Fanshawe College is facing significant financial turmoil as steep declines in international student enrolment threaten the institution's future and its workforce. The London, Ontario-based college announced on Monday, via a video to staff from President Peter Devlin, it anticipates deficits totaling $35 million for the current year and even more staggering $60 million for 2026 due to changes imposed by the federal government on international student study permits.
“Our financial challenges are significant and will impact our workforce,” Devlin stated. “These cuts will occur in phases as we manage changes resulting from the decline in international enrolment.” He added the human resources team would collaborate with department and union leaders to assist affected staff during transitions.
This financial crisis stems from the federal government's decision to cap international student enrolment to alleviate pressures on the housing market—an action born from rising tensions about the influx of international learners and the growing challenges they present to the local infrastructure. With pandemic-era support dissipated and budgets tightening rapidly, Fanshawe stands at the brink of major operational shifts.
Devlin noted the dramatic 41% drop in new international student enrolment for the winter semester and projected another plummet of 45% for the upcoming summer. This reduction is expected to result in roughly $200 million less revenue over the next two years. The college's budget, traditionally bolstered by international students willing to pay higher tuition—three to five times more than domestic fees—now faces drastic cuts.
With approximately $530 million earmarked for this year, the college's budget is slated to shrink to about $371 million next year, reflecting the severity of these enrolment declines. The impact of this financial crisis could see layoffs and program suspensions, following the elimination of 18 programs last week, including popular fields such as public relations, graphic design, and mental health.
Mark Feltham, President of the Fanshawe College Faculty Union, expressed deep concern over these financial projections. He stated, “We will be working very hard... to protect our members’ rights during this challenging period.” Feltham has called on the province for increased funding, emphasizing the dire need for support to maintain educational integrity and job security.
“The deficits are alarming, and we call on Ontario to provide more funding,” added Siddharth Singh, President of the Fanshawe Student Union. He voiced the concern over the college's reliance on international students for sustaining its financial health. The union and support staff's unions have jointly urged the province to step up and provide financial assistance.
This situation follows trends seen across other Ontario colleges. Centennial College, for example, has stopped taking new students for numerous programs, including business and media, due to similar financial strains resulting from the international student quota. Algonquin, St. Lawrence, Mohawk, Sheridan, and Seneca Polytechnic have also announced program cuts.
The cuts at Fanshawe are expected to affect future generations of students' education experiences. Ava Drysdale, a first-year honours bachelor of commerce student, shared her worries about the potential job losses among faculty members. “I hope everybody is able to keep their jobs. I also hope our program is able to continue,” she highlighted. Her statements reflect the anxiety shared among students who appreciate the diverse perspectives brought by international learners.
First-year carpentry student Riley Reaume pointed out how the changes might lead to smaller class sizes and reduced teaching staff, potentially jeopardizing quality education. “Class sizes are gonna get smaller; which means the teaching staff is also gonna get smaller,” she noted. The ripple effects of declining international enrolment, combined with anticipated budget cuts, will likely lead to harder times for both faculty and students.
The problems reported at Fanshawe aren’t isolated. Bonnie Lysyk, Ontario’s Auditor General, previously noted the province's low funding for full-time domestic students compared to other areas. With high dependency on international enrolment revenue, Ontario colleges find themselves precariously positioned to adapt if international students, attracted to its shores, face barriers and depart for more welcoming educational environments.
This turbulent situation is prompting calls for immediate action at the provincial level to address the shortcomings of the existing funding models, for both international and domestic student provisions. Educational institutions like Fanshawe College, which serve hundreds of thousands of residents, are riding the wave of changes forced by policy decisions—a reality they could navigate if properly supported.
With questions of educational equity and workforce development at play, the outcome of these financial scenarios will not just affect the college's operation but will resonate throughout the broader community. The urgency for solutions is felt across the education spectrum, emphasizing the need for collaboration among stakeholders to secure the future of Ontario’s colleges.