The Government of Canada’s decision to reduce immigration, including international student intake, for the next three years is already stirring controversy. Framed as a response to rising housing prices, and the proliferation of “diploma mill schools,” this policy shift has far-reaching consequences for institutions like UBC, students, and the broader economy.
Canada experienced record population growth between 2022 and 2024, largely driven by international students and temporary workers.1 These groups were essential in meeting post-pandemic labour shortages, with the government even waiving the 20-hour work limit for international students to fill employment gaps. This high immigration helped Canada avoid a recession, but it also exacerbated the housing crisis, with skyrocketing rent costs and insufficient infrastructure.
In a dramatic reversal, the liberal government now plans to reduce permanent immigrant intake by 20% and cap international student numbers.1 The goal? To provide breathing room for the housing market to stabilize. However, critics question how Canada will reconcile this pause with its chronic labour shortages, particularly in sectors such as agriculture and construction, which are heavily reliant on temporary workers.
International students have been vital to Canada’s economy and educational institutions. At UBC, they comprise around 30% of the student body and pay tuition fees far higher than their domestic counterparts. These higher fees – unrestricted by the provincial Tuition Limit Policy – help fund research, infrastructure, and student services. For the 2025/26 academic year, UBC proposes to raise tuition for continuing international students by 3% and for new ones by 5%, well above the 2% cap for domestic students.2 It is also interesting to note that UBC has abandoned the annual tuition consultation with students, citing the reason as repeated frustrations that don’t add new information.3 This decision is laughable, considering how the lack of appropriate steps lead to consistent frustrations.
While UBC claims to be less affected by the policy shift compared to smaller institutions, financial cracks are beginning to show. As mentioned by the Executive Board in the Annual General Meeting, the Students’ Union Okanagan (SUO) will have a revenue shortfall of around $100,000, leading to budget cuts that will inevitably impact clubs and student initiatives. This is just the beginning of what may be a broader financial recalibration.
The federal government has justified the policy as a crackdown on predatory “diploma mill schools,”4 which exploit international students for profit without providing quality education or clear pathways to employment. While addressing this issue is critical, institutions like UBC, which have rigorous academic standards, are also feeling the effects.
For international students, these challenges are compounded by unchecked tuition hikes. Without the protection of the Tuition Limit Policy, international students are often treated as cash cows, paying up to four times more than domestic students. This creates a precarious situation, especially as housing costs and inflation rise, forcing many students to work multiple jobs while studying. If the government is serious about addressing the plight of international students, a more equitable approach would be to extend tuition caps to this group. This would relieve some financial pressure while maintaining Canada’s appeal as a study destination.
Canada’s reliance on temporary immigrants, including international students, has historically been dictated by economic demand. Yet, reducing their numbers now could backfire. Many sectors, including healthcare, agriculture, and tech, are still grappling with labour shortages. With fewer international students and temporary workers entering the workforce, the labour gap could widen, jeopardizing economic recovery. The contradiction in policy is evident. Canada’s decision to cut immigration while facing chronic labour shortages suggests a lack of long-term planning. Housing supply remains the bottleneck, but reducing immigration without simultaneously accelerating housing construction risks stalling economic growth.
UBC faces a challenging road ahead. While it may weather the immediate financial impact better than smaller institutions, the long-term effects are uncertain. Reduced international enrollment could lead to tighter budgets, higher tuition for domestic students, and cuts to programs. The reported shortfall in the SUO’s revenue is a warning sign of how even minor shifts in policy can ripple through the university ecosystem.
On the positive side, the policy could force UBC to rethink its funding strategies and reliance on international students. Public-private partnerships for housing, greater advocacy for government funding, and more equitable tuition policies are some steps the university could consider.
Canada’s immigration policy changes are a delicate balancing act between addressing housing and ensuring economic stability. For UBC students, faculty, and administrators, this is a moment to reflect on the broader implications of these shifts. As students, we have an opportunity to advocate for fairer policies — ones that don’t pit international students against domestic housing needs or exploit them financially. UBC, too, must step up, ensuring that its commitment to diversity, equity, and academic excellence doesn’t waver in the face of these challenges.
1 Trudeau J. (2024, November 17). Why Canada’s changing its immigration system [Video]. YouTube. https://www.youtube.com/watch?v=vOB7-dbYuCc
2 Tuition Engagement 2025/26 - Student consultations. (2024, October 23). Student Consultations. https://consultations.students.ubc.ca/tuition-engagement-2025-26/
3 Nambiar, R. (2024, April 10). UBC abandons student surveys in tuition consultation process. The Ubyssey. https://ubyssey.ca/news/ubc-abandons-student-surveys-in-tuition-consultation-process/
4 Maimann, K. (2024, January 23). B.C., Ontario vow to crack down on diploma mill schools exploiting international students. CBC. https://www.cbc.ca/news/canada/provinces-cracking-down-on-private-institutions-1.7091194
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