ILAC Closure 2026: Tuition Refunds, Credit Card Claims and Study Permit Options

Published September 20, 2026. Information checked against the sources linked below on that date. This is a developing situation; individual placement, refund and insolvency arrangements may change.

The ILAC closure has left students facing urgent questions about tuition refunds, replacement classes and their plans in Canada: the International Language Academy of Canada announced that it filed for bankruptcy protection and cancelled all classes and programming effective September 18, 2026. (ILAC closure notice) CBC reports that Languages Canada identified 1,362 affected students and was working to arrange placements in alternative, equivalent programs. (CBC reporting)

For a student who has prepaid tuition, arranged accommodation and committed months to an education plan, “the school has closed” is not an adequate answer. The practical response should address three separate needs: preserve evidence and recovery options, find an appropriate education solution, and check immigration compliance before making the next move.

The essential distinction: a credit-card dispute is not a guaranteed refund, and a replacement course is not the same as cash reimbursement. Credit-card disputes remain subject to the issuer’s process, while Languages Canada’s published protection plan focuses primarily on course completion and expressly limits financial compensation. (CIBC dispute guidance; Languages Canada education-completion plan)

What happened to ILAC?

ILAC’s official notice says that it ceased operations immediately on Friday, September 18, cancelled all classes and programming, and appointed KPMG Inc. as Licensed Insolvency Trustee under the Bankruptcy and Insolvency Act. (ILAC closure notice) Canadian Press reporting carried by CityNews identifies the school’s Toronto and Vancouver campuses. (CityNews / Canadian Press)

The school says it is working with relevant regulators to support the transition, but its notice does not announce a universal cash-refund guarantee or a complete student claims procedure. (ILAC closure notice) Languages Canada’s reported efforts to arrange alternative programs are an important development, but should not be described as confirmation that every student has already received a placement. (CBC reporting)

For any claim or transfer request, start with the name on the student’s enrolment agreement, the exact program, campus and payment recipient. Do not assume that a brand name on marketing material establishes which legal entity owes money or which protection scheme applies.

Why did ILAC close?

The school’s explanation

ILAC attributes its difficulties to increased financial challenges over the previous three years arising from significant regulatory changes affecting the sector, and says it no longer had the financial resources needed to continue operating. (ILAC closure notice) This is the institution’s stated explanation; the notice does not provide audited financial statements, a creditor schedule or a detailed cash-flow history establishing the contribution of each factor. (ILAC closure notice)

The responsible conclusion is therefore narrower than “one policy caused the bankruptcy.” ILAC has publicly described financial distress and regulatory pressures, but the notice alone does not establish the full sequence of business decisions or explain the treatment of each student’s prepaid money. (ILAC closure notice)

The unanswered accountability questions

Our analysis is that the next stage should focus on evidence, not speculation. Questions worth putting to the institution and trustee include:

• Timing: When did management conclude that the school might not be able to complete prepaid programs?
• New payments: Were advance tuition payments or new enrolments accepted after that risk became apparent?
• Student funds: How were tuition, accommodation and other prepaid amounts recorded and handled?
• Warnings: What information was given to students, agents and regulators before the closure?
• Alternatives: Was an orderly transfer or gradual wind-down considered?
• Recovery: Which entities hold relevant assets, which entities owe the student obligations, and what claims process will apply?

These are questions for investigation, not allegations of fraud, misuse of funds or misconduct. A student-focused article should hold institutions accountable without presenting unproven accusations as facts.

