Analyzing the Impact of Private Colleges on Canada's Influx of International Students

Canada is one of the most attractive countries for international students due to its quality of education, variety of campuses, and friendly atmosphere. Canadian Universities & Colleges have seen a dramatic surge in international students in recent years. This influx has presented both opportunities and challenges to Canada’s education system and society. However, recent criticism of private colleges as the cause of this surge misses out on many factors that contribute to this trend. Canada’s open policies, such as the Post-Graduation Work Permit Program (PGWPP,) have made it an ideal choice for international students looking for not only education but also career prospects.
However, recent studies have shown that this increase in international student numbers is alarming especially at private universities. Some critics argue that private universities, which tend to have shorter programs and more streamlined admission processes, are contributing to this rise in quality education.
A number of colleges and universities have been at the forefront of Canada’s rapid expansion in international student numbers, and they stand to suffer the most from the new cap on student permits.  To know more about the changes, you can read our news on Canada's recent changes and their effects after the implementation of the Canada student visa cap.

According to CBC’s data, what has been portrayed as a nationwide surge in international student numbers prompting Ottawa to impose a two-year cap is, in fact, concentrated in just a few schools, the vast majority of which are public institutions, mostly in Ontario.

• All but one of Canada’s 30 colleges and universities that issued the highest number of international study permits in 2022 were public. 
• Only 10 Ontario public colleges accounted for nearly 30% of all study permits granted across the country over the past three years.
• 12 Ontario public colleges have increased their annual permit numbers by at least three times since 2018.

The data contradicts claims made by federal and provincial politicians who blame the surge in international students among private colleges.

List of Colleges/Universities with the Highest Number of Study Permit Applications Approved by Immigration, Refugees, and Citizenship Canada (IRCC) in 2023

The data also supports Canada’s rapid increase in foreign student enrollment.  Governments of all political stripes were actively courting international students. To build up the skilled labor force and to bring in large amounts of money to underfunded schools and universities, regardless of the resulting housing demand.
"It's a cash cow," said Richard Kurland, an immigration lawyer and policy analyst in Vancouver. "Each student likely generates at least $20,000 for an educational institution, and we're talking about thousands and thousands of students." Here are some of the factors that are driving the phenomenon of private colleges to be blamed for the rise of international students.

Foreign Students' Economic Impact Thrives Amid Austerity Measures

According to research data, the number of study permits issued to students attending some of Canada’s 1300 colleges and universities totaled over 1.5 million during the six-year study period. This means that international students paid tens of billions into Canada’s post-secondary system during a period when provincial governments were cutting back on funding for public universities and colleges.
In Ontario, the numbers show that foreign student enrollment has skyrocketed since Premier of Ontario  Doug Ford came to power in 2018. In 2019, his government cut postsecondary funding, slashed domestic tuition by 10%, and launched a program specifically designed to lure international students and their terrible tuition fees to Ontario's public colleges. In 2023, Ontario's public colleges accounted for over 40% of the 4,35,000 study permits granted to colleges and universities across the country.
The growth in Ontario study permits in recent years has been "explosive and reckless," said Earl Blaney, an immigration consultant and advocate for international students in London, Ontario.

International Students Preference- Public or Private?

The surge in international students combined with the increased demand for housing, especially in southern Ontario and the British Columbia Lower Mainland, led the federal government to set a two-year limit on study permit applications. Since then, both Canada’s immigration minister and the premier of Ontario have sought to deflect blame from private colleges to public universities, despite the fact that data shows public universities have consistently been the top choices for international students. Immigration Minister Marc Miller stated in January 2024 that some private colleges in Canada are the "equivalent of puppy mills that are just churning out diplomas.”
Miller further added, "Some of the really, really bad actors are in the private sphere, and those need to be shut down, but there is responsibility across the board," he told reporters on Parliament Hill. "We just need the provinces in question, in this case Ontario, to assume their responsibility."

