LaSalle College has officially filed for creditor protection in the Quebec Superior Court, leading to the suspension of classes scheduled to commence on August 27. The college sought to address its $48 million debt to the province of Quebec through negotiations, but with no resolution in sight, the decision was made to seek legal protection.
An announcement on the college’s website assured students that the class suspension is temporary, with efforts underway to swiftly resolve the situation and resume academic activities. College President Claude Marchand had previously warned Premier Christine Fréchette of the impending creditor protection move if a resolution was not reached.
The financial challenges faced by LaSalle College stem from penalties totaling $29.9 million for over-enrolling students in English-language programs between 2023 and 2025. Additionally, the government has demanded the repayment of $17.9 million in subsidies for the academic year 2025-26. Marchand criticized the penalties as unjust and unsustainable for the college, emphasizing its non-profit nature and lack of financial capacity to meet such demands.
The college’s dispute with the Quebec government centers on the imposition of enrollment quotas on CEGEPs offering English-language programs without a grace period, affecting LaSalle’s operations. Despite claims of legal admissions within quota limits, penalties were imposed for exceeding enrollments in recent years, leading to the current financial crisis.
LaSalle College has initiated legal action against the government to challenge the penalties, citing unreasonable quotas and seeking a revised debt payment plan. Marchand has requested a more realistic repayment schedule and the appointment of an interlocutor to facilitate the resolution process. The college aims to expand its French-language programs to attract more domestic students and fulfill its obligations while serving the community.
The Quebec government, represented by Finance Minister Eric Girard, emphasized the need for compliance with the law and ongoing discussions with LaSalle College. The government remains focused on supporting students amidst the financial disputes. Meanwhile, the college awaits a response from Higher Education Minister Martine Biron’s office regarding its proposals for debt restructuring and program expansion.