ILAC tuition refunds: understand the different routes

There is no single answer covering every affected student. The available routes must be checked against the payment method, contracting institution, program approval and applicable protection rules. (CIBC dispute guidance; Languages Canada plan; Ontario career-college closure guidance; B.C. tuition protection guidance)

• Credit-card dispute: Ask the issuing bank whether the undelivered educational services qualify for a dispute and what evidence and time limits apply; eligibility is not automatic. (CIBC dispute guidance)
• Languages Canada assistance: Eligible students may be considered for placement using remaining prepaid tuition, with limited potential financial assistance if a comparable placement cannot be found. (Languages Canada plan)
• Provincial protection: Ontario and British Columbia have separate student-protection arrangements, but eligibility depends on the relevant institution and program requirements, not simply on being an international student. (Ontario guidance; B.C. approved-program guidance)
• Insolvency claim: Students should obtain the trustee’s instructions for documenting the debt and submitting a proof of claim; filing the claim is not the same as receiving a refund. (ILAC trustee announcement; federal proof-of-claim form)

Before accepting a settlement, replacement course or credit, ask how it affects any other claim. Disclose amounts already returned or credited, and do not request recovery twice for the same loss.

Paid tuition by credit card? Contact the issuer promptly

A student or parent who paid tuition by credit card should ask the card issuer about a dispute for services not provided, explaining that the school has closed and identifying the undelivered portion of the program. Bank dispute processes can cover non-delivery, but remain subject to supporting evidence and other conditions. (CIBC dispute guidance)

CIBC’s published guidance, for example, says a cardholder ordinarily needs to attempt resolution with the merchant first, but makes an exception where the merchant is bankrupt or out of business. (CIBC dispute guidance) That is useful guidance for CIBC customers, not a rule that should be automatically applied to every bank or foreign-issued card.

Ask the issuer these questions:

• Eligibility: Can the unused tuition be disputed as services not received?
• Deadline: What is the deadline for this particular transaction, considering when the services were due?
• Evidence: What proof of payment, course dates, closure and unused tuition does the issuer require?
• Partial delivery: How should completed classes be separated from classes that were never delivered?
• Payment recipient: Does it matter whether the statement names the school, an agent or another payment provider?
• Outcome: If a temporary credit is issued, when does the issuer consider the dispute finally resolved?

Keep the contract, invoice, card statement, receipts and school correspondence together: bank guidance identifies transaction receipts, emails, contracts and invoices among the evidence that may be needed. (CIBC dispute guidance) Describe an authorized payment accurately; the recommended inquiry is about undelivered services, not a claim that the card transaction was unauthorized when the cardholder knowingly approved it.

Do not publish a universal “120-day deadline” or promise that every card payment can be recovered. Ask the issuer to confirm the applicable procedure in writing and preserve the case number.

Paid by bank transfer, cash or an agent?

Students who did not use a credit card should not assume that every other route is closed. Languages Canada’s published plan relies on proof of registration and payment, and provincial protection schemes also have their own evidence and eligibility requirements. (Languages Canada plan; Ontario guidance; B.C. guidance)

For these students, we recommend separating the investigation into three parts:

• Trace the payment: Assemble the transfer confirmation, receipt, beneficiary name, payment date and currency. Ask the bank or payment provider whether any payment-specific recovery procedure remains available, without assuming that a completed transfer can be reversed.
• Confirm who received it: If an education agent collected the money, request written confirmation of the amount forwarded to the school, the date and the school’s acknowledgement. Separate tuition from agent fees, accommodation and other charges.
• Pursue the applicable protection process: Contact Languages Canada, the relevant provincial regulator where appropriate, and the trustee rather than waiting for one organisation to resolve every issue.

This distinction matters under the published Languages Canada plan: it states that no student will be placed if an agent is withholding fees from the closed program. (Languages Canada plan) Do not assume that a payment to an intermediary automatically proves that the same amount reached the institution.

Languages Canada: replacement education versus a cash refund

Languages Canada’s published Education Completion Assurance Plan, or eCAP, says it will use reasonable efforts to coordinate transfers following a member program’s closure. (Languages Canada plan) Where a receiving program is found, the plan offers a credit for remaining prepaid tuition toward a comparable program in hours and content, potentially online or in the same geographical area. (Languages Canada plan)

The published plan contains important limitations:

