The key change is the increase in the minimum financial requirement for study permit applications, from CA$10,000 to CA$20,635, effective January 1, 2024.
The key change is the increase in the minimum financial requirement for study permit applications, from CA$10,000 to CA$20,635, effective January 1, 2024.
Canada’s Immigration Minister Marc Miller is setting into motion a series of policy reforms that are expected to impact international students in the country—among them an update to financial requirements and work hour limits. These changes are seen as pivotal for the students, educational advisors, and recruitment partners navigating the Canadian immigration landscape.
The key change is the increase in the minimum financial requirement for study permit applications, from CA$10,000 to CA$20,635, effective January 1, 2024. This adjustment, the first in nearly two decades, mirrors the escalating cost of living in Canada.
Historically, international students needed to prove they could support themselves with CDN$10,000 annually, aside from tuition and travel expenses. The new figure of CDN$20,635 more realistically aligns with current living expenses, addressing the gap between previous financial requirements and the actual cost of living in Canadian cities.
“The cost-of-living requirement for study permit applicants has not changed since the early 2000s, when it was set at CDN$10,000 for a single applicant. As such, the financial requirement hasn’t kept up with the cost of living over time, resulting in students arriving in Canada only to learn that their funds aren’t adequate.
“For 2024, a single applicant will need to show they have CDN$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,” the policy said.
This change holds particular significance given the role of international students in Canada’s economy and cultural diversity. International students contribute significantly to the Canadian economy, not only through tuition fees but also by participating in the workforce and bringing diverse perspectives. By ensuring they have sufficient funds to support themselves, Canada is demonstrating a commitment to the welfare and success of these students.
Furthermore, the extension of the work hours limit waiver, initially set to expire on December 31, 2023, and now extended to April 30, 2024, is a crucial update. This allows international students to work off-campus for more than 20 hours per week during the winter semester. This flexibility is a response to the challenges faced by students during the pandemic and acknowledges the ongoing need for international students to support themselves financially while studying.
Interestingly, Minister Miller did not rule out the possibility of permanently increasing the off-campus work hours to 30 hours per week.
“We continue to examine options for this policy in the future, such as expanding off-campus work hours for international students to 30 hours per week while class is in session,” he said.
Such a move would further empower international students, enabling them to gain more work experience and better support their studies financially.
The Immigration, Refugees, and Citizenship Canada, IRCC’s approach to post-graduation work permits (PGWPs) also warrants attention. The continuation of allowing remote online study to count towards a future PGWP, with a cut-off date set for September 1, 2024, reflects an understanding of the evolving nature of education and the impacts of the COVID-19 pandemic. Additionally, extensions for qualifying PGWP holders who could not fully utilize their permits post-graduation offer critical support for gaining Canadian work experience, which is often a pathway to permanent residency.
These updates are a part of Canada’s broader strategy to attract and retain international talent. The country’s demographic challenges, such as an aging population and labor shortages in key sectors, make international students a valuable resource. By offering them a conducive environment to study and work, Canada positions itself as a leading destination for global talent.
However, these changes also raise concerns. The increased financial requirement might make studying in Canada less accessible for students from lower-income backgrounds or countries with weaker currencies. This could lead to a decrease in the diversity of the international student population in Canada, which has been one of its strengths. It is essential for the Canadian government and educational institutions to find a balance between ensuring students’ financial stability and maintaining accessibility to a diverse group of international students.
The IRCC’s recent updates reflect a nuanced understanding of the challenges faced by international students in Canada and demonstrate a commitment to their success and well-being. While these changes are a step in the right direction, continuous monitoring and adjustments will be necessary to ensure they meet the evolving needs of international students and the Canadian education sector. As always, students and stakeholders are advised to stay updated with the latest information from the IRCC.
