Moody’s says Canadian universities must be able to raise fees to attract international students

September 5, 2014

Moody’s Investors Service says that Canada’s provincial funding model could have a negative effect on the country’s ability to attract international students. According to Moody’s, controls on tuition increases at the provincial level have made it difficult for universities to raise fees to the level necessary to meet demand for higher education; as a result, “inability to appropriately invest in facilities could become a comparative disadvantage.” Moody’s says that universities may increasingly have to consider private partnerships to better attract international students. The report claims that programs that have raised tuition fees to market levels, such as McGill University’s Desautels Faculty of Management, have actually seen an increase in enrolment. However, not all universities are interested in international students solely as a source of revenue: some seek to achieve the right “mix” of students on campus, said Jennifer Humphries of the Canadian Bureau of International Education (CBIE), while others have in mind the history and traditions of their campuses. Globe and Mail