• Placement deadline: Affected students must file a claim within 30 business days of the program closure date to be considered for placement. (Languages Canada plan)
• Program assignment: Students do not have an unrestricted right to choose or change the receiving program, although special circumstances may be considered. (Languages Canada plan)
• Additional costs: A receiving school should not charge a registration fee, but necessary course materials may remain the student’s responsibility. (Languages Canada plan)
• No cash from the receiving school: Students cannot demand a course refund from the institution providing the replacement program. (Languages Canada plan)
• Scope: The plan addresses tuition, not accommodation or other extracurricular commitments, and excludes specialised programs including TEFL/TESL training, internships and summer or winter camps. (Languages Canada plan)

If members cannot provide a comparable completion option, the published Student Education Assurance Fund provisions allow consideration of up to 25% of unearned tuition, subject to available funds, claim assessment and other restrictions. (Languages Canada plan) The plan expressly says reimbursement is not guaranteed and permits changes to the maximum refund in a high-volume claims situation. (Languages Canada plan)

Important limitation: These details come from the publicly available plan dated December 15, 2020, not a verified ILAC-specific compensation award. (Languages Canada plan) Ask Languages Canada to confirm the current arrangements, your program’s coverage and the required submission channel; do not assume that the published maximum is the amount you will receive.

Could provincial tuition protection help?

Ontario: approved career-college programs

Ontario’s Training Completion Assurance Fund, or TCAF, can support eligible students when a registered career college closes before they finish an approved vocational program. (Ontario closure guidance) Ontario specifies that eligible fee-paying students must have signed a contract and be enrolled in an approved program, and excludes programs that are not approved under the Ontario Career Colleges Act, 2005. (Ontario closure guidance)

That does not establish automatic TCAF coverage for every English-language course or every student using the ILAC brand. Ask the ministry to verify the exact institution and program before relying on the fund.

For eligible claims, Ontario describes training completion and refund options, including a six-month refund-claim deadline measured from the Superintendent’s official confirmation of closure. (Ontario closure guidance) This is a separate process from Languages Canada’s placement deadline, so a student should not treat one deadline as an extension of the other. (Ontario closure guidance; Languages Canada plan)

British Columbia: approved programs and the tuition protection process

B.C.’s guidance says that only students enrolled in programs approved by the private-training regulator are eligible to claim against the Student Tuition Protection Fund under the approved-program closure framework. (B.C. approved-program guidance) Its claims process can involve a comparable program at an appointed institution, with the payment going toward that completion arrangement rather than directly to the student. (B.C. tuition protection guidance)

The regulator’s general guidance sets a one-year filing limit for the institution-ceasing-to-be-certified process and requires the specified information and records within the deadline. (B.C. tuition protection guidance) Ask the regulator to confirm the applicable trigger date, certification status and coverage for the exact program; this article does not establish that every Vancouver ILAC student qualifies.

What should students ask KPMG?

ILAC identifies KPMG Inc. as the appointed Licensed Insolvency Trustee and says further information about the process will follow. (ILAC closure notice) Students should request the official creditor notice, the correct debtor name, submission instructions and any claim deadline rather than sending sensitive documents to unverified contacts.

A proof of claim identifies the creditor, the alleged debt and supporting calculations and evidence; the federal form also asks about payments or credits received. (Office of the Superintendent of Bankruptcy form) Prepare a clear account of the amount paid, education delivered, amount claimed and any refund or credit already obtained.

We have not verified an ILAC estate-specific distribution estimate. Do not interpret a filed claim as a promise of full repayment, and obtain legal advice where the amount, contracting structure or dispute requires it.

Study permits: a replacement school does not automatically resolve immigration requirements

Postsecondary DLI changes generally require a new permit application

IRCC says a postsecondary student changing designated learning institutions must get a new study permit by applying to extend the current permit; the application requires a school-change explanation and a new provincial or territorial attestation letter unless an exception applies. (IRCC changing-schools guidance) Simply accepting a transfer or updating an online account should not be presented as the complete current process. (IRCC changing-schools guidance)

Confirm the new school’s DLI status and obtain the new letter of acceptance before finalising the immigration application. (IRCC changing-schools guidance) The exact analysis must also account for the student’s level of study, existing permit conditions and location, rather than treating every short-term language learner as a postsecondary permit holder.

