UPEI, like many other post-secondary institutions across Canada, is facing financial pressure due to federal immigration policies that have reduced the number of international study permits issued.
Dr. Tim Walker, UPEI’s Vice-President of Administration and Finance, said the university estimates a loss of about $3 million in revenue because of declining international student enrolment each year. Over four years, that loss is projected to compound to between $12 million and $15 million, depending on how enrolment stabilizes.
“This is the first year where we’ve had to consciously rebase our operating budget to a new revenue reality,” Walker said. “The challenge is not just the loss itself, but the uncertainty it creates when you’re trying to plan programs, staffing, and student services.”
Walker explained that while the federal government allocates provincial attestation letters to provinces, which then distribute them to the post-secondary institutions, the number of letters has not yet been the primary issue for UPEI. Instead, he said Canada’s declining competitiveness as a study destination has had a greater impact. “For decades, Canada was considered the second most attractive destination for international students,” Walker said, citing higher-education industry data. “We’re no longer in that position, and that matters. Students don’t trust that the rules won’t change on them.” Although that sentiment may be true for students whose degrees are already underway, a 2025 study by the Association of International Enrollment Management suggests that Canada remains one of the top countries for higher education for international students.
According to Walker, UPEI’s international enrolment stood at 1620 students in Fall 2025, down from 1878 in Fall 2024. While the reduction affects the overall student population, he noted that the most significant decline is occurring in first-year cohorts. “If you lose 200 to 300 students in first year, that loss rolls forward,” he said. “After four years, you’re looking at a reduction of 1,000 to 1,200 students compared to where you would have been.”
Tuition and student fees make up a significant portion of UPEI’s operating budget. Walker said that on the university’s main campus, tuition and fees account for approximately $52 million of a $125 million operating budget, about 42 per cent.
International students play an outsized role in that revenue. While international students make up 33 per cent of UPEI’s student population, they contribute 56 per cent of tuition and fee revenue, with domestic students accounting for 44 per cent. These figures are based on 2024 records, and more recent data were not available at the time of publication.
Walker emphasized that the financial impact of declining international enrolment affects every part of campus life, from academic programming to student services. “When international enrolment was growing rapidly, the pressure was about how to serve more students,” he said. “Now it’s the opposite problem: how do you maintain services and stability with fewer students and less revenue?”
To mitigate the situation, the university has begun implementing cost-reduction measures and re-evaluating programs to ensure long-term sustainability. Walker said the goal is to stabilize finances first, then pursue strategic growth. “We want to be here for the next 100 years,” he said. “That means being academically and financially sustainable.”
Walker acknowledged that tuition would continue to rise, but said the university has measures in place to support students who are struggling financially. He noted that UPEI directs one per cent of every tuition increase to its international student emergency bursary fund, which helps students facing unexpected financial challenges stay enrolled. The university has also been working to diversify revenue sources and plan for gradual adjustments rather than abrupt cuts, Walker added. The UPEI president’s office was contacted for comment on the issue but was unavailable for an interview before publication.
As federal immigration policies remain in place, Walker said uncertainty will likely continue for post-secondary institutions across the country, particularly those that rely heavily on international tuition. “This isn’t just a UPEI problem,” he said. “It’s a national issue, and the effects will be felt for years.”