Ontario Slashes International Student Intake, Colleges Under Strain

Ontario’s post-secondary education system is facing renewed pressure after the provincial government confirmed another significant reduction in the number of international students allowed to study in the province.

For 2026, Ontario will be permitted to host a maximum of 70,074 international students, a sharp 42 per cent decline compared to the previous year. The reduction follows federal limits on study permits that were first introduced in early 2024 and have been tightened annually.

Provincial data released this week shows that 96 per cent of the available seats will be allocated to public colleges and universities, while the remaining four per cent will go to private institutions and language schools.

To manage student intake, Ontario will distribute 104,780 Provincial Attestation Letters (PALs). These letters are required for most international students as part of the study permit process, with the expectation that not all recipients will ultimately enroll.

The province emphasized that the 70,074 figure is a firm cap, meaning institutions cannot exceed the limit under any circumstances. Starting in 2026, graduate students will no longer require a PAL, though they will still count toward the overall student ceiling.

Officials also confirmed that colleges and universities will once again be allowed to return unused PALs midway through the year. The province retains the authority to reclaim allocations if necessary and says future placements will prioritize programs linked to labour shortages and high-demand sectors.

The announcement arrives at a critical moment for Ontario’s colleges and universities, many of which have relied heavily on international tuition fees to offset years of stagnant public funding. Before the federal cap, international students accounted for nearly one-third of total revenue across the sector.

The financial fallout has already been severe. Institutions across the province have laid off thousands of employees, closed campuses, and discontinued hundreds of academic programs. Sector representatives report billions in cost reductions, widespread job losses, and growing uncertainty for students and staff.

Universities are also sounding alarms, with projected deficits running into hundreds of millions of dollars this year alone. Education leaders are calling on the province to urgently revise its funding model to stabilize the system and protect access to education.

Despite repeated questions, the government has offered limited detail on when its long-awaited funding review will conclude, saying only that discussions are ongoing.

As international student numbers continue to shrink, colleges and universities warn that without swift action, the financial strain could permanently reshape Ontario’s higher education landscape.