Ontario Colleges and International Students: A Pivotal Time (2024) PDF

POLICY BRIEF Ontario Colleges and No. 18, February 2024 International Students: Naomi Alboim, Karen Cohl, Marshia Akbar...

POLICY BRIEF Ontario Colleges and No. 18, February 2024 International Students: Naomi Alboim, Karen Cohl, Marshia Akbar A Pivotal Time EXECUTIVE SUMMARY Canada has reached a pivotal moment regarding international students. Surges in the number of arrivals and inadequate safeguards have led to concerns among the media, public, politicians, educators, and students. Reforms are urgently needed. This policy brief recommends solutions in relation to Ontario colleges, although some may also be helpful for other provinces and the university sector. We chose to focus on Ontario colleges for several reasons. Within Canada, public colleges in Ontario receive the lowest level of funding from their provincial government and have relied most heavily on international students as a revenue source. Many public colleges outside the Greater Toronto Area have contracted with private career colleges to deliver programs to international students in the GTA. This has raised concerns about access to quality education, housing, and services. It also runs counter to federal and provincial objectives to attract and retain international students across the province. Our recommendations have been designed to enhance the integrity of the International Student Program in public colleges and to address challenges that students face. They build on principles in the Canada-Ontario Immigration Agreement. And they respond to new measures recently announced by the federal government and its intention to develop a sustainable path forward for international students. Summary of recommendations: y Implement recommendations of the Blue-Ribbon Panel and Auditor General of Ontario for sustainable Funding college funding. y Increase funding for settlement and college services for international students. Joint y Consult on and table multi-year levels of international student arrivals each year. planning y Conduct inclusive processes to develop college housing strategies and a framework for recognized institutions. Post- y Ensure post-graduation work permits allow college graduates to gain the experience needed for permanent graduation residence. success y Expand the Ontario Immigrant Nominee Program to provide more spaces for qualified college graduates. y Wind down partnerships in which a private college delivers curriculum on behalf of a public college. Partnerships y Improve oversight of overseas recruiters. y Report domestic and international student outcome indicators for each public college, including student Data satisfaction rates. y Conduct bilateral evaluations of the International Student Program. Canada Excellence Research Chair in Migration & Integration PAGE 2 POLICY BRIEF The recommendations are directed to the federal and Ontario governments and the public college sector, depending on their mandates. Collaboration with service providers, employers, and students will be essential for successful implementation. The audit also recommended that the Ministry of A FUNDING CRISIS FOR ONTARIO Colleges and Universities develop a formal and COLLEGES comprehensive strategy for international students, including options to diversify revenue streams to reduce the sector’s high reliance on them. In its 2023 The high tuition fees that international students annual follow-up report, the Auditor General of Ontario pay have helped public colleges to survive in light of found it notable that little or no progress has been provincial funding decisions and declining domestic made on this front. student enrolment. In the Public Colleges Oversight In 2023, the Ministry established a Blue-Ribbon Panel value-for-money audit (Auditor General of Ontario, on postsecondary education financial sustainability. Dec 2021), the views of four selected public colleges The Panel recommended an increase to per-student highlight historical fiscal pressures: grants, removing the freeze on tuition fees for “The Auditor General’s report has shined domestic students, and increasing financial support a timely spotlight on the issue of the to students in need. The Ontario government has not inadequate financial support of the college implemented these recommendations. sector in Ontario. At the heart of the issue The revenue crisis for Ontario colleges has become of the growth of international enrolment more acute due to student visa caps announced by the is chronic and historical underfunding federal government on January 22, 2024. A significant by the provincial government, clearly loss in revenue from international students will place demonstrated by the comparison of the public colleges at risk of being unable to maintain funding levels across Canada. As the quality, staffing, and operations unless the province Auditor General’s figures show, Ontario’s dramatically increases its funding support. It is now colleges are underfunded by thousands even more urgent for the province to implement the of dollars per student compared to other recommendations from the two independent reviews. provinces. Unfortunately, this is not new. But years of inadequate provincial funding and challenging demographics have been compounded by the government’s 10% A significant loss in revenue from tuition fee reduction, followed by a tuition fee freeze. The result is that colleges cannot international