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Institutions and Government Dependence on International Students: A Balanced Analysis

Canada’s post-secondary sector has become increasingly dependent on international students over the past decade. Their presence now sustains institutional budgets, strengthens local economies, and contributes to Canada’s future workforce. At the same time, this reliance has created significant challenges for the students who help keep the system afloat.



Why Institutions and Governments Depend on International Students

Financial Stability for Institutions


Declining provincial funding has pushed colleges and universities to rely heavily on international tuition, often three to five times higher than domestic fees. This revenue supports program development, salaries, facilities, technology, and student services. Without it, many programs would face cuts. Statistics Canada (2025) reports substantial increases in international tuition across the country.


Economic and Social Contributions

International students contribute billions annually through spending on housing, food, transportation, and local services. They also bring cultural diversity, global perspectives, and essential skills. Many remain in Canada as skilled workers, helping address labour shortages and long-term demographic needs. For governments, this makes international education both economically strategic and socially beneficial.


What International Students Experience: Key Challenges


Our group’s research drawing on IRCC communication, student interviews, WhatsApp outreach, and nonprofit insights showed that international students face major challenges. Many struggle financially, often skipping meals, living in crowded spaces, working long hours, and dealing with rising costs, all of which harm their well-being. Students also encounter confusing rules and limited guidance on study permits, work regulations, and IRCC processes. Additionally, institutional support is inconsistent; while some colleges offer strong services, others provide minimal help, leaving students frequently redirected and without clear answers. 


Research Evidence

Across interviews, documents, and community resources, one conclusion stood out: International students are essential to the system’s financial health, yet the support they receive often falls short of their needs.


Shared Goals Between Students and Institutions


Despite differing perspectives, students and institutions share important priorities:

  • Quality academic outcomes

  • A stable, well-funded education system

  • Clear communication

  • Safe, supportive learning environments

  • Strong career opportunities

These common goals form a basis for collaborative improvement.(Statistics Canada, 2025)


(Statistics Canada, 2025)


Building a Fairer, More Supportive System


A balanced approach is key. Institutions could adopt transparent tuition practices and clearly explain how fees are used. Students could benefit from a centralized platform providing information on study and work regulations, financial aid, mental health support, housing resources, and academic services. Strengthening culturally informed counselling, mentorship programs, and settlement assistance can improve well-being while maintaining institutional stability. Collaboration between institutions, government agencies, and community organizations can further enhance communication and efficiency. By addressing the concerns of both sides, this approach creates a system that benefits students and supports the sustainability of post-secondary education in Canada.


Blog Author: Harmanderp Kaur December 8, 2025

                                                          

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