Revised financial requirements

For years, Canada has been the main educational destination for many international students who are attracted by the recognition of its high quality educational institutions and its culturally diverse society; however, many of them have also faced constant challenges related to the cost of living threshold established by the Canadian government itself and dating back to 2000, i.e. more than twenty years have marked the financial standard of these students who come mentalized to manage an annual budget of 10.10,000 Canadian dollars at the time of applying for their study permit plus the cost of the first academic year, but that is not enough to sustain them for such an extensive period, which aggravates their daily quality of life and leaves them in a kind of financial insecurity that ends up taking away the welfare they deserve to have in the same country that has received them to study and make a life in it. It is for this very reason that the Minister of Immigration, Refugees and Citizenship, Marc Miller, announced a series of revised requirements aimed at better protecting and supporting international students in Canada through a new cost of living threshold so that they do not have to go through financial hardship halfway through.

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What does Minister Miller propose in his revised requirements?

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The Minister proposes financial preparedness for international students, so significant changes will be implemented in the financial cost of living requirement for study permit applicants; this means that it will raise the cost of living threshold so as to guarantee international students the proper framework for real and up-to-date financial planning with the incipient third decade of this 21st century, and this change begins on January 1, 2024.

We reiterated above where we mentioned that it has been more than twenty years that the income threshold has not been modified, hence we at Immiland agree with this measure; in fact, we always recommend our clients to have more funds in their bank account than what is stipulated by the government because in a first world country like Canada it is to be expected that the cost of living is also high and it is not necessary to go through precariousness due to lack of planning and specialized recommendations.

On the other hand, as stated in the release that gives rise to this article, Minister Miller emphasized the importance of these changes to prevent student vulnerability and exploitation, recognizing that the impact may vary among applicants. In addition, to address potential disparities, the government plans to collaborate with partners to implement targeted pilots in 2024, testing new ideas to support underrepresented cohorts of international students.

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How will this new cost-of-living threshold be managed?

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This new financial requirement will be adjusted annually according to Statistics Canada's low income threshold (LICO), which sets a more accurate and realistic standard for the cost of living in this country. As such, a single applicant will be required to demonstrate in 2024 that they have prepared financially and will do so by showing in their bank account that they have $20,635 Canadian dollars, which represents 75% of the LICO, plus the cost of their first year's tuition and their travel budget. This change will apply to new study permit applications received on or after January 1, 2024.

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Will this change ensure the quality of educational institutions?

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According to the announcement based on the reforms introduced on October 27, 2023, the new framework for recognizing educational institutions that provide high quality services and support to international students remains in place and educational institutions are expected to accept only the number of students they can adequately support, ensuring a positive academic experience, along with appropriate accommodation options.

In addition, to ensure that designated educational institutions provide sufficient student support, Minister Miller affirmed the government's willingness to take the necessary actions, including limiting visas. Collaboration with provincial and territorial governments, educational institutions and other educational stakeholders will be essential to achieve this goal.

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‍Howdo temporary policy updates affect international students?

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In addition to the revised financial requirements, Minister Miller provided updates on three temporary policies that will have a significant impact on international students. These updates relate to:

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1. Off-campus work limits: the exemption of the 20 hours per week limit for off-campus work will be extended until April 30, 2024, which will allow international students to work more than 20 hours per week during classes. For more information on who can work off-campus, what the eligibility requirements are, and how to apply if you are a part-time student at a DLI, among others, you can visit the official government website here. 
2. Online study for post-graduation work permit: the facilitating measure allowing international students to count time spent studying online towards the duration of a future post-graduation work permit will continue for students who begin a program of study before September 1, 2024. Read more about this facilitating measure from the government website.
3. Post-graduation work permit extension: the temporary policy granting an additional 18-month work permit to post-graduation work permit holders that expires on December 31, 2023 will remain valid; however, this temporary policy will not be extended beyond that date.

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What is Canada's commitment to international students?

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In the face of these new revisions, as stated in the December 7, 2023 press release, next year, the Canadian government, in collaboration with partners, intends to implement specific pilot programs that will test new ideas aimed at helping underrepresented groups of international students continue their studies in Canada, thereby reaffirming the country's commitment to providing a supportive and inclusive environment for them, recognizing the crucial role they play in the country's social and economic fabric; and knowing that while this will help prevent student vulnerability and exploitation, the impact of the change may vary from applicant to applicant.

Minister Miller emphasizes the importance of the social, cultural and economic benefits that international students bring to Canada and that is why he reiterates, although it seems unconscionable for now, that the pending changes, especially the increase in the cost of living threshold, are intended to ensure that incoming students are in a stronger financial position to foster success in Canada.

In Immiland, we are convinced that this measure will favor you in the long term; we always insist that your immigration path to Canada must be completely legal and well planned, so, when in doubt about this issue, consult with your trusted immigration lawyer. We also recommend you to visit our website to learn about our many services for the immigrant, some of them are: advice and administration in a variety of Canadian visa types, educational advice, certified translation, among others. Ask for a consultation with one of our regulated consultants here.

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With love,

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Immiland