students will place the survive on domestic student enrolment public colleges at risk of being unable to alone and have increasingly turned to maintain quality, staffing, and operations international enrolment as a source of unless the province dramatically increases revenue.” its funding support. The audit found that despite comprising 30% of the colleges’ student population, international students generated 68% of tuition revenue, totaling $1.7 billion in 2020/21. Cutbacks in provincial grants to colleges and student financial assistance, included in the 2022 Budget, continued the pattern of Ontario government decisions that propelled colleges to admit more and more international students. PAGE 3 POLICY BRIEF A SURGE OF INTERNATIONAL STUDENTS For over a decade, Ontario colleges have received growing numbers of Figure 1: Ontario college enrolments – international students international students. The Public Colleges Oversight audit reported that international student enrolment in public colleges grew by 342% between 2012/13 and 2020/21, while domestic enrolment declined by 15%. Based on data from Immigration, Refugees and Citizenship Canada, a recent Globe and Mail article observed that “The international student boom is disproportionately an Ontario college phenomenon.” The dramatic influx has been Source: Statistics Canada stopped in its tracks by new features imposed by the federal government’s announcement on January 22, 2024. In Ontario, the cap on student visas time that they table levels for permanent residents is likely to result in a 50% reduction of international each year. student admissions, although it is not yet known how the Ontario government will allocate available spaces among universities and colleges. The new requirement PARTNERSHIPS WITH PRIVATE for attestation letters from the province before a COLLEGES IN THE GTA student visa can be issued has brought visa approvals to a halt until the Ontario government can put an Public colleges in the Greater Toronto Area (GTA) have attestation process in place. had considerable success in attracting international The significant reduction in student visas will affect students because they are based in a location where more than college revenues. The labour market will also many students wish to live, study, and work. Public be affected since many employers rely on international colleges in other regions find it much more difficult to students who work during and after their studies. attract international students to their communities. Although the federal government has decided to As a result, 14 of Ontario’s 24 public colleges that impose caps on student visas for 2024 and 2025, are located outside of the GTA have entered into it plans to work with the provinces and education partnerships with private career colleges located stakeholders to establish long-term sustainable almost exclusively in the GTA. levels of international students for future years. A Under these public-private partnerships, the collaborative process to set targets for international private college delivers curriculum and services to students is much better than arbitrary caps and would international students on the public college’s behalf. be a welcome change from unlimited numbers of As a result, an international student studying at a student visas. Ideally, the federal government will table private college in Toronto or Brampton could receive multi-year levels of international students at the same a diploma from a public college located in Sarnia PAGE 4 POLICY BRIEF or North Bay, with little or no interaction with that college or Figure 2: Enrolment in four public colleges, fall 2020 connection to its community. Four public colleges in Ontario enrolled more international students than domestic students in the fall of 2020, largely due to their partnerships with private colleges. (See figure 2.) International students at a private partner campus are often worse off than students at the public colleges’ own campuses. The quality of education may not be comparable. And students in the private locations typically find Source: Figure 1 of the Public Colleges Oversight audit. Includes themselves in classes populated international students at both home and private partner campuses, solely by other international and full- and-part-time enrolment. students, missing the chance to interact and make meaningful connections with Canadian students. Further, the cannot be overstated. The permit has been a huge partnerships result in large clusters of international draw for international students who want to stay and students in the GTA. This exacerbates housing work after they graduate. Without the possibility of a challenges and runs counter to the objective of permit, they will seek other places to study, whether in attracting and retaining people across the province. Canada or abroad. In 2017, the Ontario government commissioned an On January 26, 2024, the Ontario government external review of the public-private partnership announced a moratorium on new partnerships and its model. The report of the external reviewer intention to increase oversight of the existing ones. recommended that the model be terminated due to A better approach would be to plan an orderly wind- quality concerns and inherent legal, reputational, and down of the fundamentally flawed public-private financial risks. It also recommended a comprehensive partnership model. wind-down process along with provincial