CHARLOTTETOWN — The busy halls at the University of Prince Edward Island (UPEI) mask a growing struggle for many students, as pursuing higher education becomes increasingly difficult to afford.
According to Statistics Canada’s latest Consumer Price Index, students in Prince Edward Island experienced the country’s largest tuition increase this school year—rising by 4.9 per cent. That figure is more than double the national average increase of 2.4 per cent. Additionally, P.E.I. recorded the highest annual inflation rate among all Canadian provinces in September, reaching 5.7 per cent.
“Students don’t know if they’re going to be able to pay for education next year. They don’t know if they’re going to continue studying,” said Alissa Sonomura Cyrino, vice-president external of the UPEI Student Union. “There’s a lot of pressure.”
Cyrino noted that domestic students have faced three consecutive years of steep tuition increases, including back-to-back hikes of up to 6.5 per cent. The student union expressed concern that repeated price spikes risk deterring students from low- and middle-income families from pursuing a university degree. For those currently enrolled, the financial strain has severely disrupted the balance between academic performance, work, and personal life, forcing many to take on extra work hours to cover tuition, rent, and groceries.
Declining International Enrolment and University Deficits
In a statement provided to CTV News, Tim Walker, UPEI’s vice-president of administration and finance, explained that the university is operating within a “significantly challenged financial environment.” This situation is driven by declining international student enrolment, ongoing financial uncertainty, constrained revenue streams, and rising operational costs.
Walker acknowledged the burden tuition increases place on students but stated the measures are necessary to keep the university academically and financially sustainable.
Nationwide caps on international student permits introduced by the federal government in 2024 have led to sharp drops in international enrolment across Canada. Institutions in Atlantic Canada have been hit particularly hard. Ava Czapalay, chief executive officer of the Association of Atlantic Universities, reported that international enrolment at member schools has dropped by nearly 48 per cent since federal restrictions were implemented.
“This part of the country needs people… We don’t have a growing population naturally,” Czapalay said. “For this region to flourish and to prosper… we need newcomers to come here and to work here. And international students are, of course, a great way of bringing newcomers to a country and having them put down roots in the communities where they study.”
Calls for Financial Predictability and Federal Support
Universities rely heavily on two primary sources of revenue: provincial government operating grants and student tuition. Because international students typically pay more than double the tuition of domestic students, enrolment drops significantly impact university budgets.
The Association of Atlantic Universities is calling on Ottawa to implement solutions tailored specifically to Atlantic Canada’s unique demographic and labour market needs.
At UPEI, a 3.5 per cent ($1.7-million) increase in provincial operating grants provided helpful support but only offset about half of the school’s projected cost inflation for 2026–27. Despite the recent hikes, Walker noted that UPEI’s tuition rates remain among the lowest in the Maritime region, according to data from the Maritime Provinces Higher Education Commission.
P.E.I.’s Department of Workforce and Advanced Learning stated that the province continues discussions with federal partners and post-secondary institutions, advocating for policies that reflect Atlantic Canada’s demographic requirements. The department added that Island students received over $53 million in combined federal and provincial student financial assistance during the 2025–26 academic year.
To help students manage costs, UPEI’s student union is advocating for tuition predictability rather than unexpected annual spikes. The union wants the university to establish fixed multi-year tuition schedules upon enrolment so students can accurately plan their finances.
