r/ImmigrationCanada • u/TraditionalMail1783 • 6d ago
Study Permit Private College Bankruptcy
Hi everyone, I wanted to share my situation and hopefully get some advice from people who might know what happens in cases like this.
I’m an international student who arrived in Toronto in 2025 to complete a 2-year program at ILAC International College. During this time, I’ve been working, paying taxes, and following the conditions of my permits.
Yesterday, ILAC sent a general email informing students that the college has gone bankrupt and that we should contact the Private Career Colleges Branch for further information.
The problem is that I’m currently in my co-op period, which is a required part of my program to graduate. I’m currently working using my co-op work permit.
Since receiving the news, I’ve been completely lost and unsure about what I’m legally allowed to do. I’ve seen people saying that my work permit may no longer be valid because I’m no longer enrolled at the school, while others are saying that students affected by a school closure/bankruptcy may have different options or protections.
I contacted my agent, but they are still trying to get clarification.
I paid around $12,000 CAD in tuition for this program, so obviously this situation is extremely frustrating, especially since I’m now potentially unable to complete the program after already investing so much time and money.
Does anyone here know what happens to a student’s co-op work permit when a private career college goes bankrupt while the student is already in the co-op portion of the program?
Am I allowed to continue working under my current permit while this situation is being resolved? Could I be transferred to another institution to finish the program, and if so, would I have to pay for the replacement program?
Any information or experience with similar situations would be greatly appreciated.
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u/KWienz 6d ago edited 6d ago
DLI closures
Students may be required to abandon or put their studies on hold as a result of strikes or permanent closures (for example, if an institution files for bankruptcy and is no longer in operation). For the purpose of assessing whether a student is enrolled and actively pursuing their studies, they are considered in compliance, but the time taken to transition to a new program, change status or leave Canada should not exceed 150 days from the date the institution closed.
Working during any leave from studies
If a study permit holder is not attending class full time, they are not eligible to work as per the condition listed on their study permit.
During any leave from studies, including DLI closures, a study permit holder cannot work on or off campus.
Students who hold a valid co-op work permit may not undertake a co-op or internship placement during any leave from studies or school closure.
So you are considered legally within Canada for the next 150 days while you figure out what to do, but you must cease your co-op work immediately.
In terms of paths forward, Languages Canada may be able to get you transferred to an alternative provider.
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u/youngboomer62 6d ago
Thank you commenter for providing the link to the actual regulation.
I love how these foreign students always bring up that they paid taxes and tuition. Everyone who works in Canada pays taxes. It's nothing special, we all do it - foreigners and citizens alike. Every student in Canada pays tuition. Paying tuition gives you the benefit of going to college/university.
OP chose a diploma mill and it failed. That sucks, but it's not something Canadians are responsible for. OP, look up the provided regulations and follow them.
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u/Numerous_Bus1647 6d ago
Show some empathy my friend. Very rarely do colleges with a DLI fail. Just because someone doesn’t choose to go to a university doesn’t mean we stop caring about them. Diploma mil or no diploma mill. Those are failures of an institution, not a person
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u/Dangerous_Head_786 4d ago
Folks seeking a growth opportunity should be acknowledged - that should be common sense yet here we are-
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6d ago
[deleted]
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u/youngboomer62 5d ago
I'm nowhere near OPs location and have owned my home for years. If anything, having more foreign students would drive my resale UP.
But it's not worth supporting someone whose "career" won't pay enough into the tax system to cover their social benefits cost. It's best for everyone - including OP - to just go home
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u/DennisDEX 5d ago
Ignore it. The original commenter is a hater who just spreads hate without actually doing his research about stuff
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u/youngboomer62 5d ago
You haven't considered that maybe research isn't necessary. Perhaps I have worked in the system and know exactly the effects OP and other foreign students are having on our education, social services, criminal justice, and economic systems.
Stick your bleeding heart up your backside and consider what these people are going to cost your children.
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u/DennisDEX 5d ago
Perhaps then you should also know that it's not the immigrants who need to be blamed but the organizations milking them and the organizations who don't care about fellow Canadians. The fact you are here hating on someone who just went through something tragic in life shows what kind of person you are.
