While Algoma University remains tight-lipped about how international student caps could impact its bottom line, an industry expert says the caps are creating “a whole new level of crisis” for the country’s post-secondary institutions.
On top of the federal government’s previously announced caps on international student study permits, Ontario Liberal Leader Bonnie Crombie’s plans to reduce international students to 10 per cent of the student population in Ontario’s post-secondary schools – a move that would be a massive hit to one of their primary means of shoring up their bottom lines.
Ken Steele, president and chief futurist at Eduvation Inc., compiled data estimating that roughly 6,000 of Algoma University’s 7,000 students were international students in 2023.
“From a revenue perspective, they're massively important for the budget,” Steele told SooToday.
“I’d say Bonnie Crombie doesn't really have a completely fleshed out platform if she's not explaining how she's going to prevent the institutions from collapsing.”
Crombie also announced she would continue a tuition freeze put in place by Doug Ford’s government during its first term, and promised to “fairly” fund colleges and universities if elected.
“Unless she's got some magic way of raising tax dollars, it sounds about as farfetched as Doug Ford's tunnel under the 401,” Steele said.
Steele said Algoma may fare better than other post-secondary institutions, given previous private partnerships.
He has compiled data showing hundreds of layoffs, early retirements, and eliminated positions at post-secondary institutions around the province since last fall.
When asked about international student caps – both the ones imposed at the federal level, and Crombie’s proposed restrictions – Algoma University declined to provide substantive comments about the ongoing and potential impacts.
“For the 2023-24 academic year, Algoma University had a total full-time equivalent enrolment of 8,745 students across its three campuses,” said a statement sent to SooToday. “Domestic enrolment grew by 7.4 per cent, while international enrolment declined, following broader sector trends and federal government restrictions on international study permits.”
“As a broader public sector institution, Algoma University does not comment on any election platform.”
Steele said the caps on international students have exacerbated decades of underfunding from the government, which post-secondary institutions shored up by bringing in international students – who pay far higher tuition fees than their domestic counterparts.
“In Ontario, the university and colleges are the lowest funded in the country,” Steele said.
“They've been progressively underfunded for decades, and the international students allowed them to make up for a gap in government funding.
“They've created a crisis, really, because that has taken away money that was making up for shortages in government funding.”