Reform for International students : Canada increases the cost-of-living
Studying in Canada offers numerous benefits, and the country is known for providing high-quality education, a multicultural environment, and a high standard of living. The Right Honourable Minister of Immigration, Refugees, and Citizenship, Marc Miller, stated today that the cost-of-living financial criterion for study permit applicants will be enhanced beginning January 1, 2024, to ensure that international students are financially prepared for their student life in Canada. These criteria will be modified annually, as with other immigration programs.
A single applicant for 2024 will need to show that they have $20,635 in addition to their first year of tuition and travel expenditures. This modification will apply to new study permit applications received on or after January 1, 2024. Because of Canadian high-quality educational institutions, welcoming & diverse community, and prospects for some to work or immigrate permanently after graduation, Canada is a popular destination for international students. While students from different nations have contributed to multicultural campus life, culture, and innovation across the country, they have also faced severe problems, such as finding suitable housing, while studying in Canada.
This threshold of cost of living will be annually updated once Statistics Canada changes the low-income cut-off (LICO). To simplify, LICO is the minimal income required to ensure that an individual does not have to spend more than the average portion of their income on needs.
Since the early 2000s, the cost of living for the student visa was fixed at $10,000 for a single applicant and has remained unchanged until now. As a result, financial necessity has not kept pace with the cost of living over time, and students come to Canada to find that their funds are insufficient to cover their daily expenses. In 2024, a single applicant must show that they have $20,635, or 75% of LICO, in addition to their first year of tuition and travel expenses. This modification will be effective for new research permit applications received on or after January 1, 2024.
While Canadian authorities acknowledge that this will assist in avoiding student vulnerability and exploitation, they also recognize that the impact of the modification will vary based on the applicant. Next year, Canada wants to launch focused pilots with partners to test innovative approaches for assisting underrepresented cohorts of international students to pursue their studies in Canada.
The statement today comes on the heels of significant reforms to the International Student Program announced on October 27, 2023, including the establishment of a new framework to reward learning institutions that provide high-quality services and aid to international students, including accommodation. We expect educational institutions to admit only the number of students who can offer basic services, such as lodging.
Minister Miller also presented an update on three temporary rules affecting overseas students, all of which are slated to expire at the end of 2023:
- International students already in Canada, as well as those who have applied for a study permit as of December 7, 2023, will be authorized to work off-campus for more than 20 hours per week until April 30, 2024.
- The measure that allows international students to count time spent studying online toward the length of a future post-graduation work permit as long as it constitutes less than 50% of the program of study will remain in place for students who begin a study program before September 1, 2024.
- Three times, a temporary policy was implemented to offer post-graduation work permit holders an additional 18-month work permit while their initial work permit was about to expire. Foreign nationals with a post-graduate employment permit that expires before December 31, 2023, are still eligible to apply. This temporary policy, however, will not be extended.
