International Student Caps Push Ontario Colleges to Cut Programs Amid Growing Uncertainty

Post-secondary institutions across northeastern Ontario are making tough decisions as the effects of new federal immigration rules ripple through the region. A steep decline in international student enrolment has led several colleges and universities to suspend programs, reduce staffing, and revise operating budgets. The changes are triggering financial instability in a sector that has long relied on international tuition to keep programs running.

Institutions like Algoma University, Cambrian College, Northern College, and Sault College have all announced major cutbacks. The federal cap on study permits and restrictions on post-graduation work rights are at the heart of this disruption.

Algoma University Sees 50% Enrolment Drop

At the forefront is Algoma University in Sault Ste. Marie, the administration has paused admissions to five programs for the upcoming academic year. The reason? A projected 50% drop in total enrolment, translating into a revenue fall from $264.6 million to just $123.5 million.

What changed?

• Canada’s federal policy eliminated business graduate certificates from post-grad work permit eligibility.
• Study permit allocations were halved after university budgets were already set.
• The sudden rule change blindsided administrators and created budget shortfalls overnight.

Interim President Donna Rogers warned that if the university doesn’t adapt fast, “the entire university is in jeopardy.” Despite the crisis, layoffs have so far been avoided, though sessional teaching contracts and summer courses have seen steep cuts.

Cambrian and Northern College Brace for Further Declines

At Cambrian College in Sudbury, a $40 million loss in revenue led to the elimination of 22 positions and the suspension of 10 programs. Most of the discontinued courses had once attracted strong international enrolment. But with work permits off the table, interest quickly faded.

Professor Neil Shyminsky, head of OPSEU Local 655, says uncertainty is the new norm.

“We’re seeing policy changes every few months. No one can predict what next year will look like,” he explained.

Meanwhile, Northern College is managing a growing deficit—$6 million this year, with projections hitting $12 million next year. Early retirements have reduced the full-time faculty count to 70, the lowest in over two decades.

Here’s how some colleges are adapting:

What’s Fueling This Crisis?

The dramatic downturn is largely due to changes introduced by the federal government:

• Capped study permit approvals for new international students
• Stricter eligibility for post-grad work permits
• No increase in domestic tuition fees, adding further strain

For years, international tuition helped cover the shortfall in government funding and frozen domestic fees. With that stream shrinking, colleges are left scrambling.

Sault College President David Orazietti says “everything is on the table” for the next budget, but remains hopeful that lobbying efforts will bring a review of Ontario’s post-secondary funding model.

What Lies Ahead for International Students?

Canada’s status as a top study destination is now in question. Students weigh the high cost of studying abroad against their chances of staying and working after graduation. With limited work rights and uncertainty around permits, Canada may no longer be the first choice for many.

Despite $750 million in new federal investments for science and technology seats over five years, many educators feel that without stable international student numbers, their institutions remain at risk.

“We’ve hit a tipping point,” one administrator noted. “We need long-term solutions, not stop-gap funding.”

International Student Policy Needs Clarity

Ontario’s northern colleges are facing a perfect storm—tightened immigration rules, tuition caps, and shrinking enrolment. If Canada wants to remain a global leader in education, policymakers must rethink how international students are welcomed and supported.

Colleges have been clear: the funding model must evolve. Until then, program suspensions and staffing reductions may only be the beginning. The future of the international student pipeline depends on clear, consistent, and forward-looking policies.

Add Canada Immigration News to Your Google News Feed