SUMMARY FROM THE REPORT
AUTHOR:
Salma Hassanein
New Canadian immigration policies aimed at increasing international student enrollment that came into effect on June 1st, 2014 will enhance the competitiveness of Canadian universities in the international student market. This is credit positive for Canadian universities as international student pay higher tuition fees, boosting universities’ revenues.
- Government policies will support growth in international student enrollment. A relaxation of work restrictions for overseas students that came into force on June 1st will reinforce Canada’s demonstrated success in attracting students from around the globe. International students now comprise a meaningful proportion of enrollment at many of Moody’s rated universities.
- Universities benefit from additional net tuition revenue from international students. International students are liable for higher tuition fees than domestic students, paying 3.4 times more on average for undergraduate programs and 2.3 times more fro graduate programs. As other sources of revenue are squeezed, international enrollment offers an area for revenue growth.
- Financial benefits will be partly offset by mounting competition and required investment. Although policy changes will help attract more international students to Canadian universities, the financial benefits may not be as significant as the government hopes. Universities will need to invest in new infrastructure and services to accommodate this growing student population.
