In a shocking turn of events, Conestoga College, once a leader in attracting international students, is grappling with a staggering 97% drop in new study permits for foreign students.
This steep decline, revealed through recent data shared with The Record, signals a seismic shift for the Kitchener-based institution.
With only 540 new permits approved between January and June 2025—down from 17,600 in the same period last year—the college’s reliance on international tuition fees is under severe threat.
As housing pressures and service demands mount, the federal government’s decision to curb student visas in 2024 has left Conestoga scrambling to adapt.
This article dives deep into the crisis, exploring its causes, impacts, and the college’s survival strategies.
Table of Contents
The Collapse of Conestoga’s International Pipeline
Conestoga College was a powerhouse in international education, leading Canada in recruiting foreign students from 2022 to 2024.
At its peak, nearly 90% of its enrollment comprised international students, who pay two to four times the tuition of Canadian counterparts.
This influx fueled significant growth, but the tide has turned.
The 97% plunge in new permits reflects a broader policy shift to alleviate strain on housing and public services, leaving the college with a shrinking pool of fee-paying students.
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Leopold Koff, president of the union representing Conestoga’s faculty, librarians, and counselors, criticized the college’s lack of foresight.
“They bet on the wrong horse,” Koff remarked, highlighting a failure to plan for long-term scenarios despite teaching strategic planning to students.
This lack of preparation has left the institution vulnerable as international enrollment craters.
Financial Fallout and Strategic Responses
The financial implications are dire.
Conestoga’s operating surplus, which peaked at $270 million in recent years, is now at risk, with President John Tibbits warning of a deficit in the fiscal year ending March 2026.
To navigate this crisis, the college is implementing three key strategies:
- Payroll Reduction: After doubling its staff over six years, Conestoga has cut approximately 1,800 faculty and support positions. A notable layoff of 191 support staff in April 2025 underscores the severity of the downsizing. This move aims to align expenses with the reduced revenue from tuition.
- Boosting Canadian Enrollment: In a bid to offset losses, the college enrolled 754 additional Canadian students (a 27% increase) in the spring 2025 semester. While this mitigated a 62% drop (14,049 students) in international enrollment, it’s a small bandage on a gaping wound.
- Relying on Existing Students: With 3,990 permit extensions granted to current international students in the first half of 2025, Conestoga is leaning on these students to sustain revenue. However, extensions are down 18% from last year as graduations outpace new arrivals, adding pressure to an already strained model.
Policy Changes and Tuition Adjustments
Starting January 2026, Conestoga will charge full international tuition rates for courses missed or failed by foreign students, ending a previous policy of applying Canadian rates in such cases.
This change, while boosting short-term revenue, may deter struggling students and further erode the college’s appeal.
Labor Unrest and Campus Challenges
The payroll cuts have sparked labor turmoil.
Unionized support staff, alongside 23 other Ontario community colleges, launched a strike in September 2025.
Their demands include a three-year moratorium on campus closures, mergers, and staff reductions.
Colleges, including Conestoga, have resisted, citing financial constraints, intensifying tensions on campus.
Historical Context: From Boom to Bust
Conestoga’s rise was built on the backs of international students.
Since 2017, the pursuit of foreign enrollment boosted tuition revenue to $720 million and payroll to $450 million, while the value of land, buildings, and equipment soared to $630 million by 2025.
This growth, however, was unsustainable.
The college’s operating surplus hit $558 million over four years, but the current decline threatens to reverse these gains.
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The Bigger Picture: Canada’s Immigration Policy Shift
The federal government’s 2024 decision to reduce student visas stems from nationwide concerns over housing shortages and overburdened infrastructure.
While this policy aims to balance local needs, it has blindsided institutions like Conestoga, which built their financial models around international growth.
Other top schools, such as the University of Toronto (2,405 permits) and the University of British Columbia (1,995 permits) in early 2025, are also feeling the pinch but remain better positioned due to diversified enrollment.
What Lies Ahead for Conestoga?
As of September 23, 2025, Conestoga’s future hangs in the balance.
The college must pivot quickly to attract domestic students, streamline operations, and possibly seek government support.
Without a robust recovery plan, the risk of an operating deficit could lead to further cuts or even campus restructuring.
Expert Opinions and Community Impact
Education experts suggest Conestoga’s over-reliance on international students was a gamble that paid off until policy changes intervened.
Local communities in Kitchener, which benefited from the economic boost of foreign student spending, now face economic ripple effects.
Students, both current and prospective, are left uncertain about the college’s stability.
How to Stay Updated
For the latest developments, follow Conestoga College’s official announcements and local news outlets like The Record.
The evolving situation may offer insights into broader trends in Canadian higher education.
A Turning Point for Conestoga
Conestoga College’s dramatic 97% drop in international student permits marks a critical juncture.
From a leader in global education to a college bracing for a financial crash, the institution’s response will shape its legacy.
As it navigates payroll cuts, enrollment shifts, and policy changes, the coming months will test its resilience.
Stay tuned for updates on this unfolding story that could redefine higher education in Canada.
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