The school-closure exception is important, but conditional

IRCC permits a student to start at the new DLI while waiting for the decision on the study-permit extension application only if all its stated criteria are met. (IRCC changing-schools guidance) The student must:

• Remain in Canada after the new acceptance: They must not have left Canada since receiving the new DLI’s letter of acceptance. (IRCC changing-schools guidance)
• Meet the previous permit conditions: They must continue to satisfy the conditions of the previous study permit. (IRCC changing-schools guidance)
• Fall within a listed disruption: Before they completed their course or program, the previous DLI must have closed, discontinued the program, been placed on the suspension list or lost its designated status. (IRCC changing-schools guidance)

The extension application must be submitted, and students relying on the exception should include evidence establishing the criteria. (IRCC changing-schools guidance) A school-closure notice is useful evidence, but is not itself a new study permit or a substitute for the required application.

As a practical file checklist, assemble the old permit, passport, new acceptance letter, closure notice, enrolment history, proof of the application, attestation documentation where required and a dated explanation of the disruption.

Students still outside Canada need a separate plan

Where the original study-permit application remains in progress, IRCC says the applicant can submit the new acceptance letter and an attestation letter if required through its web form. (IRCC changing-schools guidance) If the application has already been approved and the applicant changes schools while outside Canada, IRCC instead requires a new study-permit application with a new acceptance letter and payment of the applicable fees. (IRCC changing-schools guidance)

Do not assume that an approval tied to the previous education plan can simply be used for a different school. Obtain advice on the new plan before making travel commitments.

Can affected students work while arranging a transfer?

English- or French-as-a-second-language study alone does not qualify a student for the ordinary off-campus work exemption. IRCC expressly excludes students enrolled only in ESL/FSL programs from working off campus without a work permit under that student exemption. (IRCC off-campus work guidance)

IRCC also says students cannot work off campus while on an authorised leave or while switching schools and not studying. (IRCC off-campus work guidance) Do not assume an unexpected closure can be treated as a scheduled holiday permitting additional work.

Any separate work permit or other work authorization must be assessed on its own terms. Financial hardship is a reason to seek timely advice, not a reason to assume new work rights exist.

A practical action plan for affected students

Our recommended approach is to build one organised evidence file and pursue the relevant processes in parallel. Do not wait for a complete explanation of the bankruptcy before preserving documents or asking about time-sensitive options.

1. Save the education records: Keep the signed contract, acceptance letter, course calendar, transcripts, attendance records and emails.
2. Save the money trail: Gather receipts, bank or card statements, agent invoices and proof identifying who received each payment.
3. Separate each loss: List undelivered tuition, accommodation, materials, agent charges and other expenses individually; do not assume one protection scheme covers them all.
4. Contact the relevant organisations: Ask the card issuer or payment provider about recovery, Languages Canada about placement, the provincial regulator about program-specific coverage and KPMG about creditor instructions.
5. Document every deadline: Record the source of each deadline and request written confirmation where possible.
6. Review immigration status before starting elsewhere: Check the new program, DLI, application requirements and any applicable closure exception.
7. Keep a communications log: Record dates, case numbers, names, promised follow-ups and copies of all submissions.

For orientation, the published Languages Canada plan uses a 30-business-day placement deadline, Ontario’s eligible refund process uses a six-month period linked to official closure confirmation, and B.C.’s relevant closure-claim process uses a one-year limit. (Languages Canada plan; Ontario guidance; B.C. guidance) These are different schemes with different eligibility rules, not interchangeable choices or a reason to delay.

Suggested wording for an initial enquiry

I was enrolled in [program] with [legal institution name] at [campus]. I paid [amount] on [date] through [payment method/recipient], for classes scheduled from [date] to [date]. The school has announced its closure. Please confirm whether your process applies to my circumstances, the filing deadline, the documents required, and whether any proposed placement, credit or payment affects my other recovery options.

Adapt the wording to the recipient and attach only the information needed for that process. Keep passport and financial information out of public comments and verify the recipient before transmitting sensitive records.

Frequently asked questions about the ILAC closure

Is ILAC closed?

