Know All about Canada’s Cost-of-Living Financial Requirement for International Students in 2024!

Canada is home to hundreds of thousands of international students from all over the world each year. In Canada, the level of living is very high. The same freedoms and privileges that safeguard all Canadians are enjoyed by international students: equality, diversity, human rights respect, and a stable, peaceful society.

In this blog we will Talk about all the latest regulations and updates on Canada. Canada has decided to increase the cost-of-living financial requirement for study permit applicants from January 1, 2024. International students will now have to show a whopping $20,635, in addition to their tuition fees and travel expenses.

The Minister of Immigration Refugees, and Citizenship Marc Miller lately made the declaration. He stated that the cost-of-living financial requirement for study permit applicants will increase from January 1st, 2024, onwards, so that international students are prepared financially to live in Canada.

Transition Adjustment Based on Low-Income Cut-Off

Moving forward, the transition will be adjusted annually, based on Statistics Canada's low-income cut-off (LICO). The low-income threshold signifies the minimum income required to ensure that individuals do not spend more than the average income on necessary items.

New Policy Details

Under the new regulation, students must demonstrate they have $20,635, which is 75% of LICO, in addition to their first-year tuition fees and travel costs. This change will apply to all study permit applications received on or after January 1, 2024. It is important to note that this will impact all international students, including Indian students, who consider Canada as their top study-abroad destination.

The statement also highlights that the cost-of-living requirement for international students remained the same since the early 2000s, when it was set at $10,000. This amount is substantially low and has failed to keep up with the rising cost of living over time. Unfortunately, students only realised their funds were inadequate after arriving in Canada.

Previous Announcement: Reforms for Recognising Quality Learning Institutions

This recent announcement follows another pronouncement made on October 27, 2023. This announcement outlines significant reforms in the development of a new framework to recognise learning institutions that offer top-quality services and support, including housing, to international students.

The statement emphasises, "We expect learning institutions to accept only the number of students they can adequately support, including providing suitable housing options."

Future Measures: Visa Limitations and Collaborative Efforts

Canada will continue working with provincial and territorial governments, as well as educational institutions, to determine additional measures, including visa limitations for international students before the September 2024 semester begins.

Miller added that they are prepared to implement the required steps, such as restricting visas, to guarantee that approved educational institutions offer students enough support during their academic careers. In order to guarantee that international students are prepared for success in Canada, achieving this goal necessitates cooperation with provincial and territory governments, educational institutions, and other education stakeholders.

Temporary Policies During and After the Pandemic

Since the Covid-19 pandemic and post-pandemic recovery caused labour market disruptions, a temporary policy was established on three occasions, granting an additional 18-month work permit to post-graduation work permit holders whose initial permit was expiring. However, this temporary policy will not be extended any further, and foreign nationals with post-graduation work permits expiring before December 31, 2023, remain eligible to apply.

Future Working Hour Policy for Students

Regarding the working hour policy for students, the Minister stated that they will explore options in the future. Currently, international students working part-time receive a waiver from the 20-hour-per-week limit, allowing them to work up to 30 hours per week while classes are in session. This expanded limit will be valid until April 30, 2024.

International students who are already in Canada, as well as those who have applied for a study permit on or before December 7, 2023, will be allowed to work off-campus for more than 20 hours per week until that time.

The statement clarifies, "The facilitative measure that accounts for online studying time towards 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 commencing a study program before September 1, 2024."

However, this measure will not apply to students starting a study program on or after September 1, 2024. Distance learning facilitation measures were originally implemented in 2020 due to travel restrictions during the pandemic. By September 2022, the vast majority of international students were attending classes in person in Canada.

Challenges for Indian Students in Canada

In recent times, Indian students studying or aspiring to study in Canada have faced several challenges, including issues with deportation due to fake admission offer letters, limited job opportunities, and subpar housing facilities.

Moreover, strained diplomatic ties between India and Canada resulted in both countries issuing travel advisories to their citizens, affecting the visa process for many students.

Conclusion

We at MWT Education Consultancy have helped thousands of students to migrate to various countries. Contact us for any further questions or clarifications that you may have regarding your study abroad endeavours. Follow us for the latest education news on colleges and universities, admissions, courses, exams, research, education policies, studying abroad, and more.