LaSalle College: $48M debt, term suspended, 3,000 students waiting

Immigration

Around 3,000 students and 421 employees at LaSalle College have spent a week waiting to learn whether their institution will survive. The term, due to begin on 27 August, has been suspended indefinitely. A decisive hearing is set for 3 September.

For the many international students enrolled at the Montreal and Laval campuses, this is not only an academic crisis. It is an immigration status hanging on a negotiation.

What happened

On 24 August, three days before the start of term, LaSalle College filed for protection under the Companies’ Creditors Arrangement Act (CCAA) before the Superior Court. The private bilingual institution obtained a reprieve to negotiate with Quebec.

The total debt is roughly $47.8 million:

• $29.9 million in penalties for exceeding the cap on enrolment in its English-language programs. The overage was 716 students in 2023-24 (a fine of about $8.8 million), then 1,066 students in 2024-25 (about $21.1 million).
• $17.9 million in overpaid subsidies for 2025-26, which the college must repay.

The penalty flows from Bill 96 and the ceiling imposed on enrolment in English-language programs at subsidised private colleges.

The mobilisation

On the eve of the cancelled start of term, the Association générale des étudiants du Collège LaSalle (AGEL) held a demonstration at the Montreal campus calling on the Premier to intervene.

Unions followed. The CSN and FNEEQ-CSN criticised the entrenchment of the legal standoff between management and government; the FTQ and SEPB also called on Quebec to act. A petition is circulating to save the jobs and the students’ programs.

Worth clarifying: this is not a strike. Staff are not engaged in concerted work stoppage — the college itself suspended the term for lack of an agreement.

What it means if you are an international student

This is where it gets delicate, and it deserves clarity without alarm.

A study permit is tied to a designated learning institution (DLI). If an institution ceases operations, students do not lose status overnight, but they do have to act: IRCC’s general rule is that a study permit holder must be actively enrolled and progressing in their program.

If you are affected:

• Do not leave Canada without advice. Leaving while your academic situation is uncertain complicates re-entry, especially if your visa or eTA is close to expiry.
• Keep everything in writing. Emails from the college, the suspension notice, proof of tuition paid, transcripts. If a transfer becomes necessary, those documents are your file.
• Check your dates. Expiry of your study permit, your CAQ, your visa or eTA. Those dates — not the news cycle — determine how urgent your situation is.
• Understand transfers to another DLI before committing elsewhere. Changing institution has consequences for the study permit, and sometimes for the CAQ.
• Do not act on a rumour from a WhatsApp group. The 3 September hearing could change everything, in either direction.

We are following this and will update this article after 3 September.

A wider lesson

Beyond LaSalle, this is a reminder of something we repeat in consultations: choosing an institution is an immigration decision, not only an academic one.

Before enrolling anywhere, it is worth confirming that the institution is on the DLI list, that the program leads to a post-graduation work permit if that is your goal, and — rarely considered — that the institution is financially sound.