Drop in international student enrolment is costing UPEI and Holland College millions

Post-secondary schools in Prince Edward Island are losing millions in revenue this year after the federal government cracked down on the number of international students they can accept.

Holland College is reporting an 11 per cent reduction in first-yearinternational student enrolment in 2024, resulting in a revenue loss of about $1 million.

For the University of Prince Edward Island, the loss is even more dramatic.

Its first-yearinternational student enrolment dropped by about half compared to last year, resulting in a loss of about$3 million in revenue.

"The number that we have down we can still easily take in double that number of students," said Wendy Rodgers, UPEI's president and vice-chancellor.

"We have room for them."

UPEI president on what the new international student caps mean for the university

1 month ago

Duration 6:51

UPEI president Wendy Rodgers says universities across Canada will have to readjust budgets and rethink enrolment numbers as Ottawa cuts back on the number of international students coming to Canada. As for UPEI, Rodgers tells CBC News: Compass host Louise Martin that there are no cuts coming to programs in the short term, but the school does need to look at its recruitment and retention plans for the future.

While the university hasroom for more students, new federal rules limit the permits available to accept them.

In January, the Liberal government announced plans to reduce the number of new student authorizations it issues for institutions across Canada by more than a third.

In September, it said it would further slash that number by an additional 10 per cent for 2025 before freezing the total for 2026. The new nationwide target is 437,000 students a year.

A recent report commissioned by Atlantic Canadian universities found that the reduced cap has cost the region an estimated $163 million.

Concerns become a reality

In P.E.I., Holland College previously raised concerns thatnew federal ruleswould damage both its bottom line and the breadth and depth of its programming.

Those concerns are fast becoming a reality, according to the college's president and CEO,Sandy MacDonald.

"We had no input. We were just told, 'This is the way it's going to be,'" he said. "The policy is, I don't think, well thought through and it's certainly been poorly implemented."

MacDonald said the federal government,in an effort to target "bad actors"functioning essentially asdiploma mills,has instead taken a blanket approach to the issue.

He believes the result punishes schools like Holland College, which he said bringa reasonable number of international studentsinto communities that can comfortably support them.

Where the problem called for a scalpel, the federal government used a chainsaw.Sandy MacDonald, president and CEO of Holland College

"Where the problem called for a scalpel, the federal government used a chainsaw," he said. "So they certainly would accomplish their goals, but the collateral damage is going to be significant."

Much of the reason international students pay higher fees, according to Rodgers, is so that those extra tuition dollars can go toward services provided by the universities,rather than expecting government funding to cover all the gaps.

Dealing with uncertainty as changes loom for P.E.I.'s international student population

9 months ago

Duration 2:40

Post-secondary schools on Prince Edward Island are answering as many questions as they can for international students trying to understand recent federal changes meant to cap numbers. They're also working with the province to deal with the new limits.

"It is an institution's responsibility, especially for publicly funded institutions, to make sure that services are available for all learners that come to that institution," she said.

Last year, Holland College had about 750 international students, representing more than 25 per cent of its student body. Of those, about 500 were first-year students.

UPEI had more than 2,000 international students last year, representing more than a third of its student body. Of those, 675 were first-year students.

'Loss of reputation'

Among other changes, Immigration, Refugees and Citizenship Canada also limited post-graduate work certificates tostudents in high-demand programs, and put new limits on work permits for the spouses of students in master's degree programs.

Rodgers said the changes collectively "dampened application pressure" at Canadian universities and colleges.

"Part of the problem was created by the loss of reputation to Canada as a learning destination, by the international reception from these regulations," she said.

To recover that reputation, Rodgers said the university plans to forge new international partnerships in the years ahead.

As for Holland College, MacDonald is promoting a three-pronged approach: working more closely with industry, exploring automation, and increasing integration with localhigh schools.

"If we do have to reinvent ourselves with very few international students, that's the avenue we're going to take," he said.