $125 million,” Orazietti said.
The new cap is perceived to disproportionately affect smaller, northern, and rural colleges, which might not have the same pull as larger urban institutions. Sault College, like many others, faces the dual challenge of a changing policy landscape and ongoing financial constraints.
According to Orazietti, “We are very concerned about the financial implications for Sault College but we will be doing everything that we can to advocate for Sault College with the provincial government and the federal government in particular.”
Challenges, response
Compounding the issue, Ontario’s post-secondary institutions have been grappling with financial challenges since the Progressive Conservative government’s 2019 decision to cut tuition by 10 percent and eliminate the previous Liberal government’s free tuition program for low- and middle-income students. This shift led to increased reliance on international student fees.
A report by an Ontario Blue-Ribbon Panel in November 2023 urged the Ford government to lift the post-secondary tuition freeze and increase funding per student. The panel’s recommendations aimed at easing the financial burden on colleges and universities, a need that Orazietti believes has become even more critical in light of the recent federal announcement.
“The recommendations that were made in the Blue-Ribbon Panel absolutely need to be implemented, and I would say based on the decision today, the investments that are recommended by the Blue-Ribbon Panel don’t go far enough. They need to go further. All of the colleges are advocating for greater investment in the post-secondary sector in Ontario,” Orazietti said.
In response to these challenges, Orazietti plans to engage with local and federal government officials, including Mayor, City Council, MPP Ross Romano, and MP Terry Sheehan. His advocacy efforts will focus on underscoring the importance of investing in Sault College and the broader post-secondary sector in Ontario.
The college’s ability to undertake new projects, such as constructing a new residence building, might also be hindered by the anticipated drop in revenue following the cap on international students. However, Orazietti remains optimistic about finding solutions and continuing to invest in the college’s infrastructure and student support systems.
This development at Sault College exemplifies the broader challenges faced by Canadian post-secondary institutions in balancing financial sustainability with changing government policies. As colleges and universities navigate these complexities, the potential impacts on international student communities, local economies, and the quality of education offered remain pivotal considerations.
