ILAC closure (bankruptcy): refunds, study permits and what students should do

On 18 September 2026, ILAC, a language school in Toronto and Vancouver, went bankrupt and cancelled all classes. More than a month after the closure, guidance from the industry association and from the provincial and federal governments has now been published.

In short

Enrolled and booked students should follow Languages Canada's placement plan (eCAP). Students with a study permit need to apply again with a letter of acceptance (LOA) and a provincial attestation letter (PAL) from their new school, and should not travel on a study permit that names ILAC. Tuition paid for an approved program in British Columbia may be claimed from a provincial fund within one year of the closure.

Key terms

The terms used in this article, in one place.

What happened when ILAC closed?

According to ILAC's official site, ILAC filed for bankruptcy protection, ceased operations immediately and cancelled all classes and programming. It cites increasing financial challenges over the past three years caused by significant regulatory changes affecting the sector (ILAC official site).

KPMG, the trustee in bankruptcy, reports that six companies, including ILAC, filed an assignment in bankruptcy. At each company's first meeting of creditors, held online, KPMG's appointment as trustee was affirmed (KPMG).

British Columbia's Private Training Institutions Regulatory Unit (PTIRU) says that four institutions of ILAC Education Group are no longer certified: ILAC International College, International Language Academy of Canada, Tamwood Careers and Tamwood Language Centres (PTIRU, updated 20 October 2026).

What is Languages Canada doing?

Languages Canada, the association of Canada's language schools, is arranging placements at other member schools (eCAP) so that students of a closed member can finish the language studies they have already paid for. Students do not pay extra tuition to the new school for the period being replaced, and no new registration fee is charged for a placement with a member (Languages Canada, updated 6 October 2026).

Its update of 6 October 2026 says placements have been confirmed for 2,781 students affected by the closures of ILAC's language programs and EC English schools, including 96% of in⁠-⁠person ILAC students studying at the time of the closures. Fewer than 3% of current students still need a placement, and placements for students with start dates through April 2027 are the next priority.

However, eCAP is not insurance and does not refund tuition. Housing, transport, textbooks, insurance and visa fees are not covered, and neither is study you had not paid for. For example, if you paid for 8 weeks of a 12-week course, you will have to pay for the remaining 4 weeks yourself (Languages Canada).

How does IRCC treat study permits?

We could not find any announcement or special measure from Immigration, Refugees and Citizenship Canada (IRCC) that names ILAC. The general rules for school closures apply. Languages Canada says it is working with IRCC to flag affected students' applications and to pass IRCC's instructions on to students (Languages Canada, updated 6 October 2026).

IRCC's study permit conditions page says that a permanent school closure counts as an authorized leave, which can last up to 150 days. During the leave you cannot work on or off campus, even if your study permit allows you to work (IRCC, updated 24 April 2026). BC's PTIRU also says that students enrolled at the time of the closure have up to 150 days to get an LOA and a PAL from another school and apply for a new study permit, or to change their status.

To change schools, you apply to extend your study permit. You need an LOA from the new school and, unless an exception applies, a new PAL. Once you have applied for the extension, you can start classes at the new school before the decision if all of the following apply (IRCC, updated 10 June 2026). The basics of study permits are also on ABROAD's Canada visa and entry page.

• You have not left Canada since receiving the new school's LOA
• You still meet the conditions of your previous study permit
• Your former school closed before you finished your program

How is tuition protected in British Columbia and Ontario?

BC's PTIRU says that students enrolled in an approved program when their institution closed may be able to claim from the Student Tuition Protection Fund. You can claim up to the tuition you paid; application fees, textbooks and course materials are not included. Claims must be made within one year of the closure and sent to PTI.InstitutionClosure@gov.bc.ca, not to KPMG (PTIRU, updated 20 October 2026).

Language students must also file a claim with PTIRU, separately from Languages Canada's placement, if their program lasted more than six months or cost 4,000 Canadian dollars or more. Career students are asked to wait for PTIRU to confirm a train⁠-⁠out institution; signing with or paying another school before that may affect support from the fund (PTIRU). The funding British Columbia provides is paid directly to the receiving school and cannot be used for refunds (Languages Canada).

