Canada Raises International Student Financial Requirement to $20,635 for 2024

Canada has announced an increase in the cost-of-living financial requirement for incoming international students, effective January 1, 2023.

The policy shift was announced by Immigration Minister Marc Miller, who revealed that the new regulation will more than double the current financial requirement, affecting prospective students worldwide, especially those coming from India.

The updated financial criteria will apply to all students submitting study permit applications on or after January 1, Erudera.com reports.

“Moving forward, this threshold will be adjusted each year when Statistics Canada updates the low-income cut-off (LICO). LICO represents the minimum income necessary to ensure that an individual does not have to spend a greater than average portion of income on necessities,” the government said.

Under the new regulation, incoming students will be required to prove they have CA$20,635 in disposal, a substantial increase from the existing requirement of CA$10,000, which has been in place for two decades. This financial requirement is in addition to the expenses associated with travel and tuition.

According to the government, such a change was necessary because the current financial requirement did not keep up with the rising cost of living in Canada, meaning students arriving in the country often found out that their funds were insufficient to cover their living expenses while in the country.

“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,” Minister Miller said.

The government pointed out that before the September 2024 semester, Canada will take several steps, including limiting the number of issued visas, to ensure that designated learning institutions provide sufficient support to their students.

India, as one of the leading countries of origin of international students in Canada, is especially expected to be affected by this policy change.

Last year, India secured the first spot on the list of top 10-origin countries for study permit holders in Canada, with a total of 319,000 students, accounting for nearly 40 percent of the international student population.

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Additionally, Canada has become a popular destination for people from Punjab, who choose the country for both their studies, work or other purposes.

The decision to double the financial requirement for international students is seen as a careful measure to ensure incoming students have the necessary funds to support themselves while studying in Canada.