- Conestoga College recorded a $32.8 million operating deficit as international tuition revenue collapsed by 57 percent.
- The Ontario government fired the Board of Governors following an audit that revealed serious financial mismanagement.
- A new United States rule ends duration of status for F-1 students, replacing it with fixed-period admissions.
Conestoga College reported a $32.8 million operating deficit for the fiscal year ended March 31, 2026, reversing a $121 million surplus recorded the previous year as international enrollment and tuition revenue collapsed.
The Ontario college’s tuition revenue fell 57%, from $564 million in 2025 to $241 million in 2026. Foreign tuition crashes left a multi-million-dollar gap in the institution’s operating budget.
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International student enrollment has dropped 77% from 2023 levels. The decline has also hit administrative and support workers, with the college initiating rounds of layoffs.
The province responded after an audit found “serious financial and governance mismanagement.” It fired the Board of Governors and appointed Linda Franklin as administrator to oversee operations.
The financial reversal has also drawn attention to the departure of former President John Tibbits. He received a $3 million payout when he left in January 2026, as the college moved deeper into financial decline and began cutting staff.
International enrollment turned a surplus into a deficit
The college’s figures show how quickly its finances changed:
| Measure | Previous figure | 2026 figure or change |
|---|---|---|
| Operating result | $121 million surplus | $32.8 million deficit |
| Tuition revenue | $564 million in 2025 | $241 million in 2026 |
| Tuition change | 57% decline | |
| International enrollment | 2023 level | 77% decline |
The drop in foreign students has reached beyond the campus. Local reports describe disappearing jobs in retail and local services that support the student population.
The college’s financial problems unfolded as Canada and the United States moved toward tighter immigration policies affecting international students. The United States recorded a 17% drop in new international enrollments in late 2025/early 2026 amid those policy shifts.
U.S. rule replaces duration-of-status admissions
The U.S. Department of Homeland Security published a final rule July 17, 2026, titled “Establishing a Fixed Time Period of Admission and an Extension of Stay Procedure for Nonimmigrant Academic Students.” The rule ends the decades-old Duration of Status, or D/S, policy for F-1 students.
The Federal Register rule says F-1 students will receive admission for a fixed period, typically four years, rather than for the length of their academic program. Students who need additional time must file a formal Extension of Stay request with U.S. Citizenship and Immigration Services.
The policy also restricts undergraduate students from changing majors or transferring schools during their first year unless they face “extenuating circumstances.” The post-graduation grace period has been reduced from 60 days to 30 days.
DHS Secretary Markwayne Mullin defended the change July 23, 2026, saying:
“For decades, foreign students have been admitted into the US indefinitely, allowing thousands to abuse our immigration system by perpetually enrolling in courses to avoid having to leave. This new rule balances legitimate education opportunities with stronger immigration enforcement through periodic review of students' eligibility.”
The Study in the States guidance outlines the fixed-period system and the extension process. U.S. agencies do not typically comment on individual Canadian colleges, but the rule addresses the same dependence on international education that has exposed Conestoga’s budget to a sudden enrollment shock.
Layoffs and oversight follow the revenue collapse
The college has started cutting administrative and support positions as it responds to the deficit. The loss of international students has also reduced demand for nearby businesses and services.
Franklin’s appointment places day-to-day oversight under an administrator after the provincial government removed the governors. The intervention followed an audit focused on the college’s finances and governance.
The changes leave the institution confronting both an immediate budget shortfall and a weaker international enrollment base. The U.S. policy, meanwhile, adds extension filings and tighter transfer rules for students who need more time or want to change academic direction.
The new U.S. admission framework took effect amid the broader enrollment decline in late 2025/early 2026. Conestoga’s fiscal year ended March 31, 2026, giving the college’s next reporting cycle a test of whether cost cuts can keep pace with the loss of tuition revenue.
