Capping International Students and Freezing Fees is Creating a Post-Secondary Crisis in Ontario and Canada

Jason Setnyk—Op/Ed
Capping International Students and Freezing Fees is Creating a Post-Secondary Crisis in Ontario and Canada

Ontario and Canada’s post-secondary institutions are in crisis. Federal caps on international student enrolment and Ontario’s tuition freeze have created significant financial strain, forcing universities and colleges to reduce services, cut programs, and lay off staff. Schools like Queen’s, Carleton, and Brock face escalating deficits, while others, such as Nipissing and Laurentian, have been battling financial challenges for some years. Even once-stable institutions are tightening their belts, and community staples like Algonquin College’s Perth campus are closing, leaving fewer educational and economic opportunities in rural areas.

The federal cap limiting international student permits to 35% is a response to Canada’s housing crisis but has disrupted a vital revenue stream for post-secondary institutions. International students, who pay substantially higher tuition fees than domestic students, have long offset stagnant provincial funding. Ontario’s tuition freeze, introduced in 2019 to improve affordability, has compounded the issue by restricting schools’ ability to increase revenues. It has created a perfect storm.

These pressures impact students, staff, and communities alike. Reduced international enrolment diminishes cultural diversity and global perspectives, key elements of a robust academic experience. Domestic students face cuts to programs and services, while faculty and staff contend with hiring freezes, layoffs, and heavier workloads, jeopardizing education and research quality. Beyond campuses, entire communities experience ripple effects when post-secondary institutions reduce their operations or, in the worst cases, close entirely.

While Ontario announced a $1.3 billion investment to stabilize post-secondary institutions in early 2024, this funding only partially addresses years of stagnant operating grants. According to the Blue-Ribbon Panel on Financial Sustainability, operating grants had declined by 31% before this announcement, leaving institutions playing catch-up rather than moving forward.

To secure the future of higher education, governments must prioritize sustainable funding. Decades of federal restructuring, from the 1996 consolidation of post-secondary funding into the Canada Health and Social Transfer to its eventual division into the Canada Health Transfer and Canada Social Transfer, have reduced transparency and accountability. Dedicated funding for post-secondary education, such as a Post-Secondary Education Transfer, could stabilize the sector.

Provincially, Ontario’s tuition freeze should transition to a model allowing modest, capped increases tied to performance metrics like student outcomes and research excellence. Institutions must also expand partnerships, develop micro-credential programs, and grow continuing education aligned with workforce needs. Some institutions are ahead of the curve in this regard. Addressing the root causes behind the international student cap, including housing shortages, is critical. Governments should work with institutions to build more affordable student housing, alleviating pressure on local markets and enabling a gradual lift of enrolment restrictions. Additionally, increasing student housing could help schools generate additional critical revenue.

Canada’s higher education system has long been a point of national pride, attracting global talent and equipping students for future success. However, without decisive action, the current trajectory risks eroding this legacy. Policymakers, institutions, and communities must work together to ensure post-secondary education remains accessible, sustainable, and relevant for future generations.

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