Vancouver Island University has faced a "drastic drop" in new student enrolment following national changes to the international student study permit program.

The university reported experiencing a drop of 60 per cent for new international enrolled graduate students, a 48-per cent decrease in new international enrolled undergrad and developmental program students, as well as a seven-per cent decline in international continuing students, adding up to 384 fewer international students.

"It could be several more years until the university returns to a balanced-budget position due to current geo-political issues and changes to the international student study and post-graduate work permit programs impacting our enrolment," noted a university  from November.

Earlier this year, Immigration, Refugees and Citizenship Canada made changes to the international student study permit program, which included a 10-per cent reduction from the 2024 target of 485,000 new study permits issued, as part of a wider plan to decrease the number of temporary residents to five per cent of the total population over the next three years. Other changes included requiring international students to be approved for a new study permit before changing learning institutions. 

VIU was already facing financial difficulties, resulting in a deficit mitigation plan that led to the , closing the high school and 

Last fall, VIU committed to reduce expenditures by 10 per cent, or $18 million, over three years and achieve a balanced budget by spring of 2026.

Last month's report noted that while a balanced budget may not be possible by 2026, the university remains committed to "fully achieving" the deficit mitigation plan of reducing university expenditures by $18 million by the end of 2025-26 fiscal year.

In a statement, Jenn McGarrigle, VIU's external communications manager, told the News Bulletin that recent changes to the international student study and post-graduate work permits have led many institutions to reassess their budgets and operational plans. 

"Our students remain at the heart of our decision-making, and we are focused on supporting them through these changes," she said. "VIU is actively working with the ministry of post-secondary education and future skills to implement our deficit mitigation plan, which will support a return to balanced budgets in this changing landscape in higher education."

The final version of the 2025-26 operating budget plan report is expected to be released publicly after board approval in March.

The budget advisory council recommended a two-per cent general tuition fee increase for domestic tuition across all programs and an overall tuition fee increase for international students using an average consumer price index.