Nearly two years after a major policy reversal on international students, Canadian colleges are facing a crisis. The federal government's move to cut and cap new study permits, restrict work eligibility, and limit pathways to permanent residence has led to a rapid decline in international enrolment and widespread financial fallout.

Saskatchewan Polytechnic president Larry Rosia revealed a staggering 40% drop in international student numbers — from 4,300 down to approximately 2,600. This decline has led to a $15 million budget shortfall, 87 staff layoffs, and the cancellation of 17 education programs. “Canada’s position as a global leader is rapidly diminishing,” Rosia warned, citing anti-immigration sentiments and global competition.

Nationwide Impact

The crisis is not isolated. Across Canada, the $38.6 billion international education sector has seen similar disruptions. In Ontario, public colleges have faced 10,000+ layoffs and 600+ program cancellations, according to the Ontario Public Service Employees Union. Many schools are unable to fill even the reduced quotas allocated by the federal government due to higher visa refusal rates and slower processing.

Narrative Shift and Reputation at Stake

The situation has been worsened by negative public and political rhetoric. Former immigration minister Marc Miller drew attention to “diploma mills” and exploitation cases, further damaging Canada’s appeal. In response, the Canadian Bureau for International Education (CBIE) is launching a digital campaign to counter misinformation and restore global trust in the Canadian education brand.

“Canada has always stood for openness and quality,” said Larissa Bezo, CBIE president. “We need to reinforce that message to the world.”

Regional Outcomes: Mixed Signals

While provinces like Alberta have been allocated more spots for growth, institutions are still impacted by the overall negative sentiment. The University of Alberta maintained stable enrolment but expressed concerns about future recruitment.

Niagara College, on the other hand, saw its international applications drop by 50%, losing 40% of its student body from abroad. “We’re still a safe, inclusive, and high-quality destination,” said president Sean Kennedy, emphasizing the need for a balanced message to international applicants.

With over 800,000 international students currently in Canada, down from 1 million in 2023, and a sharply declining rate of new arrivals (down 132,505 this year), experts warn of long-term effects. With no updated national international education strategy since 2024, industry leaders emphasize the urgency for federal support and a coherent vision to reclaim Canada’s global standing.