ILAC Bankruptcy Leaves 1,300 International Students Scrambling for Status and Refunds

In a shock to Canada’s international-education sector, the International Language Academy of Canada (ILAC)—the country’s largest private English-language school—filed for bankruptcy late on September 19. Immigration 2 Canada broke the story in the early hours of September 20, confirming that roughly 1,300 learners across campuses in Toronto and Vancouver are suddenly without classes, transcripts or formal Letters of Acceptance (LOAs). The collapse comes just one week after rival chain EC English shuttered its Canadian operations, raising systemic concerns about oversight of private language schools. Most affected ILAC students hold study permits that require ongoing enrolment to maintain status. Without swift transfers to Designated Learning Institutions (DLIs), many face falling out of status within 90 days, jeopardising their ability to work part-time and, for some, their pathway to the Post-Graduation Work Permit (PGWP). IRCC has not yet issued a blanket facilitation policy. Historically, however, the department has provided grace periods and expedited school-transfer processes when DLIs close. Immigration lawyers are urging students to gather proof of tuition payments and to secure new LOAs immediately so they can file a “change of DLI” request through their online accounts. For employers who rely on part-time international-student labour, especially in hospitality and retail, the disruption could trigger sudden staff shortages during the pre-holiday ramp-up. Host families also risk losing rental income. Meanwhile, provincial regulators in Ontario and British Columbia face renewed pressure to bring private language schools under the same financial-protection rules that cover career colleges. The episode underlines a broader vulnerability: language schools operate on razor-thin margins amid intense post-pandemic competition. As Ottawa moves to cap overall study-permit growth, financially weaker players may exit the market, forcing global-mobility teams to vet education partners more carefully. Contingency planning—ranging from alternative language programmes to employer-designated bridging jobs—will be critical until regulators tighten the sector’s financial safeguards.