According to CTV News, the International Language Academy of Canada (ILAC) has ceased operations and filed for bankruptcy, marking the collapse of one of the country’s largest private English language schools. The Toronto and Vancouver-based academy shuttered its doors on Friday, pointing to mounting financial pressures triggered by major federal policy shifts.
Regulatory Shifts and Financial Collapse at ILAC
The academy, which opened its doors in 1997, cited increased financial challenges over the past three years due to significant regulatory changes affecting the sector, according to a public message posted on the school website. ILAC stated that despite doing everything possible to secure operating resources and maintain high-quality education, the institution no longer has the financial resources necessary to continue operating.
To oversee the wind-down, KPMG has been appointed as insolvency trustee, according to the school’s public notices. While officials have not immediately clarified the exact number of international students impacted by the closure, ILAC reported that it is working alongside regulators to offer student support during the transition.
Federal Permit Caps and Broader Sector Impact
The closure unfolds against a backdrop of sweeping federal policy changes designed to slow international enrollment growth. In 2024, the federal government announced a temporary cap on international student permits aimed at reducing pressures on housing, infrastructure, and services, according to government records.
Earlier this month, Immigration, Refugees and Citizenship Canada (IRCC) stated in an email to CTV News that the international student population has dropped by one-third since the caps took effect. Furthermore, actual arrivals are tracking well below official targets. IRCC data shows that just 22,405 international students arrived during the first six months of 2026, falling far short of the targeted 155,000 for the year.
The contraction in student volumes has rippled across the broader education landscape. Many colleges in Ontario have already suspended programs and laid off staff due to a sharp decline in enrolment, according to files from CTV National News correspondent Kamil Karamali.
Did you know?
IRCC data reveals that international student arrivals for the first half of 2026 reached only 22,405, well below the federal target of 155,000 for the entire year.
Frequently Asked Questions
Why did ILAC shut down?
ILAC cited severe financial challenges over a three-year period driven by significant regulatory changes affecting the language school sector, leaving the academy without the financial resources needed to operate.
Who is handling the bankruptcy proceedings?
According to the school, KPMG has been appointed as the insolvency trustee to manage the bankruptcy process.
How are students being assisted?
ILAC stated that it is working with regulators to ensure affected students receive support through what the school termed a difficult transition.
What broader trends contributed to the closure?
Federal student permit caps implemented in 2024 have caused international student populations to drop by one-third, with 2026 arrivals tracking significantly below government targets.
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