Drop In Indian Student Applications To Cost Canada Billions: Here’s Why

New immigration policies introduced by the Canadian government are projected to significantly impact the country’s post-secondary education sector, with Ontario alone facing an expected loss of CDN$1 billion over the next two years. This alarming forecast comes from a recent report by the International Consultants for Education and Fairs (ICEF) Monitor.

The Canadian government has rolled out several measures aimed at regulating the influx of international students, which includes a federally mandated cap on foreign enrollments. This cap will lead to a 35% reduction in new study permits for 2024, followed by an additional 10% cut in 2025. Notably, these restrictions will extend to master’s and doctoral students starting in 2025, further tightening the system.

Additionally, a new savings requirement of over CDN$20,000 has been introduced for students applying for study permits. Partners of some undergraduate and master’s students will no longer be eligible for open work visas, while students from certain fields will lose their eligibility for the Post-Graduation Work Programme (PGWP) starting in November 2024.

The Importance Of Indian Students In Canada

Indian students have played a vital role in the Canadian education landscape. In 2022, there was a remarkable 47% increase in study permit holders from India, totaling over 319,000. However, this year has seen a notable decline in applications. As of August, 137,445 Indian students had received study permits, marking a 4% decrease from 2023. Currently, around 600,000 Indian students are enrolled in Canada, but this number is expected to drop further due to the newly introduced policies.

Ontario Faces The Brunt Of Financial Losses

Ontario, which hosts over 40% of Canada’s international students, is predicted to incur the largest financial losses from these changes. Steve Orsini, president and CEO of the Council of Ontario Universities (COU), estimates that these policy changes could cost Ontario universities CDN$300 million in 2024/25 and an additional CDN$600 million in 2025/26. Orsini emphasized that this amounts to nearly a $1-billion financial impact in the first two years alone. Given that Ontario’s post-secondary institutions receive the lowest funding in the country, they heavily rely on international student tuition, which is significantly higher than domestic fees.

The Ontario Federation of Faculty Associations (OCUFA) echoed these concerns, highlighting that international students in Ontario pay the highest tuition, while domestic students pay the fourth highest in Canada due to the province’s funding challenges.

Wider Implications for Canadian Education

The financial strain is not limited to Ontario; Atlantic universities are also anticipating sharp declines in international enrollment. A report commissioned by the Association of Atlantic Universities (AAU) predicts a loss of nearly 3,000 international students in the region, translating to a CDN$163 million decrease in spending and over 2,200 job losses.

Gabriel Miller, president of Universities Canada, expressed alarm over the inclusion of master’s and PhD students in the enrollment cap, noting that Canada’s international reputation has already suffered over the past six months. He urged the government to take action before the decline results in significant cuts across institutions that could harm both students and the economy.

The Economic Contribution Of International Students

The economic contributions of international students to Canada cannot be overstated. A Global Affairs Canada report indicated that international student expenditures contributed CDN$30.9 billion to Canada’s GDP in 2022, with Indian students playing a significant role in this growth. The rapid increase in international student numbers has been a boon for Canada’s educational system, doubling its value from CDN$15.5 billion in 2016 to CDN$37.3 billion in 2022. This upward trend would have likely continued in 2023 if not for the newly imposed restrictions.

Reevaluating Government Policies

In light of these developments, many stakeholders believe that the Canadian government needs to reassess its approach to international students. Orsini suggested that the government should focus on addressing only unscrupulous institutions rather than penalizing the entire sector. He stated, “While we recognize the need to address bad actors who have inflated international student enrollment, these measures are causing collateral damage to universities that offer quality education and provide strong support for their students.”

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