Impact on Fanshawe College unclear as Ottawa unveils cap on international study permits

Questions remain about the impact the recently announced cap on international study permits may have at London's Fanshawe College, one of several Ontario post-secondary institutions that has seen its international student population balloon over the past several years amid declining domestic headcounts.

The federal government announced Monday that it would temporarily cap the number of new study permits it issues over the next two years, with a 35 per cent reduction this year. The number of permits issued in 2025 will be determined at the end of this year.

It comes as Ottawa tries to reduce the impacts of an expanding international student population on the country's tight housing system and on other services, such as health care.

Nearly 560,000 study permits were issued last year, according to government figures, and there are nearly one million international students in the country, roughly three times what it was a decade ago.

"I wouldn't say (I'm) surprised, because I knew there were talks going on... a little bit of a surprise that it's really, super soon," said Stephin Sathya, president of the Fanshawe Student Union. "At this moment, we're just collecting some information and seeing, like, what is the extent of the effect on our college."

The school reported an international student enrolment of just over 17,500 from May 2021 to April 2022, and roughly 12,000 international study permits were issued for the college's main campus from January 2022 to April 2023, according to economist Mike Moffatt. Western University saw 1,846 in the same period.

The government cap will only apply to undergraduates, and won't apply to those seeking permits for master's programs, doctoral degrees, or elementary and high school students. Ottawa will also require applying international students to provide an attestation letter from a province or territory.

International students taking five Fanshawe courses in Toronto as part of a 2022 partnership with the private ILAC International College will also be impacted. Starting in September, those students will no longer be eligible for a post-graduation work permit.

Fanshawe College officials were not available for comment on Monday.

Some international students CBC London spoke with at Fanshawe's main campus on Monday offered mixed reactions to the government's plan.

"As an international student, life is very difficult here in Canada. And in the recent scenario, I think this is a very good decision, in my view," said Krishna Giri, a postgraduate student from Nepal who is studying in construction project management.

"Most of the places we found housing crisis, rent crisis, as well as job opportunity crisis. So I think it's a good decision… Gradually, I think the decision (has) to be changed, or amended."

Like other international students, Giri's tuition is about four times higher than his Canadian classmates. 

Ontario post-secondary institutions have become dependent on international student tuition following a tuition freeze imposed by the province in 2019. Nearly three-quarters of all tuition paid to Ontario schools in 2022 came from international students.

At Fanshawe, the college reported a nearly $44 million surplus for the fiscal year ending March 31, 2022, up from $17.8 million a year earlier, an increase primarily driven by a planned increase in international students, the college's 2022-23 annual report said.

Shardul Sonone, a second-year student from India studying operations management, said he understood the government's move, and why some would pin the blame on international students for the housing crisis and rising rents.

"But at the same time, international students also -- I wouldn't say have a right, because nobody has a right for anything -- them getting blamed for just trying to study and make a living for themselves is not fair," he said.

On top of higher tuition, international students also have to front thousands of dollars for a cost-of-living financial requirement to show they will be financially prepared for life in Canada. That requirement rose to $20,635 on Jan. 1 from $10,000, where it had stayed since the early 2000s, according to the federal government.

Sonone said many international students are struggling, noting that finding work to pay for expenses took months when he first came to Canada, and what was earned was just enough to cover rent and food. The $10,000 from the cost-of-living requirement helped for the first year, but after that he was on his own.

"Now in my second year, whatever I have to earn, I won't be able to save it for my fees. So I just have to earn money for my rent and food... I won't be able to save money to pay off my second year tuition fee."

Standing in the printing room of Fanshawe's photography program, third-year student Miguel Velasquez of Colombia echoed Sonone's sentiments about the cost of living.

He added that while he was happy he won't be affected by the government cap, he was sad that it had to be implemented.

"It affects a lot of plans and a lot of people, and I do know what kind of struggle you go through to get the visa and to get here. It's sad that it has to be— I don't know if it has to be that way, but it's happening," he said.

"It's a lot of problems coming together at once. International students do need a lot of space, like take resources from this country... But if you look at the other way… the landlords, because of that, are rising the prices. I think it's just a cycle. I'm not sure if I would blame us for that."