2 N.S. universities say international student permit changes will cost them millions

Two Nova Scotia universities say recent changes made to international student permits could cost them between $8 million and $12 million this year, but the potential revenue loss isn't the only problem.

Earlier this year, the federal government decreased the number of undergraduate study permits by 35 per cent, in part over concern about the impact international students are having on the housing market.

Nova Scotia was allocated 12,900 study permits for the upcoming academic year, which is down about 7,000 from last year.

CBC News contacted the province's 10 universities and the Nova Scotia Community College to better understand how these changes would affect them.

Saint Mary's University and Acadia University say they will be the hardest hit.

'Applicant pool is severely depleted'

Saint Mary's did not respond to interview requests, but an email sent by the university's president to staff laid out how a reduction in study permits and other changes by the federal government, such as an increased financial requirement for students, would affect the Halifax university.

"Unfortunately, due to the disruption stemming from these new requirements and delays, the applicant pool is severely depleted, and we must forecast a potential decline in revenue from first-year international tuition alone of between $5 million and $6 million," wrote Robert Summerby-Murray in an April 23 email.

For context, the university had revenues of $140 million for the year ending March 31, 2023 in its latest annual financial report.

The anticipated reduction in tuition revenue from international students is happening alongside other financial woes at the university and declining long-term enrolment. Faculty members have called for the president to resign.

With the federal government reducing the number of study permits, it was up to the province to allocate how many each institution receives. Saint Mary's saw an eight per cent decrease.

While Acadia was given a 14 per cent increase in study permits compared to 2023, officials are warning of a significant financial impact.

Scott Duguay, the university's vice-president of student experience, said the university was seeing a 48 per cent increase in international student applications at the time the federal government announced changes in late January.

Duguay said this will cost the university between $3 million and $6 million in the first year alone.

"When you have a shortfall on an enrolment target in one year, there's really a four-year impact," he said. "There's no real way to recover those students that didn't come that first year."

For the financial year ending March 21, 2023, Acadia had revenues of almost $117 million.

Duguay said international students represent about 16 per cent of the student body, but the university is working to increase that to 20 to 25 per cent.

He said having international students is a learning opportunity for domestic ones, and vice versa.

"And that's really where we feel a liberal education becomes quite magical, frankly," he said. "It's in that sharing of ideas and challenging your own sets of beliefs."

Some universities expect minimal financial impact

Statements to CBC from the Atlantic School of Theology, Dalhousie University, Mount Saint Vincent University, the Nova Scotia Community College, St. Francis Xavier University and the University of King's College did not anticipate much of a financial impact.

However, St. FX did note other consequences.

"The biggest hit was the delay to the process and the damage to Canada's brand as a country that welcomes international students," wrote spokesperson Cindy MacKenzie.

"Students are looking elsewhere."

Acadia's Duguay shares that sentiment.

"I think we need to rebuild our brand globally as well because the sort of chatter around the globe when we were going through these changes and the implementations were put forth is that Canada is in a bit of a disarray," he said.

Cape Breton University, NSCAD University and Université Sainte-Anne did not respond to requests for comment.

David Dingwall, the president of CBU, previously told CBC News his institution is facing a major financial problem unless it is able to convince immigration officials to grant more prospective students the permits they apply for.