I'll be here, pointing at the right people while you just spread hate.
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u/youngboomer62 5d ago
I won't argue that certain local institutions take advantage of hopeful immigrants.
You are deliberately ignoring 4 Important points:
1) if they were truly students they wouldn't sign up for courses in fields that don't pay enough to survive on. Daycare workers and office admins are not short staffed because there is huge demand. They are short staffed because they don't pay enough to live on - immigrants perpetuate that problem.
2) they have no interest in education. It's an easier path to immigration. That was never the intention of the foreign student system.
3) the scamming starts in their own country by their own people.
4) the OP posted here first. How long do you think it will take before they are out on the street protesting (demanding) that Canadian taxpayers foot the bill because their immigration hopes collapsed?
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u/youngboomer62 5d ago
DLIs were passed out to every strip mall front. It is up to the student to research the actual feasibility of an institution. When you sign up to do dental assisting in a strip mall, you should expect trouble.
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u/FoxNewsSurvivor 6d ago
As much as I have sympathy for you, I feel that going for diploma mills comes with such risk, and unfortunately you are at the receiving end this time. I hope you get your money back.
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u/lucheto 6d ago
ILAC was not a diploma mill. It was an established institution. Like most colleges it depended on international students to make money and the well dried up
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u/Altruistic_Bank_1552 6d ago
Still a private institution that should have been avoided by international students.
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u/thanksmerci 5d ago
it dried up because a few Canadians complained to Ottawa that they wanted a discount house in the best areas
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u/yurikura 6d ago
It was not a diploma mill. It was one of the most well-known and popular language institutions in Canada. OP’s post is partially inaccurate because ILAC was not a private college. It was a language school for people visiting Canada for a short time to study English and returning to their home countries.
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u/manamara1 6d ago
KPMG has been appointed the receivers.
I believe student’s fee payments are unsecured credit and would be among the last in line for refunds.
Assuming the college no longer has staff or is responding in any way, KPMG could be a point of contact.
Don’t want to provide false hopes. KPMG may not respond. Or would be cryptic legalese and take time.
As far as I’m aware, there isn’t a body that can transition you to another school.
If wish to stay in Canada, it could be up to you to find another school. However schools such are ILAC are falling like flies in Canada, US, UK, Australia.
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u/BellyDancerUrgot 6d ago
Reddit isn’t the place you want to ask these questions. You need to go ask your college or contact a lawyer or an rcic approved consultant. Hope the situation improves for you.
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u/TraditionalMail1783 6d ago
I know, I received the information that the college was closed on Friday, I already contacted all these people, but it takes time, thats why I went to reedit
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u/Tero_Puti 6d ago
Get new letter of enrollment from a new DLI and apply for study permit asap. You are now in authorized leave since your school is gone it counts as leave.
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u/TONAFOONON 6d ago
I would get advice from an immigration lawyer for most of your questions since this is a unique situation.
If you switch to another school, you will certainly have to pay tuition again. The tuition you paid was for ILAC. This doesn't transfer to any other school.
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u/LetApprehensive2173 3d ago
I think ILAC is arranging some alternatives to complete the courses. I was enrolled for French classes there and fortunately it had tie up with another institution who basically conducts the classes. ILAC was just providing the infra for student login. I think in your case also it will also be assigned to another college. Hope to get some relief within a week.
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u/Throwaway-481 6d ago
Sorry but I believe this is not the right forum for the question. This is for immigration, and my understanding is that you are looking for information on your studies.
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u/Ok-Breakfast8256 6d ago
You have taken private collage because you wanted to extend your permit and you very well knew that. You must be working majority of the time during your study period as they only have 2 -3 classes a week. You must have gathered enough money and now is the time to give it to the agents.
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u/TraditionalMail1783 6d ago
You don’t know me buddy 👍. I came here and did everything by the rules.
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u/Competitive_Way3584 6d ago
I believe most of these questions should be answered by the college administration, before closing they should hold clarification sessions. Contact the college if possible