The increase in the cost of living requirements from a flat $10,000.00 to 75% of LICO, aims to protect international students from vulnerability and exploitation by ensuring they arrive with adequate funding to live while studying in Canada

Canada has long been a preferred destination for international students due to its high-quality educational institutions, diverse society, and opportunities for post-graduation work or permanent immigration. However, these students have faced challenges, including finding adequate housing and financial preparedness. In response to these issues, Marc Miller, the Minister of Immigration, Refugees and Citizenship, announced a significant change to the cost-of-living financial requirement for study permit applicants on December 7th, 2023.

Financial Preparedness for Life in Canada

Starting from January 1, 2024, the cost-of-living financial requirement for study permit applicants will be increased to ensure that international students are adequately prepared for their life in Canada. The threshold will be adjusted annually based on updates to the low-income cut-off (LICO) by Statistics Canada. LICO represents the minimum income necessary to cover basic necessities without spending an excessive portion of income.

The current cost-of-living requirement has remained unchanged since the early 2000s, at $10,000 for a single applicant. This outdated requirement fails to keep pace with the rising cost of living, leading to situations where students arrive in Canada only to discover that their funds are insufficient. In 2024, a single applicant will need to demonstrate financial resources of $20,635, representing 75% of LICO, in addition to their first year of tuition and travel costs. This change will apply to new study permit applications received on or after January 1, 2024.

Addressing Student Vulnerability and Exploitation

The increase in the cost-of-living requirement aims to prevent student vulnerability and exploitation. By ensuring that international students have sufficient funds to cover their living expenses, the Canadian government seeks to protect them from financial hardships and potential exploitation. This change acknowledges the importance of supporting students throughout their academic journey in Canada.

Targeted Pilots for Underrepresented Cohorts

Recognizing that the impact of this change may vary among applicants, the government plans to implement targeted pilots in collaboration with partners. These pilots will test new ideas aimed at assisting underrepresented cohorts of international students in pursuing their studies in Canada. By tailoring support to specific groups, the government aims to create a more inclusive and equitable environment for all international students.

Reforms to the International Student Program

This announcement follows important reforms to the International Student Program that were introduced on October 27, 2023. These reforms focus on developing a framework to recognize learning institutions that provide high-quality services and support, including housing, to international students. Learning institutions are expected to accept only the number of students they can adequately support, ensuring access to suitable housing options.

Ensuring Adequate Student Supports

To fulfill their responsibility of supporting international students, the Canadian government is prepared to take necessary measures, including limiting visas, to ensure that designated learning institutions provide sufficient student supports. Ahead of the September 2024 semester, the government will work closely with provincial and territorial governments, learning institutions, and other education stakeholders to ensure that international students are set up for success in Canada.

Updates on Temporary Policies

Minister Miller also provided updates on three temporary policies affecting international students. Firstly, the waiver on the 20-hour-per-week limit for off-campus work will be extended until April 30, 2024. This allows international students to work more than 20 hours per week while classes are in session. Future options, such as expanding off-campus work hours to 30 hours per week, are being considered.

Secondly, the facilitative measure that allows international students to count time spent studying online towards the length of a post-graduation work permit will continue for students who begin their study program before September 1, 2024. However, this measure will no longer apply to students starting their program on or after that date.

Lastly, the temporary policy providing an additional 18-month work permit to post-graduation work permit holders as their initial permit expires will not be extended further. Foreign nationals with a post-graduation work permit expiring up to December 31, 2023, remain eligible to apply under this policy.

IRCC Rationale

The increase in the cost-of-living requirement for international students applying for study permits in Canada reflects the government’s commitment to ensuring their financial preparedness and overall well-being. By addressing the challenges faced by international students, such as housing and financial vulnerability, Canada aims to provide a supportive and inclusive environment for their academic pursuits. These changes, along with the reforms to the International Student Program, demonstrate the government’s dedication to maintaining the integrity of the program and maximizing the benefits that international students bring to Canada.