Ontario has a fund for closures of registered private career colleges (the Training Completion Assurance Fund), which can help eligible students complete their training or get a refund (Government of Ontario). We could not confirm which ILAC programs it covers or find any provincial announcement about ILAC.

We could not find a safety notice about ILAC from the Consulates⁠-⁠General of Japan in Vancouver or Toronto (as of 24 October 2026).

What should enrolled and booked students do?

What to do depends on whether you were enrolled, had booked but not started, or are choosing a school. Start with the case that applies to you.

1. You were studying in Canada

   Wait for an email from Languages Canada. It goes to the address you registered with ILAC, so check your spam folder too. If you have a study permit, apply for an extension with an LOA and a PAL from your new school. Languages Canada recommends asking the new school for a letter explaining that your tuition is covered by eCAP, and keeping proof of your original payment and any messages about the closure. For ILAC grades and certificates, contact info@ilac.com.

2. You had booked or paid but not yet started

   If you paid tuition in advance, you can get a placement even if your course starts in 2027. If your course was due to start on or after 21 September 2026, complete the Student Information and Proof of Payment Form that Languages Canada sent you. Travelling to Canada on a study permit that names ILAC risks being denied entry at the border. Apply again for a study permit with an LOA and a PAL from your new school, and pay the fees for the new application (IRCC). BC's PTIRU also asks students who paid but had not started to file a claim with the fund.

3. You are choosing a school

   Even if you never booked with ILAC, you can check before choosing how far you would be protected if a school closed. See the five points in the next section.

4. You arranged another school yourself

   You can make your own arrangements with a member school that agrees to accept you, without Languages Canada's approval. In that case, email student@languagescanada.ca with the subject "PLACEMENT NO LONGER REQUIRED" and include your name, student ID and new school. If you choose a school that is not a member, Languages Canada says it cannot oversee that school and recommends checking the effect on your study permit with a licensed immigration consultant or lawyer.

Checklist

If you were enrolled or had booked a course, go through the list from the top.

1. Check emails from Languages Canada (including spam) and return any form
2. Do not travel on an ILAC study permit; apply with the new LOA and PAL
3. If your BC program was approved, claim from the fund within one year of the closure
4. Keep proof of payment, your letter of acceptance and messages about the closure
5. If you arranged a school yourself, tell Languages Canada

What should you check when choosing a school?

How far you are protected if a school closes depends on the association the school belongs to and on the province's rules. Before you apply, check the following.How to check accreditation for schools in Vancouver is also covered in How to choose a language school in Vancouver.

• Is the school a member of Languages Canada? (Check the membership list)
• For a school in BC, is it certified by PTIRU? (Private Training Institution Directory)
• For a language program in BC, does it last more than six months or cost 4,000 Canadian dollars or more, so that it needs approval?
• For a career college in Ontario, is the program approved at a registered college?
• Have you kept your letter of acceptance, contract and receipts?

Languages Canada says that membership and accreditation do not guarantee that a school will never close. Placements cover only tuition you have paid, not housing or insurance.

Searching for schools in Canada on ABROAD

BLOOM ABROAD unpublished its ILAC school pages on 9 October 2026. If you are choosing a new school in Canada, compare options on the Vancouver school list and the Toronto school list, and check membership and certification on each school's official site and the lists above.

Sources

Government and public bodies

• IRCC, "Changing schools or programs as an international student" (updated 10 June 2026)
• IRCC, "Study permit conditions" (updated 24 April 2026)
• Government of Ontario, "Private career college closures"

Official information from each company

• Languages Canada, "EC English and ILAC closures: Updates and FAQs" (updated 6 October 2026)
• Languages Canada membership list (PDF)

BLOOM (our own and group sites)

• BLOOM ABROAD Canada visa and entry page

• ILAC official site (closure notice)
• KPMG (trustee in bankruptcy page)
• BC PTIRU, "ILAC Education Group Closure" (updated 20 October 2026)
• BC PTIRU, "General Complaints and Tuition Refund Claims"
• BC PTIRU, "Private Training Institution Directory"