Change in Rule by Provincial and Federal Government

Observers attribute Canada’s surge in international students to provincial and federal policies. In the 2010s, federal immigration regulations were altered to provide foreign students with three-year work authorization to study at any post-secondary institution in Canada, as well as an easier path to citizenship. Below are some recent changes made by the Canadian government. 

• 20-hour Work Cap Raises Major Concerns for International Students in Canada
• Canada’s Bold Move on International Student Cap Sparks Trouble
• Canada Announces 2-Year Cap On International Students
• Measures Taken By IRCC To Verify Letter of Acceptance For International Students
• Evaluation of PGWP Eligibility in Public-Private College Partnerships

"It was foreseeable that the volume of students coming to pursue permanent residency in Canada — with education being just incidental — would skyrocket," said Blaney. The government's failure to act during that time was not predictable, even though they knew it was happening. When the cap was announced, the immigration minister said it would cut the total number of permits issued across the country by 35%. Still, provinces that imported disproportionately high numbers of international students would be hit harder.

Drop in Revenue Due to Drop in Study Permits

Ontario is expecting a 50% drop in study permits by the end of 2024. This means about 100,000 international students will not be to get permission to study in Ontario this year compared to 2023. With college programs costing an average of $15,500 annually and university degrees costing more than $20,000 annually, conservative calculations suggest Ontario could lose upwards of $1,500 million in revenue. The province has yet to spell out how it will distribute study permits among Ontario’s colleges and universities and how it will compensate for the projected revenue loss. The Ford government announced that it would increase postsecondary funding by $1.3 billion over the next three years. The falls were well short of the $2.5 billion boost recommended by the government’s panel before international study permits capping.
Ontario's Minister of Colleges and Universities, Jill Dunlop,  said, “This is going to have an impact on the economy not just here in Ontario but across Canada." She further said, "We recognise the disruption that the international student's announcement has made.
"Communities across the country are experiencing a similar need for skilled full-time workers," said Bereczki. "The provincial and federal governments responded by encouraging growth in immigration and international student enrolment. " 

Source: CBC's analysis of Immigration, Refugees and Citizenship Canada data tables

Key findings from IRCC’s data indicate that Ontario’s public colleges are particularly vulnerable to a significant reduction in foreign student enrolment:

• In 2023, 175,000 international students were granted permits to study at Ontario’s public colleges more than 4 times the number of permits issued to Ontario’s universities. In each of the past three years, eight of the nation’s top 10 schools for international study permits have included Ontario public colleges.
• Ontario public colleges make up 19 of the top 25 Canadian schools for which permits have been issued since 2021.

Canadian Schools have the most to lose from Canada's new cap

Number of New Study Permit Applications Approved by Immigration, Refugees and Citizenship Canada by calendar year for all Post-secondary Institutions Approved at least 100 Permit Applications Per Year

Another factor will affect Ontario’s 15 colleges offering post-secondary programs through public college-private (PCP) partnerships, where a private college provides the public college’s curriculum, often through satellite campuses. According to the changes announced by the federal government, international post-secondary students who complete PCP programs will no longer be eligible for a three-year federal post-secondary work permit.
As per  Ontario’s Public College-Private Partnership (PCP) programs, at least 23,000 international students were granted permits to enroll in Ontario’s public college-private partnerships (PCPs) in 2023. However, the number was likely much higher, as the province’s Immigration, Refugees, and Citizenship Canada (IRCC) data does not break out the numbers for these programs at seven of Ontario’s 15 colleges with PCPs.

In conclusion, analyzing the impact of private colleges on Canada's influx of international students reveals a multifaceted scenario. While private colleges have undoubtedly contributed to the growth of international student enrollment, attributing the entire phenomenon solely to them oversimplifies the complex factors at play. It's essential to consider the diverse offerings and strengths of both private and public institutions, as well as broader factors like government policies, economic opportunities, and academic reputation. Moving forward, a comprehensive approach that acknowledges the unique contributions of all types of institutions will be crucial in understanding and effectively managing Canada's growing international student population.