UPEI hikes tuition by 6.5% for Canadians, 7.5% for international students this fall
University cites inflation costs and falling international enrolment rate as key pressures
The University of Prince Edward Island is increasing tuition fees in the face of falling international enrolments, with the hike being more significant than last year's for both domestic and international students.
UPEI's board of governors approved a $202.9-million operating budget for the 2025–2026 fiscal year on Tuesday, with spending up about 11 per cent compared to the last budget.
To make the numbers work, the university is raising tuition fees by 6.5 per cent for Canadian students and 7.5 per cent for international students, starting in the fall semester. Last year, the increase was five per cent across the board for all students.
The Charlottetown-based university is pointing to a reduction in international students as one of its major financial challenges. First-year international enrolments fell by roughly 50 per cent in 2024–25, costing the institution about $3 million. That trend is expected to continue in 2025–26, with an additional drop of $3 million projected.
Tim Walker, UPEI's vice-president of administration and finance, said declining international enrolments and rising costs due to inflation contributed to the decision to raise tuition.
"We went to our government partners, who've been very generous, but they are also subject to financial constraint. We looked at all kinds of cost-containment measures. We were successful in containing a lot of costs and bringing down that normal inflation, but there was still a gap," Walker told CBC News.
"So, we had to look at the student tuitions with a fresh eye."
Walker said that for an average undergraduate student taking 10 courses, the tuition increase will amount to about $460.
The university's student union has money set aside in an emergency fund for students who need help coping with the already high cost of getting a post-secondary education.
That means maybe skipping some meals or working extra hours and missing classes.— Luciana Quiroa Paredes, incoming UPEI Student Union president
Luciana Quiroa Paredes, the union's incoming president, said the tuition increase will only add to the burden of those who are already struggling.
"For some students that we've talked to, that means maybe skipping some meals or working extra hours and missing classes," she said.
"On top of the housing crisis, food insecurity, mental health challenges and so many others… we're doing everything in our capacity to support all students."
Financial pressures seen across the country
Gabriel Miller, president and CEO of Universities Canada, said UPEI is not alone in facing a money crunch.
Many universities across the country are under growing financial pressure due to two key factors, one of which is declining government investment over the past 10 years.
"For more than a decade, governments in Canada, both federally and provincially, simply haven't been holding up their end of the bargain when it comes to helping students get a university education," Miller said.
To fill that funding gap, universities have been relying on recruiting international students, who bring in more revenue per person. But recent federal reductions to the number of international student permits have created significant budgetary challenges for institutions across Canada.
"Both of these factors now have caused a growing financial crisis on campus," Miller said.
And so institutions are being forced to make difficult decisions, including raising tuition fees, to reduce deficits while trying to protect the quality of education.
Looking ahead, Miller said he hopes Ottawa will fix the immigration system and attract top international talent again — something he said would boost the economy, create jobs and support institutions financially. He also called for stronger provincial investment in post-secondary education.
"We need serious, sustained commitments for provinces to make sure that their universities have sustained funding to complement what students and their families are investing themselves."
No layoffs or program cuts at UPEI
Despite the financial strain, Walker said the university has no plans to lay off staff or shut down academic programs, as Prince Edward Island's other major post-secondary did recently. Holland College said it had no choice given an 83 per cent decrease in its foreign enrolment.
But Walker did say the Charlottetown-based university can conduct a "curriculum cohesion review," which involves strategically examining courses, including low-enrolment ones, and possibly redeploying academic resources.
Walker said students from Prince Edward Island can also get support through the George Coles Bursary, which increased from $3,200 to $3,500 this year, an amount he said outpaces the amount of the tuition hike.
"So essentially, two-thirds of that impact that we are actually putting into our fee is going to be recouped by the increase in the George Coles Bursary," Walker said.
For international students, Walker said about one per cent of revenue UPEI earns from the fee increase, which is estimated at between $175,000 and $200,000, is being earmarked for financial-need bursaries for students facing a financial pinch during the school year.
"We are not really concerned on the competitiveness front. What we are concerned about is how the students perceive it and how they feel about it, and that's why we put these measures in place," Walker said.
'We're losing talent, we are losing skills'
Wasiimah Joomun, executive director of the Canadian Alliance of Student Associations, which includes UPEI's student union, said rising tuition costs will limit access to education and reduce the country's ability to build a diverse and skilled workforce.
"We're losing talent, we are losing skills, and we are losing that return of investment from this population of Canadians," Joomun said.
Mary Feltham, national chairperson of the Canadian Federation of Students, said the news from UPEI is concerning and reflects a broader trend across Canada.
"Education is a right, and it is very important that these public post-secondary educational institutes act as a service rather than a business," Feltham said.
"As such, it is important for them to reach out and advocate for that appropriate funding to come from their provincial governments as well as adequate... funds or policies at a federal level."
With files from Stacey Janzer and Jackie Sharkey