Following the closures of EC English and ILAC—Who is really paying the cost for “free” or “budget” study abroad programs?
In September 2026, EC English, which operated language schools around the world including in Canada, announced that it would be ending operations across 25 schools in 7 countries.
Furthermore, yesterday (September 18), it was announced that ILAC in Canada had also filed for bankruptcy protection and ceased operations.
Seeing this news, as someone who has been involved in the study abroad industry for a long time, I have had many thoughts.
First and foremost, I am thinking of those who were already studying abroad, those who were scheduled to depart, and their families, all of whom are facing great anxiety due to these closures.
If you are currently planning to study abroad or are already studying abroad in connection with EC English or ILAC, please first consult with your study abroad agent or the point of contact currently supporting your program.
In fact, regarding the EC English closure, Languages Canada has been supporting the transition to alternative schools, and as of September 18, it was announced that 444 students had secured placements.
In the UK, English UK has also provided support, stating that alternative courses have been offered to 317 out of the 328 affected students.
Even if a school suddenly closes, the fact that systems are in place to support students should hopefully provide some measure of relief.
What I cannot confirm regarding these closures
On the other hand, regarding the closures of EC English and ILAC,
“Why were these schools unable to continue operating?”
“Where did the problems lie?”
I cannot definitively state the answers to these questions based solely on information available from the outside.
EC English has explained that, amidst a difficult financial and market environment, they were unable to secure additional investment and could not obtain sufficient funds to continue operations.
ILAC has also explained that significant changes in the education system over the past three years led to financial difficulties, making it impossible to secure the funds necessary to continue operations.
I believe that, at this stage, it is not appropriate to speculate on anything beyond that from the outside.
However, this event has caused me to reflect once again.
That is, “What exactly is the cost of studying abroad?”.
The environment surrounding language education in Canada is also changing significantly.
This recent event can be viewed as an issue specific to individual schools.
On the other hand, it is also a fact that the environment surrounding language education in Canada itself is undergoing major changes.
In a 2025 survey published by Languages Canada in August 2026, which covered 151 programs, the number of international students decreased by 13% year-on-year, and student weeks decreased by 19%.
The background is said to include various factors such as changes in Canada’s immigration policy and study permit system, uncertainty surrounding visas, competition with other countries, and economic conditions.
It has been reported that some educational institutions have downsized their operations, and some schools have even closed.
In other words, the Canadian study abroad industry itself is currently in the midst of major change.
Even if it is free, costs are still being incurred.
What I particularly want people to think about this time is the mechanism of “free study abroad agencies.”
Some study abroad agencies operate by receiving commissions paid by schools and the like, rather than charging support fees to international students or their families.
This is by no means a unique mechanism.
For example, KPU (Kwantlen Polytechnic University) in Canada also explains that there are cases where study abroad agencies operate by receiving commissions from educational institutions without charging fees to students.
Also, Vanier Language School in Canada clearly states its commissions to agents.
In other words,
the fact that “international students do not pay money to the agency”
and
the fact that “no costs are incurred to arrange and support that study abroad”
are not the same thing.
There are people who provide study abroad consultations, people who research schools, people who coordinate applications, and people who provide support on-site.
As long as people are involved, some kind of cost is incurred there.
Even if it is free, someone is bearing the cost.
So, I would like you to think about this for a moment.
“Who is bearing that cost?”
Ask yourself that.
“Free” or “cheap” is not inherently bad
Of course, I am not saying that free services are bad.
It does not mean that low-cost study abroad programs are bad either.
Lower costs for the user are a significant benefit.
If an agency is operated by commissions paid by schools, that is also a legitimate business model.
What is important is,
not to assume “it’s free so it’s safe” or “it’s cheap so it’s bad,” but to make your choice after understanding how the system works.
And, a higher price does not necessarily guarantee a good study abroad experience.
What concerns me is what happens when price becomes the sole focus of competition.
Will the strain of price competition eventually take its toll?
Keeping study abroad costs as low as possible.
This is something that users naturally want to consider.
However, if various costs related to studying abroad are continuously cut, someone somewhere must bear the burden.
School operating expenses.
Staff personnel costs.
On-site support.
Coordinating host families.
Assisting international students.
Consultations and arrangements by agents.
People are involved in each of these things.
Of course, there are parts that can be made more efficient through corporate efforts.
However, if costs continue to be borne by someone, there is a possibility that the burden will eventually fall on someone else.
Will that be a burden on the staff?
Will it be the support system?
Will it be the school’s educational environment?
Or will it be somewhere else?
That will likely differ depending on each business operator.
I do not believe that this price competition was the cause of the closures of EC English and ILAC this time.
That needs to be considered separately from the facts of these closures.
However, seeing this news made me think about this again.
In order to continue providing study abroad services in a healthy manner for a long time, isn’t it also necessary to consider whether we are pushing ourselves too hard somewhere?
That is what I think.
For the study abroad industry to continue in a healthy way
I believe that the job of study abroad is not simply a ‘job of introducing schools’.
For the person studying abroad, it is not something they can experience many times in their life.
Especially for junior high and high school students going abroad for the first time, there are many things they do not understand, and they need the support of various people from before they depart until they return home.
That is precisely why,
study abroad agencies must also conduct thorough research and provide solid support.
Schools must also receive the necessary fees and operate soundly.
Appropriate compensation must also be paid to the people involved on the ground.
And, international students must have a good experience there.
I believe that this is one form of a study abroad industry that can last for a long time.
Of course, this is not to say that everything should just be provided at a high price.
What is important is that necessary costs are spent where they are needed, and as a result, proper value is returned to the international students I believe.
If it is a study abroad program for junior high or high school students, I want you to think about it even more
Especially in the case of junior high and high school students, I would like you to be a little cautious about the idea of ‘comparing only by price’.
If it is a study abroad program for adults, there are situations where they can make their own judgments, consult with the school themselves, and solve problems on their own.
However, for junior high and high school students going abroad for the first time, that is not always the case.
From boarding the plane, immigration, homestay, school life, illness, to consulting when in trouble.
Even support that you might not feel is necessary if no problems occur can have great significance when a problem actually arises.
That is precisely why,
‘how much it costs’
not only,
‘what is being supported by those fees’
I want you to also pay attention to.
What kind of study abroad do we want to choose?
Seeing the news about EC English and ILAC this time,
I don’t think it’s quite right to simply conclude that
“language schools are dangerous,”
“free agents are dangerous,” or
“cheap study abroad programs are dangerous.”
There are services that operate with proper systems, even if they are free or low-cost.
On the other hand, just because the fees are high doesn’t mean you can rest easy.
That is precisely why, rather than looking only at the price, it is important to consider things like:
“What kind of system is this study abroad program built on?”
“Who will support me, and to what extent?”
“Where is that money being spent?”
Isn’t it important to think about these things as well?
This news is by no means irrelevant to those considering studying abroad.
At the same time, I believe it serves as an opportunity to think about the future of studying abroad.
What kind of study abroad experience do we want to choose?
Not because it is cheap, and not because it is expensive.
What kind of experience will the individual have, and what will they gain from that study abroad program?
And, is the system supporting that experience one that can continue sustainably into the future?
I hope this news serves as a catalyst for you to think about these things at least once.
I have been involved in the study abroad industry for over 23 years, and I believe that studying abroad is something a little different from just “buying a product.”
A young person goes abroad for the first time, meets people there, feels bewildered, thinks for themselves, and returns home.
That experience can sometimes prove valuable at some point in their later life.
That is precisely why I want this industry to be one where each and every study abroad experience is sustainable, sincere, and long-lasting.
Seeing these recent events, I felt that way once again.
