Hi there. In this education post, I cover the unfortunate case where a school can go bankrupt.
There has been a big recent case in Canada where the International Language Academy of Canada (ILAC) filed for bankruptcy.
ILAC Bankruptcy
There has been new in late September 2026 about the closure of the International Language Academy of Canada (ILAC). ILAC has filed for bankruptcy under the accounting firm KPMG.
“ILAC no longer has the financial resources necessary to continue operating,” read a statement posted to the school’s website, citing “significant regulatory changes affecting the sector.”
ILAC’s collapse comes less than a week after another major international chain, EC English, closed its operations around the world, including three campuses in Canada.
Everest College Shut Down Back In 2015
There was a college shut down that I remember from a while ago. In 2015, Everest College closed its doors suddenly on a Thursday.
More than 3,000 students and staff will be out in the cold this winter after cash-strapped Everest College Canada suddenly closed its doors on Thursday.
The decision to suspend all operations at the vocational school was made by the superintendent of Private Career Colleges, an independent regulator and decision maker. The superintendent suspended Everest because it was deemed to no longer be financially responsible, according to the Ontario government.
The vocational school has about 2,400 students and 630 staff at 14 campuses in Ontario, including locations in North York, Scarborough, Brampton and Mississauga. EC’s primary emphasis is on training students for careers in the business, technology and health care sectors.
An Everest College spokesperson said the closure came as a “surprise” after “weeks and months” of working with the provincial government to deal with its financial issues. He added that school is “disappointed” by the decision.
What Happens To The Students After School Failures?
This is an important question. When a school fails, it affects the students, parents and also the reputation of education. Students who no longer can attend a bankrupt private school would have to continue their studies at a different school, choose a different career path or maybe just find work. Completed courses may or may not be recognized by other colleges or universities. I cannot imagine the amount of paperwork involved with a school bankruptcy.
School closures also affects the students' living situation. A lot of student live in cities where their school is located. If the school closes down, then students could decide to move out of the city as soon as possible. This causes reduced demand in cities that depend on students.
It is unknown if students will get refunds or reimbursements for paid courses that end up not being completed. I can see a lot of angry students when time and money is wasted because the school is suddenly bankrupt. Students get punished due to not much fault of their own. Some people may say that you should not go to a place like Everest College or ILAC. How would young students or parents know if a school is close to bankruptcy?
Thank you for reading.