Up to $ 3.4 billion in less revenue for Canadian universities

Canadian universities could lose up to $ 3.4 billion in the 2020-2021 academic year due to the pandemic, Statistics Canada has revealed.

According to a report published on October 8 by Statistics Canada, an examination of different scenarios showed that the loss of universities would be between $ 377 million and $ 3.4 billion, or 0.8% to 7, 5% of their income.

For the organization, this decrease in funding is mainly explained by “the uncertainty surrounding the registration of international students”.

Tuition fees are one of the main sources of income for universities and accounted for 29.4% of funding during the 2018-2019 school year.

And the majority of these tuition fees are funded by international students: in 2017-2018, they paid nearly 40% of these fees.

However, according to study permit data collected from Immigration, Refugees and Citizenship Canada, the number of study permits issued fell 58% between June and August 2020 from the previous year.

And of these study permits given to foreign students, nearly a third will no longer be valid by January 2021.

Canadian students are also less present on university benches this fall. According to the Labor Force Survey, nearly 20% of students aged 17 to 24 enrolled full-time in March said they would not be returning to university this term.

According to Statistics Canada, some universities have announced plans to reduce their operating costs to deal with this loss of income.


About Victoria Smith

Victoria Smith who hails from Toronto, Canada currently runs this news portofolio who completed Masters in Political science from University of Toronto. She started her career with BBC then relocated to TorontoStar as senior political reporter. She is caring and hardworking.

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