(ONTARIO, CANADA) Ontario’s public colleges are cutting staff, closing programs, and shrinking their presence across the province after a steep drop in international student enrolment since early 2024. The fall follows federal caps on study permits and new work limits that have sharply reduced new arrivals. Twenty-three of 24 public Ontario colleges report an average 48% decline in international enrolment, triggering deep revenue losses, large budget gaps, and a wave of emergency cost-cutting that shows no sign of easing in 2025.
Union officials and campus leaders say the impact is already stark. The Ontario Public Service Employees Union (OPSEU) estimates 8,000 to nearly 10,000 job losses across the sector, affecting instructors, academic support, and administrative staff. Colleges have cancelled or suspended more than 600 programs and at least four campuses have closed or announced closures. These moves touch communities from the Greater Toronto Area to the North, where local economies rely on students’ spending and college jobs to support small businesses and public services.
Why colleges were vulnerable
The colleges’ heavy dependence on international tuition left them especially exposed to policy shifts. For years, Ontario colleges used growing international cohorts to cover the gap created by low provincial funding and a domestic tuition freeze in place since 2019.
- Several campuses—such as Loyalist College and Northern College—had international students making up 40% to 60% of full-time enrolment.
- In 2023–24, Northern College alone took in nearly $30 million from international tuition, underscoring how central these fees became to operating budgets.
This reliance concentrated financial risk: when international intake fell, institutions faced immediate and severe shortfalls.
Policy changes and shrinking cohorts
The federal government introduced a two-year cap on international student permits beginning in January 2024, citing pressure on housing, community services, and program quality. Ottawa set targets to cut international student intake by 35% in 2024 and a further 10% in 2025.
Early projections suggest an even sharper drop ahead, with a possible 70% decline in new international students in 2025 compared with government targets, according to sector estimates. The practical effects have been immediate:
- Fewer letters of acceptance issued.
- Tighter study permit allocations.
- Far smaller first-year classes for September 2024 and January 2025.
The federal details are outlined by IRCC in its official update on measures to stabilize international student growth.
Colleges report delayed start dates and reduced intakes in once-popular programs—from business and tech to health and community services. At least 13 Ontario colleges (including Loyalist, Northern, Cambrian, Conestoga, and Fanshawe) have confirmed they will admit fewer international students in 2025.
Fallout for campuses, students and communities
The drop in international enrolment has pushed many institutions to the edge—some describe it as a “financial cliff.”
- Colleges report multimillion-dollar shortfalls after years of balancing budgets with non-resident fees.
- Options without new revenue are stark: reduce staff, cancel courses, merge departments, or shutter satellite sites.
Examples and projected impacts:
– Loyalist College could see revenues fall by up to 60% between 2025 and 2030 without intervention.
– Northern College projects a 35% revenue drop under current conditions.
Daily consequences:
– International applicants face tighter selection and fewer program options.
– Domestic students see course sections disappear, longer waitlists, and reduced access to labs and instructors.
– Staff face heavier workloads as departments consolidate.
– Local economies (landlords, restaurants, transit, shops) face rising vacancies and lost customers.
Broader ripple effects include layoffs that affect families and small businesses, and program cancellations that reduce the local supply of skilled workers—early childhood educators, IT support, and other in-demand occupations.
Provincial funding context
The crisis did not begin with the federal cap alone. Key structural issues:
- Ontario allocates the lowest per-student postsecondary funding in the country—about 56% of the Canadian average for colleges.
- Inflation raised operating costs while provincial operating grants did not keep pace.
- A domestic tuition freeze since 2019 constrained another revenue source.
As a result, colleges leaned increasingly on international tuition to maintain labs, student services, and faculty positions.
Experts call provincial emergency funding temporary and insufficient to stabilize budgets given the speed of enrolment losses. One-time relief can delay—but not prevent—deeper cuts if international cohorts remain small. Ongoing uncertainty about 2025 allocations, work eligibility changes, and future study permit policy complicates long-term planning.
Sector responses and cost-saving measures
Colleges have reacted with a range of measures aimed at keeping core academic quality intact while cutting costs:
- Voluntary and involuntary layoffs, including restructuring whole divisions
- Program suspensions in areas with low enrolment or high delivery costs
- Consolidation of campuses and shared services to reduce overhead
- Tighter admissions across international markets to match federal caps
Many institutions are also trying to preserve student outcomes by:
- Maintaining partnerships with local employers
- Expanding co-op and placement options for domestic students
- Prioritizing programs that feed health care, skilled trades, and digital fields
Trade-offs remain unavoidable. Programs that once funded wraparound services (advising, language help, mental health supports) are now threatened, making it hard to keep services at past levels.
Immigration rules, market reactions, and planning challenges
Work rules influence international students’ financial decisions. When rules tighten or change, applicants often choose destinations with clearer or more flexible pathways.
- An expected 70% shortfall in 2025 compared to targets suggests students and education agents are recalibrating plans quickly.
- That recalibration leaves Ontario’s intake smaller than anticipated even under the cap system, complicating faculty scheduling, residence planning, and resource allocation.
The college sector is especially exposed because applied programs (two-year diplomas, graduate certificates, tech-intensive courses) attracted large international cohorts and higher tuition—so their loss yields an outsized budget hit. Cuts to these programs then affect services shared across campuses, impacting both domestic and international students.
What leaders propose and what students should do
Some administrators argue for a more stable provincial funding base to reduce cyclical risk. Suggested approaches include:
- Targeted operating support from the province
- Flexibility on domestic tuition policy
- Multi-year funding signals from Ottawa on permit levels
For prospective international applicants:
– Watch college admissions pages closely and verify program status before paying deposits.
– Review the latest IRCC rules at the link above.
– Plan housing early given recent pressures in many cities.
For domestic students:
– Course availability may vary by campus; consult academic advising to map alternate routes to graduation if a program is paused.
– Employers can help by supporting co-op placements, donating equipment, or providing scholarships to sustain programs.
The numbers paint a stark picture: a 48% decline in international student enrolment, mass layoffs approaching 10,000, and over 600 program cuts signal a system under strain. Without steadier funding and clearer policy horizons, Ontario risks losing training capacity just as many industries demand more skilled workers.
Colleges say they stand ready to adjust, but they cannot plan—or hire—on guesswork. The next 12 months will show whether funding and policy pieces can be realigned to keep classrooms full and communities strong.
Frequently Asked Questions
This Article in a Nutshell
Ontario’s public colleges are undergoing sharp financial strain after international student enrolment fell an average of 48% since early 2024 following federal study permit caps and new work limits. The decline produced large revenue losses, leading to program suspensions exceeding 600, four campus closures, and projected sector-wide job losses between 8,000 and 10,000. Heavy reliance on international tuition—especially where international students made up 40–60% of full-time cohorts—exposed structural weaknesses compounded by the lowest provincial per-student funding in Canada and a domestic tuition freeze since 2019. Colleges are pursuing cost-saving measures, tighter admissions, and consolidation while urging more stable provincial support and clearer federal signals. The next 12 months will be critical to stabilize budgets and protect training capacity.
