Canada Raises Financial Requirements for International Students

December 7, 2023—Ottawa: Canada remains a favored destination for international students, thanks to its renowned educational institutions, a welcoming and diverse society, and the potential for post-graduation work and permanent residency opportunities. However, despite their contributions to campus life and innovation, international students in Canada have faced significant challenges, particularly in securing adequate housing.

In a move to address these issues, the Honourable Marc Miller, Minister of Immigration, Refugees and Citizenship, announced today that the financial requirements for study permit applicants will be increased as of January 1, 2024. This adjustment aims to ensure that international students are better prepared for the Canadian cost of living. The new threshold will be aligned with Statistics Canada’s annual updates to the low-income cut-off (LICO), which denotes the minimum income required to avoid spending a disproportionate amount on necessities.

New Financial Requirements

The financial requirement for study permit applicants has remained unchanged since the early 2000s, set at $10,000 for a single applicant. With costs having risen significantly, students often find themselves unprepared for the financial realities upon arrival. For 2024, single applicants will need to demonstrate they have $20,635—equivalent to 75% of LICO—alongside their first year of tuition and travel costs. This change applies to new applications submitted from January 1, 2024, onwards.

This increase aims to reduce student vulnerability and exploitation. However, the impact will vary among applicants. To further support underrepresented international student groups, targeted pilot programs will be introduced next year in collaboration with various partners.

Supporting International Students

Today's announcement builds on reforms introduced on October 27, 2023, including a new framework for recognizing learning institutions that offer top-tier services and adequate housing for international students. Institutions are expected to enroll only as many students as they can support effectively.

Ahead of the September 2024 semester, Canada is prepared to take necessary actions, potentially including visa limitations, to ensure that designated learning institutions meet required support standards. This effort will require collaboration with provincial and territorial governments, educational institutions, and stakeholders to ensure international students have the resources needed for success.

Updates on Temporary Policies

Minister Miller also provided updates on three temporary policies set to expire at the end of 2023:

• Work Hour Limit Waiver: The waiver on the 20-hour-per-week limit for off-campus work during class sessions will extend to April 30, 2024. This extension applies to current international students and applicants who submitted their study permit applications by December 7, 2023. Future policy considerations may include increasing off-campus work hours to 30 per week.

• Online Study Time Inclusion: The policy allowing online study time to count towards post-graduation work permits will continue for students beginning their programs before September 1, 2024. This measure will be discontinued for students starting thereafter.

• Additional Work Permit: The temporary provision for an additional 18-month work permit for post-graduation work permit holders will not be extended beyond those expiring up to December 31, 2023.

Conclusion

The contributions of international students bring significant social, cultural, and economic benefits to Canada. To maintain these benefits, it is crucial to address vulnerabilities and uphold the integrity of the International Student Program. By updating the cost-of-living threshold, Canada aims to provide students with a more secure financial foundation as they embark on their educational journeys. This initiative underscores the nation’s commitment to fostering a supportive and thriving environment for international students.