Thursday, December 25, 2025
Brock's Only Independent Student Newspaper
One of the only worker-managed newspapers in Canada

Degrees of dependence: the cost of capping international students   

|
|

The federal government’s decision to reduce the number of international students accepted into Canadian universities has upended 2025 budgets across the nation. Institutions are reporting hiring freezes, cancelled courses and ominous deficits.  

In January 2024, Ottawa announced a 35 per cent reduction in new international study permits, citing housing pressures and concerns about fraudulent enrolments. The following year, the cap was set at 437,000 permits, a further 10 per cent cut from 2024. 

Ontario then introduced its own restrictions, limiting the approval of new programs and capping international enrolment at colleges and universities. 

The combined effect of these measures has meant a sharp decline in enrolments, as reported by CBC. Between January and June of this year, only 36,400 new permits were issued. In 2024, between the same six-month period, 125,034 permits were issued, representing a drop of approximately 70 per cent.  

The national picture reveals the severity of the financial disruption. Ontario universities collectively reported over $550 million cuts in spending in recent years, with administrators directly linking these reductions to the decline of international tuition revenue.  

The pressure has not been limited to Ontario.  

Across the country, universities have frozen hiring, laid off staff and scaled back programming. The Times Colonist reported that institutions were announcing “across-the-board cuts” in direct response to the federal cap. 

These institutional impacts will likely translate into consequences for domestic students, with strong suggestions that course choices will shrink, class sizes will grow, student services such as labs or tutoring may face reductions, there could be longer wait times for student counselling and domestic tuition fees could rise rapidly.  

To focus inwards, in March, Brock University said it was facing “significant financial challenges, the result of diminished public investment, abrupt changes in government policy and external economic pressures.” Brock projected a $39 million shortfall for the 2025-26 fiscal year, an amount that represents a serious structural gap for a medium-sized institution. 

To contain costs, Brock has implemented reductions for the 2025-26 academic year. Hiring freezes have been implemented across campus; the Faculty of Education cut 180 course sections; and the Faculty of Humanities withdrew seminars for upper-level courses.  

These changes are explicitly detailed in the university’s 2025-26 budget planning

The impact of these measures on domestic students is harder to depict. It can be inferred that fewer course sections, fewer seminars and cancelled offerings will restrict options and potentially increase class sizes. Yet, Brock has not released data showing that domestic students are unable to access required courses as a direct result of these changes.  

Tuition also remains frozen under provincial law, meaning that the financial burden has not yet been shifted directly onto domestic students. Nevertheless, administrators warn that if the freeze is lifted, tuition hikes may be necessary to stabilize the budget. 

These policy changes have had — and will continue to have — an impact on Canadian institutions, due to Canada’s increased reliance on international students over the past decade. 

Statistics Canada shows data comparing international student enrollment between the fiscal years 2013-14 and 2022-23 has nearly quadrupled, from 199,119 to 468,090. 

Faced with domestic tuition freezes and stagnant provincial funding, universities sought new revenue streams: international students — who in the 2022-23 academic year paid on average five times more than domestic students — became a central source of income. 

This model only works if international enrolments continue to rise. So, with Ottawa placing caps on study permits, the revenue base universities have come to depend upon have contracted.  

It is important to note that the crisis facing Canadian universities cannot be explained by international student policy changes alone, as there are layers to “understanding what’s going on with post-secondary funding.” 

As previously mentioned, Brock acknowledges that “diminished public investment” and “external economic pressures” have also contributed significantly to the financial challenges.  

Ontario provides the lowest level of per-student funding in the country, with tuition frozen since 2019 and inflation eroding institutional revenues year after year — rising wages, higher utility costs and increased borrowing rates — the financial problem in Ontario institutions is further compounded by the policies implemented in Ottawa. 

Financial losses, hiring freezes and cancelled courses across Canadian universities suggest that domestic students will eventually feel the effects in their own classrooms, through fewer course options, larger class sizes, reduced services and/or higher tuition. 

As academic institutions lobby governments for relief, policymakers must balance the original objective of easing pressure on housing and services with the unintended destabilization of higher education funding.  

For now, the burden rests primarily upon the institutions, but if the current trends continue, the consequences may soon be felt by domestic students as well. 

More by this author

RELATED ARTICLES

Bill 33: what students should know 

Ontario’s Bill 33, Supporting Children and Students Act, 2025, received Royal Assent on Nov. 20, creating a set of postsecondary law changes that will take effect only if and when the government proclaims Schedule 3. The schedule would require publicly assisted universities and colleges to publish admission criteria and access applicants on merit, authorize new regulations on admissions and student fees and require institutions to develop research security plans subject to ministerial directives. 

Aubrey Reeves presents findings on Canada’s Arts and Culture Sector 

On Dec. 1, the FirstOntario Performing Arts Centre (PAC) hosted local arts leaders, policy advocates and community members for a presentation on new national research, highlighting the economic and social contributions of Canada’s arts and culture sector.

2025 Ontario environment policies: the battle between competitiveness and accountability 

The Canadian federal and Ontario provincial governments’ 2025 policy decisions were focused on affordability and competitiveness-focused responses to trade pressure and rising electricity demands. The influence of this on Ontario’s climate can be seen in all of the climate adjacent policy decisions made regarding energy, infrastructure, land-use and fiscal decisions that either increased the pace of low-carbon buildout or weakened environmental guardrails and climate accountability, depending on the file.

What’s happening with Canada’s latest pipeline proposal? 

The Canadian Federal Government is moving in lockstep with Alberta’s Provincial Government towards establishing a new bitumen pipeline through to British Columbia’s northern coast despite objections. 

Here’s what the Auditor General’s report reveals about Ontario’s healthcare  

The Auditor General of Ontario, Shelley Spence, provided a news release on a newly tabled report that audits performance in healthcare related areas across the province. The news release highlights physician billing, medical schools and access to healthcare with the procurement of personal protective equipment also making headlines separately.  

Kick off the semester with Frost Week and more 

Before the winter term kicks into high gear, BUSU aims to make sure that you still get your fill of Brock fun — meeting new people, reconnecting with friends and getting some much-needed social time through Frost Week.

Toronto’s Union Station using facial recognition for targeted advertising 

Reports of Toronto’s Union Station implementing the use of facial recognition software to better target advertising made media waves a few weeks ago. Here’s what students who may be using the station during this upcoming break should know.  

Alberta’s alarming dependence on the notwithstanding clause 

On Nov. 18, Alberta invoked the notwithstanding clause for the second time in under a month — a retaliatory move in the face of pushback from the judiciary that threatens the rights of trans youth and young women across the province.