Author: Azadeh Haidari-Garmash, RCIC
Algonquin College Grapples with $32M Deficit Following International Student Rule Changes
Algonquin College is bracing itself for a staggering $32 million plunge in revenues as a consequence of the federal government's changes to international student policies and modifications to post-graduate work permit eligibility.
In an announcement, the college's President and CEO, Claude Brulé, projected a shortfall of nearly 2,400 incoming students due to the policy changes, forcing the institution to grapple with "difficult budgetary decisions now" to navigate the funding deficit.
Federal Policy Changes Impacting International Student Levels
Earlier this year in January, the federal government unveiled a temporary two-year cap, slashing international student levels by 35 per cent for this year. This was followed by a further reduction of 10 per cent in September, trimming the number of international student study permits down to 437,000, a target the government intends to maintain until 2026.
Alongside these changes, the federal government also introduced modifications to post-graduate work permits this fall. These permits have now been restricted to areas suffering from labour shortages within Canada.
Algonquin College's International Student Enrollment Takes a Hit
Algonquin College's 2024-25 second quarter projection report corroborates the impact of the policy changes, confirming that international student enrolment will miss its mark by nearly 2,400 students in comparison to the budget target of 7,447 new international students.
In a bid to mitigate the financial impact of these changes, Algonquin College has outlined several measures, including:
- Deferring expenses where practical and reasonable.
- Reducing corporate expenditures.
- Reviewing all hiring and staffing decisions to ensure only roles essential to supporting learners and priority needs are processed.
Adding to the list of setbacks, Algonquin College's International Education Centre in Toronto has now closed its doors.
During the 2024 fall term, Algonquin College reported a total enrolment of 20,980 students, of which 6,246 were international students. The effects of recent policy changes cast a shadow of uncertainty over the future composition of the college's student body, highlighting the profound impact immigration policy can have on higher education in Canada.
As Algonquin College navigates this challenging landscape, it underscores the broader implications for Canadian educational institutions grappling with similar changes. It remains to be seen how these institutions will adapt to policy shifts and what strategies they will employ to ensure their financial stability and continued commitment to international education.
