Ontario colleges are fuelling unprecedented growth in international students

Good analysis by there Globe with focus on Ontario and the impact of the Ford government policies in bringing us to this mess:

… There are currently two federal government reviews of the international student program under way, one by Immigration, Refugees and Citizenship Canada and one by Global Affairs. But attempts to curtail the program will have to reckon with its impact on the schools, because international funding has become crucial to Canadian higher education.

Many of the Ontario colleges that have a large proportion of international students have expanded via branch campuses in the Greater Toronto Area or partnerships with private educational providers. The partner schools teach curricula from the colleges and the students receive Ontario college degrees and postgraduate work rights. Both Conservative and Liberal provincial governments have made attempts to limit the size of these lucrative public-private operations. The latest policy imposes a per-college cap of 7,500 students.

Cambrian College, which has a partnership with a private college in the GTA, said its home campus enrolment still has a domestic majority. It said it takes a measured approach because it doesn’t want to bring in more international students than the college or the Sudbury community can accommodate.

The schools have been encouraged on the international path by both provincial and federal governments. The federal government, which aims to attract half a million immigrants a year by 2025, is hoping to build a talent pipeline already equipped with Canadian educational credentials. The provincial governments benefit by placing a growing share of the postsecondary funding burden on prospective immigrants.

According to a report from Ontario Auditor-General Bonnie Lysyk, Queen’s Parkprovided by far the lowest level of government support to colleges of any province in 2018-19. The funding gap that colleges face has been exacerbated by the Doug Ford government’s decision to cut domestic tuition fees by 10 per cent in 2019 and freeze them at that level.

McMaster University economist Arthur Sweetman, an expert on immigration and public policy, said the growth in international students is an example of what happens when policy makers misunderstand the incentives they create.

The federal government has placed no limits on student visas, he said, and the provinces are happy not to increase their grants to postsecondary institutions. The result is that some schools have pushed the envelope.

“I think it’s a regulatory failure,” Prof. Sweetman said. “If you tell people to go make money and here are the rules, people are going to make money and go right up to the edge of the rules.”

Conestoga said in a statement that the well-being of its students is a priority and that it works with them to find affordable housing options. This year, it signed onto a sector-wide set of standards on how best to support international students.

Revenue generated through increased enrolment has helped the college boost hiring, invest in new facilities as well as in new programs and student services, the statement added, including supports for students seeking employment. It has expanded its Kitchener campus, opened one in downtown Guelph and will open two new locations in Milton next year.

David Agnew, president of Seneca, said international students are now the majority at his Toronto college, and that they enrich the learning environment and college experience for everyone on campus. Domestic students aren’t displaced by the international students, as schools are required to offer places in high-demand programs to Ontario applicants first and Canadians second. The school is, however, able to offer more programs for domestic students thanks to the funding that international students provide.

“We haven’t had a grant increase in more than a decade and now we have frozen tuition. We [wouldn’t] have enough money to operate anything close to the high-quality educational institution that Ontarians should expect,” Mr. Agnew said.

Seneca recently crossed the international majority threshold among full-time students, but the ratio drops to 39 per cent when continuing education students are included. Mr. Agnew admits that the concentration of international students at some Ontario colleges could be perceived as a concern by some people. But he says it’s wrong to lay the blame for housing shortages at the feet of international students.

He said housing affordability is an issue that cuts across society. Seneca has about 1,350 residence spaces and more than 28,000 students. The college would like to work with governments and the private sector to build more, Mr. Agnew said.

“Let’s not demonize international students,” Mr. Agnew said. “Let’s work on solutions to the affordable housing issue rather than trying to blame people.”

In a presentation to Hamilton City Council this year, Steve Pomeroy, an industry professor at McMaster’s Canadian Housing Evidence Collaborative, said the biggest added pressure in the housing market is the rapid increase in non-permanent residents, a large chunk of whom are international students or former students. He places the inflection point at 2016, when international enrolments began to jump.

“When these folks come into the housing system they’re trying to find relatively affordable housing and they’re also displacing other folks who are trying to find relatively affordable rental housing,” Prof. Pomeroy said. The competition heats up and international students, who are nearly all renters, often outbid low-income Canadians in the bottom quartile of the rental market.

With as many as 900,000 students expected in the country this year, Prof. Pomeroy said in an interview it’s reasonable to assume they’re adding demand equal to somewhere between 5 per cent to 10 per cent of the national rental housing market of 4.5 million homes.

Economist Mike Moffatt was surprised when he first noticed the close links between the real estate crunch and higher education in London, Ont., where he teaches at the University of Western Ontario’s Ivey Business School. The share of the impact on rent prices attributable to international students hasn’t been quantified, Prof. Moffatt said, but rent increases are happening at the start of term and appear to be rising faster in locations near campus.

London, Kitchener, Windsor – mid-sized Ontario cities that have both university and college campuses and high numbers of international students – have seen record rent increases and the lowest vacancy rates in 20 years, according to a January report from Canada Mortgage and Housing Corp.

The international students do not deserve any blame, Prof. Moffatt said.

“Enrolment growth is not being fed into housing policy and it’s causing all kinds of local tensions,” he said…

Source: Ontario colleges are fuelling unprecedented growth in international students