Richard SiemensThe reduction of international student permits is proving to be detrimental for post-secondary institutions (PSI). The changes, first announced in January 2024, put a cap on the number of new international student study permits the government would allocate. The regulation changes made by Marc Miller, the former federal immigration minister who oversaw Immigration, Refugee and Citizenship Canada (IRCC), has negatively impacted several PSIs in Alberta. The decline in international applications and tuition fees has been an enormous financial blow to these institutions. It is already affecting the stability and prosperity of PSIs all over Canada.
Across Canada, at least a 45 per cent decline in international student enrolment is expected. However, due to the lack of clarity from Canada over the subject, a bigger drop may occur. With annual domestic tuition increases capped at two per cent by the Alberta provincial government, international student tuition has eased the systematic issue of underfunding by providing an alternative revenue stream. But now, with new study permits being limited, the lack of government investment and support will only become more evident. As a result, some PSIs may discontinue some of its programs. The IRCC — and the Canadian government in general — should focus on providing a stable and secure financial system before putting in regulations that undercut the success of public institutions.
The federal government has allocated a reduced amount of study permits to each province. The cap varies province-to-province, but it has hit Ontario the hardest. The Centennial College in Ontario suspended 49 programs due to the decline of international enrolments. Alberta, which initially saw an increase in international student permits, is starting to feel the hurt too. Albertan PSIs may see major drops in revenue over the next few years. This may ultimately lead to the permanent closure of programs.
On March 3, Olds College announced a major suspension of programs following new immigration laws and restrictions. Among the courses halted are hospitality and tourism management, craft beverage and brewery, and agriculture technology integration. The institution has lost approximately $5.1 million worth of student tuition for the 2025–2026 academic year. This loss of revenue creates a major challenge for the already underfunded PSI.
Red Deer Polytechnic (RDP) has also reported many program cuts and internal layoffs due to the lack of international student applications received. The institution will be suspending five programs. Additionally, RDP is likely to layoff over 100 employees to compensate for the anticipated $10 million deficit for the next academic year budget.
The changes in the study permit allocation create major instability not only for PSIs but also for Alberta as a whole. Students are expected to pay more for less education, and in some cases are losing access to programs.
Moreover, the suspension of programs negatively impacts the ability to educate workers for fields in critical need. Sectors such as health care, trades, agriculture, tourism, and government services will suffer. Much of this will be a result of a lack of planning by the IRCC before implementing new regulations.
Staff are also just waiting for major cuts to occur, potentially resulting in the loss of their job and jeopardizing their financial situation. The province’s unemployment rate, which is already high, will only increase and create major uncertainty amongst Albertans about the future. Instead of fixing an issue, the new regulations on study permits have only generated a bigger problem.
While the University of Alberta has not been as affected by the cap changes as other PSIs have, it is showing signs of strain. Tuition has been steadily increasing for both domestic and international students to decrease the revenue gap. The U of A is also proposing an increase of 10 per cent increase in international tuition fees for those starting in fall 2026. This would make the overall cost for education extremely high and possibly unaffordable. As of January 1, the U of A is under a hiring freeze. The loss of income from international students could lead to the suspension of programs, as we’ve seen in other PSIs.
Overall, PSIs should receive better government funding, as they suffer from a systemic issue of underfunding. This issue should have been addressed before any laws and regulations that deeply affect the flow of tuition and students were put into place. Now, PSIs are suffering more than they already were.