ILAC’s September 18, 2026 notice says it ceased operations and cancelled all classes and programming immediately. (ILAC closure notice) Students should follow official communications for developments rather than assuming a class or service continues.

Are ILAC tuition refunds guaranteed?

No universal guarantee is established by the school’s closure notice, and Languages Canada’s published plan expressly limits and does not guarantee financial reimbursement. (ILAC closure notice; Languages Canada plan) Review the applicable payment-dispute, protection and creditor processes separately.

Can I claim tuition back if I paid by credit card?

You can ask the issuer whether undelivered tuition qualifies for a dispute, but the bank will assess eligibility and evidence under its process. (CIBC dispute guidance) Contact the issuer promptly and ask for the applicable deadline rather than assuming approval.

What if I paid by cash, bank transfer or through an agent?

Languages Canada assistance and eligible provincial protection are not described solely as credit-card remedies; they require proof and satisfaction of their own coverage rules. (Languages Canada plan; Ontario guidance; B.C. guidance) Trace the payment and confirm whether it reached the school.

Will Languages Canada refund all unused tuition?

Its published plan prioritises comparable course placement and provides only limited potential financial reimbursement where completion cannot be arranged, with no reimbursement guarantee. (Languages Canada plan) Ask for written confirmation of the arrangements applicable to your program.

Is the published 25% figure a promised ILAC refund?

No: it is a conditional maximum in the published Student Education Assurance Fund rules, subject to available funds and other restrictions, not a confirmed ILAC-specific award. (Languages Canada plan) The applicable assistance must be confirmed with Languages Canada.

Are rent, homestay fees and travel costs covered?

The published Languages Canada plan addresses tuition commitments and does not cover accommodation or other extracurricular matters. (Languages Canada plan) Keep these expenses separate and ask about any other applicable contractual or recovery options.

Can I start at another DLI while my study-permit application is pending?

IRCC provides a limited exception following closure or another listed disruption, but the extension application must be submitted and all the exception’s conditions must be satisfied. (IRCC changing-schools guidance) A transfer acceptance alone is not enough.

Can an ESL student work off campus because the school closed?

ESL/FSL-only students do not qualify for the ordinary off-campus student work exemption, and IRCC prohibits off-campus work while switching schools and not studying. (IRCC off-campus work guidance) Any separate work authorization needs its own assessment.

Does Ontario or B.C. tuition protection cover every ILAC student?

Coverage is program-specific: Ontario requires an approved vocational program at a registered career college, and B.C.’s approved-program closure framework has its own eligibility requirements. (Ontario guidance; B.C. approved-program guidance) Confirm the exact program with the relevant regulator.

What if my study-permit application was approved but I have not travelled?

IRCC says an applicant who changes schools after approval while outside Canada must submit a new study-permit application with a new letter of acceptance and pay the fees. (IRCC changing-schools guidance) Reassess the travel and study plan before departure.

Who is the insolvency trustee?

ILAC’s notice names KPMG Inc. as Licensed Insolvency Trustee. (ILAC closure notice) Obtain official instructions identifying the relevant debtor and claim procedure before submitting personal documents.

How VGIS can help with the immigration side

If you are affected, request an individual review of your current permit, proposed replacement school, application timing and any work restrictions. Bring your immigration documents, old and new acceptance letters, enrolment information and the closure notice so the advice can address your actual circumstances.

For the financial side, direct chargeback questions to the card issuer, placement and tuition-protection questions to the relevant administrator, and insolvency questions to the trustee or a qualified legal adviser. An immigration consultation should not be mistaken for a promise of tuition recovery.

Book a Consultation

For related background, see the VGIS September 2026 IRCC processing-times update. Processing information is context only, not a guaranteed decision date for an individual application.

This article provides general information, not individual legal, financial or insolvency advice. VGIS does not guarantee a refund, placement, permit approval or other outcome.

Featured image: AI-generated conceptual illustration of fictional adult students. It does not depict ILAC premises, affected students or an actual event.

VG Immigration Services Inc. | Dimple Verma, RCIC-IRB R708308 | vgis.ca