Two Ontario colleges, Loyalist College in Belleville and Northern College in Timmins, are facing severe financial challenges. Consultant reports show Loyalist could lose up to 60 per cent of its revenue by 2030. Northern College may see a 35 per cent drop. The reports were prepared by Deloitte and KPMG for the provincial government. They highlight the reliance of some colleges on international tuition fees to stay financially stable.
Projected deficits
The Deloitte report for Loyalist College projects deficits rising from $28 million to $41 million over five years. Program and staff cuts are included in the plan. Even with savings, the college could face a $30 million shortfall by 2030. Northern College’s KPMG report shows a swing from an $8 million surplus in 2025 to a possible $8 million deficit in 2030. The report recommends major cuts to programs and staff. It also suggests selling or leasing campuses to reduce costs. Northern College may need to close or lease its Kirkland Lake and Moosonee campuses to save over $1 million in operational expenses.
International student enrolment falls
International students made up 60 per cent of Northern College’s full-time enrolment. At Loyalist, 84 per cent of business program students were international. The federal government imposed a cap on study permits in 2024 to manage population growth and housing pressure. Approvals for study permits fell 70 per cent in the first half of 2025. IRCC issued 90,000 fewer permits than in 2024. Many programs lost Post-Graduation Work Permit eligibility. Colleges have responded by cancelling non-degree business diplomas and other programs popular with international students.
Job losses and labour tensions
Nearly 10,000 college staff have lost or are expected to lose jobs. Thousands of support staff went on strike in September 2025. They demanded job security and a three-year freeze on layoffs and campus closures. The College Employer Council called the demands unreasonable, citing financial pressures.
Impact across Ontario
At least 14 Ontario colleges, including Durham, Fanshawe, and Sault College, have undergone similar financial reviews. International tuition had previously helped balance budgets. Northern College’s revenue from international students, nearly $30 million in 2023–24, is projected to drop to $8.6 million by 2027–28. Experts warn that colleges that expanded quickly using international tuition will struggle to operate at current levels.
Long-term challenges
Colleges are now restructuring to survive. Cuts to programs and staff are planned. Campuses may be sold or leased. Experts warn that colleges may not have enough funds to fulfill their government-assigned roles.
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