International Students: Cost of living fund requirement doubles to Canadian $20,635 for international students; limit on visas is contemplated

MUMBAI: From January 1, international students will need double the amount of money in their bank accounts – Canadian dollars (CAD) 20,635 to be eligible for a Canadian study permit. This sum is in addition to their first year of tuition and travel costs. Marc Miller, Canada’s immigration minister made several key announcements while addressing a press conference late night on Thursday.
The cost of living requirement (aka the funds needed in a bank account to prove financial stability) had remained unchanged at CAD 10,000 since the early 2000s. Since then costs, especially housing costs have increased sharply, necessitating an upward revision. In addition, the cost of living requirement will be adjusted annually, when Statistics Canada updates the low-income-cut-off (LICO), which is the minimum income considered necessary for living in Canada.
Miller also mentioned that Canada is prepared to take necessary measures ahead of the September 2024 semester, including limiting visas if educational institutions aren’t able to provide sufficient support to its international students.

A silver lining for the international student community is that the waiver on the 20-hour limit for off-campus work (while class is in session), that was set to expire at the end of December, has been extended until April 30, 2024. International students who are already in Canada, as well as those who have already submitted an application for a study permit as of December 7, 2023, are eligible for this extension.
Canada attracts many international students, with 5.5 lakh new students from 184 countries being admitted during 2022. According to official data, India was by far the most significant source country, with 2.2 lakh new students, followed by China with 52,000 odd new students.
According to Miller, the hike in the ‘cost of living financial requirement’ is necessitated to ensure that students have adequate money to support themselves when they arrive in Canada. Recently, several food-banks in Canada have begun to turn away international students including Indian students, who were arriving in groups – on the ground that an essential requirement is that students need to have sufficient funds to fend for themselves and the food supplies are meant for the homeless and needy. There have also been news reports of students, largely Indian, who were provided just two days of accommodation by an Ontario based education institute, resulting in severe hardship.
Immigration, Refugees and Citizenship Canada (IRCC), the immigration arm of the government, in a statement stated, “The cost-of-living requirement for study permit applicants study permit applicants has not changed since the early 2000s, when it was set at $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 $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 immigration agency further explains that Quebec establishes its own cost-of-living threshold for international students destined for Quebec’s educational institutions and has continued to raise this threshold periodically.
Reactions to the increase in the cost of living financial requirement are mixed with some messages on social media screaming: Goodbye to international students.
According to Sindhu Mahadevan, a Toronto based quality assurance professional, who pens on immigration issues, it does make sense to ensure that international students entering Canada are in a position to sustain themselves. This is an important part of ensuring their safety, so it is appropriate to revise the proof of fund requirements to reflect these realities.
An Indian STEM student in Toronto who spoke on the condition of anonymity, said that the cost of a one-bedroom apartment, which he shares with two other students is slightly above CAD 1,500 per month. Two years ago, it cost around CAD 800-1000 per month. He is happy with the leeway given as regards off-campus work, and hopes favourable policies will be carved out for the future.
Miller said, “It would be a mistake to blame international students for the housing crisis. But it also be a mistake to invite them to come to Canada with no support, including how to put a roof over their heads.”
“It’s why we expect learning institutions to only accept a number of (international) students that they’re able to provide for, able to house, or assist in finding off-campus housing,” he added.
RCC is looking at permanently increasing the work allowance to 30 hours per week, but Miller ruled out allowing students to work full-time permanently. The current extension will enable international students to work more than 20 hours off-campus through the remainder of the school year and until August 31, 2024, points out the Canadian Alliance of Student Associations (CASA).
“International students have been facing the harsh realities of the cost of living crisis in Canada, and the temporary removal of the off-campus work hour cap has been a major lifeline for many. Today’s announcement provides these students with temporary room to breath. CASA has been advocating for a permanent removal of the cap, ensuring international students can support themselves and their academic goals in Canada,” said Mateusz Salmassi, Director of Advocacy at CASA.