Post-secondary schools under financial pressure from federal cap on international students

College struggles with fewer foreign students Post-secondary institutions that rely on tuition from foreign students are struggling with a federal cap on foreign admissions.

Post-secondary institutions across Canada are feeling the pinch from the federal government’s decreased cap on permits for international students.

That includes Camosun College in Saanich, B.C., which has 400 fewer international students than were originally budgeted for prior to the government’s intervention.

The college is now staring down a $5 million deficit for the 2025-26 school year.

Lynelle Yutani, president of the Camosun College Faculty Association, said the union has been told layoffs are coming, but is still waiting on specifics.

"I think it's time for our province to advocate for some transitional support funding,” said Yutani.

In a statement to CTV News, Camosun College confirmed it has been “forced to make the difficult decision of eliminating vacant positions,” and will be imposing layoffs “across all employee groups” to address its deficit.

The college also said it was disappointed with a lack of consultation by the federal government on its permit cap.

For its part, the CCFA said it wasn’t consulted by the college on the upcoming cuts either, and wants to ensure the job losses stay out of the classrooms.

"Administrative salaries and administrative spending has increased at the college faster than in any other area,” said Yutani.

Outside of the classroom, many workers at the college fall under the CUPE banner.

In a statement to CTV News, CUPE 2081 said the current funding structure has “forced colleges and universities to overly rely on international student tuition to support core operations,” and that “careening from emergency budget to emergency budget is unsustainable."

Tony Elder, associate vice-president of academic resource planning for the University of Victoria, said that school has had to make “some difficult financial decisions” as well, undergoing two budget cuts over the past three years, with some job losses.

UVic’s international student population has dropped by nearly 1,000 students from a decade ago, which has translated into a significant financial hit. While a Canadian student spends roughly $6,000 per year for tuition, international students pay around $30,000 per year.

"For a four-year undergraduate degree program, that's a significant investment,” said Eder.

Vancouver Island University told CTV News it saw a 16-per-cent decrease in international student enrolment between 2023 and 2024, and that the shift aligns with broader trends affecting post-secondary institutions across Canada. That reduction has led VIU to reassess its budgets and operations plans.

As fewer international students come into the country, more post-secondary institutions will need to make some tough decisions to cover future budget deficits, which could include more job losses.