funding changes to strengthen public college sustainability. Based on this report, the government of the day told CHALLENGES FACED BY public colleges that they would have to wind down INTERNATIONAL STUDENTS their partnerships. After the June 2018 election, the new government decided that the model would The surge of international college students in Ontario continue and issued a binding policy directive. is not solely due to the proliferation of public-private On January 22, 2024, the federal government partnerships. Many international students attend announced that international students who begin public colleges that do not have partnerships. Others studies at a private college licensed to deliver the attend the home campuses of public colleges that curriculum of a public college will no longer be eligible do have partnerships. No matter where they study, for post-graduation work permits. This change takes international college students face multiple challenges. effect on September 1, 2024 and its impact on the future viability of the public-private partnership model PAGE 5 POLICY BRIEF Expectation versus reality and friends to assist in the search, many end up in crowded accommodation with exorbitant rents. Public colleges use overseas recruitment agencies On January 22, 2024, the federal government to attract international students. According to the indicated that part of the sustainable path forward Public Colleges Oversight audit, colleges spent over will be “ensuring post-secondary institutions are able $114 million in commissions to such agencies in 2020- to provide adequate levels of student housing.” A 21. Unfortunately, some recruiters oversell success few days later, the Ontario government announced in gaining employment and becoming a permanent a suite of new measures, including a requirement resident. And they undersell the challenges in terms for colleges and universities to have a “guarantee of housing and the cost of living. The recent federal that housing options are available for incoming decision to deny open work permits to the spouses of international students”. On the surface, these are international students in undergraduate and college laudable goals. Without a clear sense of the nature of programs will add to financial stress. these new housing requirements and the implications The CBC Fifth Estate documentary Sold a Lie for the colleges, it is difficult to assess their feasibility, revealed scams and frauds involving certain recruiters. especially without additional funding. The discrepancy between what prospective students are told and the realities they face upon arrival can Services be devastating, sometimes leading to mental health issues and suicide. In 2023, the Auditor General of International public college students paid an average of Ontario observed that there has been little or no $14,306 per year in tuition in 2020-21, over four times progress by the government in implementing its 2021 more than domestic students. Despite the high fees, recommendation on the selection and removal of colleges often do not provide sufficient services for international student recruitment agencies. international students. While public colleges typically offer services such as academic support, guidance, The recruiters highlighted in the CBC documentary and career counselling to all students, these services were primarily from India which is the top source are not always responsive to the specific needs of country for international students in Ontario. The international students. Public Colleges Oversight audit found that 62% of international students in Ontario public colleges In addition, as temporary residents, international were from India in 2020/21, followed by China at 6%. students are ineligible for federally funded settlement The audit also showed that in eight public colleges, programs. They are eligible for Ontario-funded students from India comprised 83 to 99 percent of settlement services but there is not enough funding to the college’s international students, including those meet the demand. This leaves international students studying at private partner campuses in the GTA. without the help they need to obtain housing, The over-reliance on one country creates the risk of employment, mental health support and social a sudden enrolment and revenue drop if geopolitical services, or to pursue permanent residence. issues threaten ties between that country and A previous CERC Policy Brief proposes a collaborative Canada. model among governments, postsecondary institutions, and the settlement sector for supporting Housing international students to achieve success. International students face many housing challenges Employment and have been unfairly blamed for the housing crisis. A report by four senators on strengthening the integrity The lack of suitable work experience related to their of the International Student Program noted research field of study, both during and after their college showing that 40% of study permit holders across program, constitutes a barrier for international Canada reside in inadequate accommodations, a stark students who desire permanent residence. For contrast to 9% in the general population. The situation example, without a co-op work permit, they may is likely to be even worse in Ontario. In the absence be ineligible for valuable work placements that their of college-provided housing, students are left to find domestic counterparts enjoy. their