A grim outlook for Ontario colleges as Fanshawe adds to the more than 50 programs suspended

In a media release (March 12, 2026), Fanshawe College announced that it is “…suspending nine more programs as part of an ongoing review of program health and viability that considers enrolment trends, financial sustainability and labour market needs.

These suspensions, which follow 10 programs suspended late last year and the 40 programs that were announced last spring, are part of broader efforts to eliminate a growing deficit and restore financial stability. The latest suspensions will be implemented for fall 2026.”

Among the most impactful changes are those recently reported by the Ontario government to OSAP (Ontario Student Assistance Program). The changes will mean a complete flip of the current program that allows up to 85 per cent of student financial aid through grants to 25 per cent, with the remainder through student loans that will saddle them with even more debt upon graduation.

The Ontario government responded by announcing an additional $6.4 billion over four years and an end to its tuition freeze of 2018. The Ontario government reportedly however, has had the lowest student funding of any other province and about half of the Canadian average over the last 10 years.

In its recent release, Fanshawe College Susan Cluett, Fanshawe’s senior vice president, academic, says that, “All students currently enrolled in affected programs will have the opportunity to finish their program, receiving the same level of excellence and support they expect from Fanshawe.  Wherever possible, applicants to these programs will be offered alternatives.”  

In the Fall of 2025, more than 800 Fanshawe support staff went on strike, with the focus on job security, staffing cuts, provincial funding and Federal cuts to international student numbers.

In a recent analysis by Kunal Chaudhary, he points out that,  “At Ontario’s colleges, 10,000 faculty and staff have been laid off or are sitting on the chopping block; meanwhile, 14 universities are facing budget deficits totalling $400 million. A flurry of restructuring to reduce costs has seen untold departments consolidated and programs slashed.”

International students had become an indispensable part of college and university budgets and, according to the Council of Ontario Universities, international students were being charged three times as much as domestic students. International student tuitions made up seven percent of Ontario universities’ operating revenue in 2010 and, by 2021, would make up 28 per cent.  Since applying a cap on international students at the beginning of 2024, the Federal government has been reducing the number of applicants each year, with Ontario also having to lower the numbers at its institutions.

Figures released in December (2025) show that the number of international students that Ontario can admit in 2026 will drop by 42 per cent over last year. The result? Lost international student revenue, which accounts for about one-third of an institution’s total income to subsidize government underfunding.

The Council of Ontario Universities stated that, “Ontario’s universities are taking on the costs to educate at least 28,000 domestic students without provincial funding.”

The province’s contributions to the post-secondary sector have also failed to keep up with inflation. This means that even this insufficient funding is worth less now than it was a few years ago. Adjusting for inflation, (source CCPA) universities received $670 million less in 2023 than they did in 2018. For colleges, inflation has meant a loss of just over $350 million.

In a post by Ryan Romard, Canadian Centre for Policy Alternatives, (CCPA) he says that, “The Ontario Government shows up late and brings little to post-secondary education.  Since Ottawa announced caps on international students two years ago, the provincial government has done very little to prevent the collapse of education institutions that, for too long, have relied on international tuition fees to balance their books.”

The media release by Fanshawe says that “… the College expects a $26.5-million deficit for the current school year. Next year’s deficit is projected at $50.6 million and in 2027-28 at $54.1 million. The deficit is due in part to a continued decline in international enrolments with overall full-time enrolment expected to drop by 18 per cent for the 2026/27 academic year.”

“While the Government of Ontario’s recently announced $6.4 billion in funding for the post-secondary sector, recognizing the important role colleges play in supporting Ontario’s workforce and economy, difficult decisions are still required to ensure long-term financial sustainability,” says Cluett.

“Even with this important investment we are unable to maintain programs that operate at a significant deficit or are no longer aligned with student and labour market needs,” she adds. “We understand the impact this decision will have on those connected to these programs. We are focused on supporting impacted students and employees and will engage with them directly to ensure they receive the support and resources needed in the coming weeks and months.”

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