By: Dana Kyle, Case Manager
Starting January 1, 2024, the cost-of-living financial requirement for study permit applicants will be raised so that “international students are financially prepared for life in Canada” Immigration Minister Marc Miller announced on December 7. With IRCC’s aim of better protecting international students by increasing the cost-of-living financial requirements, starting in 2024, single study permit applicants will need to show that they have $20,635 available to them to cover their cost-of-living expenses, in addition to their first year of tuition and travel costs.
This change follows an announcement on October 27, 2023 to reform the International Student Program regarding the development of a new framework to recognize learning institutions that provide top quality services and support to international students.
Ahead of the September 2024 semester, the government has announced that they are prepared to take necessary measures, including limiting the amount of study permits, in order to ensure that designated learning institutions are able to provide adequate student supports, including housing, as part of the academic experience.
“International students provide significant cultural, social and economic benefits to their communities, but they have also faced challenges navigating life in Canada. We are revising the cost-of-living threshold so that international students understand the true cost of living here. This measure is key to their success in Canada. We are also exploring options to ensure that students find adequate housing. These long-overdue changes will protect international students from financially vulnerable situations and exploitation.”
- The Honourable Marc Miller, Minister of Immigration, Refugees and Citizenship
The cost-of- living requirement has not changed since the early 2000’s, when it was set at $10,000 for a single applicant. The government has also announced that moving forward, the threshold will be adjusted each year when Statistics Canada updates the low-income-cut-off (LICO) which represents the minimum income necessary to ensure an individual does not have to spend a “greater than average” portion of income on necessities.
This change to the cost-of-living requirement for study permit applicants claims to “better protect international students”. With the rising costs of living across the country, the $10,000 cost-of-living-requirement leaves many students arriving in Canada to learn that they do not have adequate funds. For students studying in some of the country’s most expensive cities such as Vancouver and Toronto, the $10,000 requirement may not even be enough to cover rent for a period of one year, depending on the applicant’s living situation. With the average rent for a 1-bedroom apartment in Vancouver set at a staggering $2,700 monthly, the new financial requirements provide a more accurate picture of the cost-of-living in Canada, but it remains to be seen if this will be financially attainable for many prospective international students.
With the new cost-of living requirement set at more than double the previous amount, it is important to note that this new financial requirement is a step towards better preparing prospective international students for the financial realities of living in Canada. However, it may also curb the amount of study permit applicants given the hefty tuition, fees, and travel costs that international students are already required to pay.
The Minister also provided an update on 3 temporary policies affecting international students that were set to expire at the end of 2023:
- The waiver on the 20-hour-per-week limit on the number of hours international students are allowed to work off campus while class is in session will be extended to April 30, 2024.
- The facilitative measure that has allowed international students to count time spent studying online towards the length of a future post-graduation work permit, as long as it constitutes less than 50% of the program of study, will continue to be in place for students who begin a study program before September 1, 2024. This measure will no longer apply to students who begin a study program on or after that date.
- In response to labour market disruptions during the pandemic and post-pandemic recovery, a temporary policy was introduced on 3 occasions to provide an additional 18-month work permit to post-graduation work permit holders as their initial work permit was expiring. Foreign nationals with a post-graduation work permit expiring up to December 31, 2023, remain eligible to apply. This temporary policy will not be re-extended.
In 2024, the government also intends to implement targeted pilots that will test new ideas aimed at helping underrepresented communities of international students pursue studies in Canada. The change to the cost-of-living financial requirement will apply to study permit applications received on or after January 1, 2024.