own accommodation. With no network of family PAGE 6 POLICY BRIEF Even after graduating with a Canadian credential, As shown in Figure 3, between 2013 and 2020, the studies show that employers are less likely to hire percentages of international graduates with a college international students due to their temporary diploma employed in their related field consistently status. Those who do find employment are often trailed behind their domestic counterparts in Ontario. underemployed, underpaid, and in low skilled jobs. The gap has widened over time, indicating that The lack of personal networks makes the search for international graduates face more significant employment especially difficult. employment challenges. Figure 3: Ontario college graduate employment rate in a related field, with diploma credential 100% Domestic students International students 90% Graduate Employment Rate 80% 78% 76% 75% 74% 71% 72% 72% 71% 70% 70% 69% 70% 68% 64% 60% 52% 50% 20 20 14 15 16 17 18 19 14 15 16 17 18 19 6- 6- 3- 3- 7- 7- 5- 8- 5- 8- 4- 4- 9- 9- 1 1 1 1 1 1 1 1 1 1 1 1 20 20 1 1 20 20 20 20 20 20 20 20 20 20 20 20 Source: Higher Education Quality Council of Ontario, Quick Stats, 5.3 Graduates who obtain employment may find that home, others may remain in precarious situations as the length of their post-graduation work permit temporary foreign workers. Depending on the situation doesn’t provide enough time to accumulate the in their home country, some may apply for refugee work experience they need to qualify for permanent status. residence. The federal government is planning to The limited number of spaces is at odds with the reform the criteria for obtaining a post-graduation large numbers of students who intend to apply for work permit to better meet labour market and regional permanent residence. A 2021 survey by the Canadian needs. If criteria are tied too closely to the content Bureau for International Education of international of college programs, this could penalize international students across Canada indicates that nearly 60% students who already have degrees and work intended to make an application. Of international experience from their home country that would enable students in Ontario, 87.4% indicated an intention to them to contribute to the labour market. stay there after receiving permanent residence. Transition to Permanent Residence DATA ON INTERNATIONAL Qualified graduates in Ontario can transition to permanent residence through federal economic STUDENTS immigration programs or the Ontario Immigrant Nominee Program but only a small proportion will Publicly available data on Ontario public college be successful, given the limited number of available outcomes are broken down either by college or by spaces. While many unsuccessful applicants will return domestic and international student status. It would PAGE 7 POLICY BRIEF be preferable to have data showing outcomes per ensure recognized institutions continue to meet the college for domestic and international students. requirements. Such data are necessary to properly identify trends, Provinces would be well-positioned to play a successes, and barriers that need to be addressed. monitoring role if the framework is developed jointly The data would help international students to make by both levels of government. Making the list of informed application decisions. It will also be important recognized institutions easily accessible online would to reinstate reporting of student satisfaction rates by assist potential international applicants to make college, as recommended by the Auditor General of informed decisions. Ontario. As shown in Figure 4, the plan to develop a recognized institution framework is just one of several elements RECOGNITION FRAMEWORK contained in the federal government’s announcement of Jan. 22, 2024. The federal government intends to develop a framework for recognizing institutions that have high CANADA-ONTARIO IMMIGRATION standards regarding international students. Colleges and universities recognized under the framework AGREEMENT would receive benefits such as priority student visa processing. Annex E of the Canada-Ontario Immigration The Toronto Star has reported on criteria under Agreement articulates how the federal and Ontario consideration for the framework. The criteria would governments will work together on matters related to focus on the quality of education international international students. The Annex contains excellent students receive, their educational outcomes, the principles, but some of the developments described diversity of countries they come from, and the earlier in this policy brief represent inconsistencies with housing and other supports that postsecondary those principles. institutions provide. This is a positive direction but Joint planning: The federal government’s it can only be effective with ongoing monitoring to imposition of student visa caps and attestation requirements is inconsistent with the principle Figure 4: Highlights from Federal Government of joint planning and preparation in the event of Announcement, Jan. 22, 2024 changes to policies, programs and procedures. y Intake cap on international student permits High-quality education: Lower-quality y Provincial attestation letters required for education for international students at private each study permit application college campuses in partnerships with public colleges is inconsistent with the principle of high- y Intention to