Conestoga College is heading into unprecedented territory as the international student cap takes its toll on the local student population.
According to financial records released yesterday, the school has amassed a surplus of $252 million, up from $106 million last year.
The school admitted over 30,000 international students in 2023 and has been the subject of criticism by the public and the federal government for taking advantage of a broken system.
According to the head of the union that represents faculty and staff, Leopold Koff, the school is a not-for-profit and points to the $252 million surplus as a sign something is wrong.
"We're supposed to be a not-for-profit. I've spoken with senior executives and they said that our income statement at the end of the year should be zero," said Koff.
Although the international student cap will see study visas cut by over 55 per cent at the school, Koff confirms there has already been a 71 per cent decrease in year-over-year in permits approved from January to May at 14,158 to 4,048.
Just in this deduction alone, the school stands to miss out on around $180 million as the average tuition for a two-year program for an international student is around $18,000.
Despite this massive cut in income for the school, Koff noted that with the surplus the school has just amassed, it could still be looking at around another $100 million this upcoming year.
"The decrease in visas will now allow the school and the higher-ups to evaluate the situation they're in and make the programs and education the best we can for the students we are getting," he said.
Currently, there is no indication that any programs have been cut or staff let go due to the international student cap.
With Koff heading the union for faculty, the push is on for every open position to be filled. The school is actively looking for more full-time professors.
The financial records show a massive increase in tuition fees collected by the college with a total of $682 million in 2024, up $286 million from the year before.
Total revenue almost topped $1 billion at $948 million, up from $601 million in 2023.
The college attributes this massive growth to the increase in international students, but claims this was a "one-time occurrence."
"Conestoga is ending the financial year with a one-time surplus of $251 million, which can be attributed to an increase in our international student population," said the college in an email to CambridgeToday.
"We are proud to be a destination school for thousands of students eager to train in industry-relevant jobs, including healthcare, skilled trades and information technology."
Conestoga estimates that Ontario colleges will see more than $1.4 billion in reduced revenue each year as a result of the federal capping of international enrolments.
"This will have an impact on Conestoga in terms of its financial planning, operational capabilities and ability to sustain current levels of growth and investment," the college said.
Koff welcomes the student cap and noted the increase in student numbers has put a strain on staff, adding instructors are having difficulty teaching some students, if they even show up to class.
"With some of the students coming in, it doesn't seem like they were properly vetted and have a very tough time with English reading and writing comprehension," he said. "This is an issue for a number of reasons with the main one being the quality of the programs that are being given to these kids."
Even if the school itself is to lose money, Koff doesn't think that overloading classrooms and stressing out the local economy is the way to do it.
"This was a kind of stress test for the college and it obviously can't handle this kind of intake," he said. "I hope they really take this time to reevaluate and look at what kind of business they want to run."
In the statement from Conestoga, the college said it is important to remember that the federal government approved all international student visas and Conestoga has always followed the direction of the federal and provincial governments regarding recruitment and admission of international students.
It noted that with the surplus, the college plans to invest in its campuses and continue expanding programs.
One criticism the college has faced is the lack of student housing. While the school said it's committed to building new housing around its campuses, it is still over 25,000 units short of meeting the target to house 30,000 students brought in last year.
The school also runs a guaranteed housing program for students in Waterloo and Brantford that will get first-year students in a room for as little as $500 a month.
"If the school has $252 million in a surplus, I would fully support them building more student housing than expanding the school," Koff said.
