St. Clair College doesn't expect layoffs or domestic tuition hike with international student cap
School forecasts $40M loss and thinks it could mean 50% fewer international students
St. Clair College doesn't expect any layoffs or a reduction in service after word of Canada's international student study permit reduction.
The school also doesn't intend on bumping up domestic tuition fees anytime soon.
Ron Seguin, vice president of international relations, said they're bracing for a $40-million hit to their bottom line for the 2025-2026 fiscal year. Pre-registrations completed before January 2022 will still be allowed through for the next school year, he added.
"We think we can continue [as is]. If we have to move to a break even model, protect the reserves that we have."
"The student, who understandably is dealing with inflation, high cost and everything else right now … the last thing they need is a tuition increase. But we put money aside, and we are not in crisis. What two or three years down the road looks like, I don't know."
Ottawa announced last week it's capping the number of student permits. This comes amid concern about the impact growing numbers of international students are having on the housing market. The feds say approximately 360,000 undergraduate work visas will be approved for this year — a 35 per cent reduction from 2023.
St. Clair College had nearly 5,300 international students in 2023. A sharp 52 per cent increase from the previous year. As a comparison, the school said its domestic student enrollment was at nearly 7,000 last year — up 2.1 per cent from 2022.
"What's unknown is he's clearly said this is a two-year freeze, so to speak. So what the discussions look like a year into that freeze, we don't know," said Seguin.
"But in all fairness to [immigration] minister [Marc] Miller, he had to do something. He had to make a decision, to put some control into the system."
WATCH | 2-year cap on international students is 'blunt' measure, said immigration minister:
The school believes as many as 50 per cent fewer international students will be allowed at St. Clair in the second year of the temporary cap, according to Seguin.
St. Clair makes up four per cent of the international enrollment in the public college system, he said, with students from 88 different countries — predominantly from Southeast Asia and India.
"If you look at the Indian market, those are typically young people who want to come to Canada, study and stay as a permanent resident. So that will close that opportunity, at least in the next two years."
The loss of international tuition dollars will affect the pace of on-campus infrastructure activity, according to Seguin, but that they've been prepared to financially bridge the gap.
He said the college has been putting money aside into operational reserves to avoid a crisis if something like this occurred.
"I've been at Saint Clair for 24 years and 20 of those years we worked hard to break even the last four to five years. We've had significant surpluses. That level is going to end, but with the reserves we've put aside … we categorically can sit here and say we will not experience layoffs."
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Seguin said with international recruitment not being as prominent for the school over the next few years the focus shifts to attracting domestic students — specifically from the Toronto-area.
"We have approximately 1,000 students from outside that catchment area. So we need to grow in that area. If we can get 1,300-1,500 students from outside of our catchment area to come and study, then go back to their home communities, that would be really, really valuable."
"To be quite honest, on international recruitment, which is through agents and contractors, they're not happy right now. They are going to see a significant reduction in the opportunities in Canada. And history tells us they will start to lobby other countries like Australia, the United States."
Chaos for students, says college advocacy group
Colleges Ontario calls the student visa cap a "blunt approach" that doesn't consider the talent needs of the province.
In a statement issued by the advocacy group representing Ontario's 24 provinces, it said the international student reduction leaves thousands of people in limbo with their "hopes on hold."
"Very concerned about the attacks on a high-performing, efficient public college system — impacting our reputation with potentially long-lasting negative repercussions," it read.
"The federal government's changes are creating havoc for students now."
The advocacy group said Ottawa is failing to recognize that public colleges have a year-round intake of students "designed specifically to meet employer needs."
"That means there are students already well into the application process, ready to start in May in programs for key sectors of Ontario's economy."
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