develop a sustainable path quality educational opportunities for all students. forward for international students, including: Regional distribution: The large influx Finalizing a recognized institution of international students to the GTA under framework public-private partnerships is inconsistent with Determining long-term sustainable levels the principle of facilitating study, work, and of international students immigration for international students in regions across Ontario. Ensuring post-secondary institutions can provide adequate levels of student housing Employment and permanent residence: Barriers to skilled employment and limited spaces y No eligibility for a post-graduation work for permanent residence are inconsistent with permit for students who attend a private the principle of facilitating transition to post- college licensed to deliver the curriculum of graduation employment and permanent residency. a public college (starting Sept. 1, 2024) Our recommendations have been designed to embody y No open work permits for spouses of the principles of the Agreement. They also promote international students in undergraduate bilateral evaluations of the International Student and college programs Program in Ontario. PAGE 8 POLICY BRIEF 6. Use a collaborative process involving colleges, RECOMMENDATIONS municipalities, and housing experts to develop ways to ensure housing for international students. (Lead: The combination of public concerns and recent federal and Ontario governments) government announcements makes this a pivotal time for policy reform. Our recommendations have been POST-GRADUATION SUCCESS designed to enhance the integrity of the International 7. Ensure that the duration and criteria for post- Student Program in public colleges and to address graduation work permits allow international college challenges that students face. We hope that some of students to gain the work experience they need the recommendations will be of assistance beyond to qualify for permanent residence. (Lead: federal Ontario and to the post-secondary sector more government) broadly. Collaboration between governments and with colleges, service providers, employers, and students 8. E  xpand streams of the Ontario Immigrant Nominee will be essential for successful implementation. Program to provide more opportunities for qualified college graduates to become permanent residents. FUNDING use this as an opportunity to support regionalization objectives. (Lead: Ontario government) 1. Implement the Auditor General of Ontario’s recommendation to diversify public college PARTNERSHIPS revenue streams, and the Blue-Ribbon Panel’s recommendations to increase per-student grants, 9. Develop a plan for the orderly wind-down of allow incremental increases for domestic tuition partnerships in which a private college delivers fees, and increase student financial support. (Lead: curriculum on behalf of a public college. Build in Ontario government) strategies to mitigate harm to current students and colleges. (Lead: Ontario government and public 2. Allocate a portion of international student tuition colleges) fees to adapt and enhance college services to address the needs of international students. (Lead: 10. Train and monitor overseas recruiters from a Ontario public colleges) variety of countries and cut ties with those who have provided false, misleading, or inadequate 3. Provide sufficient levels of federal and Ontario information to prospective international students. funding for settlement services that international (Lead: Ontario public colleges) students can access pre-arrival, on campus, and in the community. The service and funding model DATA should be developed in collaboration with colleges, students, and the settlement sector. (Lead: federal 11. P  ublicly report domestic and international student and Ontario governments) outcome indicators for each public college, including student satisfaction rates. (Lead: Ontario JOINT PLANNING government and public colleges) 4. Consult on and table levels for international student 12. E  mbed regular evaluations of the International arrivals as part of the annual immigration levels Student Program into the Canada-Ontario determination exercise. Base multi-year levels Immigration Agreement. (Lead: federal and Ontario on college and university capacity, labour market governments) needs, and regionalization objectives. (Lead: federal and provincial governments) 5. Ensure strong provincial involvement in developing the framework for recognized institutions. The framework should include a rigorous monitoring mechanism. (Lead: federal and provincial governments) PAGE 9 POLICY BRIEF ABOUT THE AUTHORS Naomi Alboim is Senior Policy Fellow with the Canada Excellence Research Chair in Migration and Integration program at Toronto Metropolitan University. She is a former Ontario Deputy Minister with responsibility for immigration and labour market issues. Karen Cohl is a consultant specializing in access to justice and immigration policy issues. As a former Ontario Assistant Deputy Minister, she was responsible for immigration and settlement policy and programs. Marshia Akbar is Research Area Lead on Labour Migration with the Canada Excellence Research Chair in Migration and Integration program at Toronto Metropolitan University. Her research examines migration policies and the social and economic integration of migrants in Canada. Canada Excellence Research Chair in Migration & Integration