Since the early 2000s, the cost-of-living requirement has remained stagnant at USD 10,000 for a single applicant. However, now the threshold will now be raised to USD 20,635, representing 75 per cent of the low-income cut-off (LICO).

New Delhi: Canada’s Minister of Immigration, Refugees and Citizenship, Marc Miller said Ottawa will require foreigners applying to study in Canada to have double the amount of funds currently required. This move is aimed at enhancing the financial preparedness of International students and are meant to ensure international students aren’t left vulnerable to sketchy employers and unable to afford life in Canada, according to Miller. “Clearly, we have become a country that has been targeted for abuse and exploitation by some unsavoury actors,” he said.

The changes, set to take effect from January 1, 2024, include a substantial increase in the cost-of-living financial requirement for study permit applicants.

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,” said Miller.

Miller also threatened to cap visas in provinces that do not help house students or who won’t shut down educational institutes that he argues shouldn’t be operating. “There are, in provinces, the diploma equivalent of puppy mills that are just churning out diplomas, and this is not a legitimate student experience,” Miller said at a news conference. “There is fraud and abuse and it needs to end.”

Since the early 2000s, the cost-of-living requirement has remained stagnant at USD 10,000 for a single applicant. However, in response to the evolving cost of living, the threshold will now be raised to USD 20,635, representing 75 per cent of the low-income cut-off (LICO). This adjustment, to be updated annually with Statistics Canada’s LICO, aims to ensure that international students are adequately prepared for the financial demands of life in Canada, the release also said.

The announcement follows the October 27, 2023, reforms to the International Student Programme, introducing a new framework to recognise learning institutions providing top-quality services and support, including housing. Learning institutions are expected to accept only the number of students they can adequately support, it added.

Changes to employment rules

Miller said Ottawa is reviewing how many hours students should be allowed to work in Canada, saying that capping it to 20 hours a week would be “on the draconian end of the spectrum” but allowing 40 working hours per week would give people reason to come to Canada and not focus on their studies.

The advocacy group Migrant Students United urged Ottawa to come up with clear rules.

“Federal immigration policy is a roller-coaster,” national organizer Sarom Rho said in a statement.

“We don’t need monthly improvisations and chaotic twists that let exploitation and abuse continue. We will continue to speak up for stable, fair rules and permanent residency for all.”

Immigration, Refugees and Citizenship Canada said in a press release it is considering pilot programs for “underrepresented cohorts of international students” who are unable to study in Canada as a result of the new income requirements.