Doubling the financial requirements for upcoming study permit applicants
The minister announced that the cost-of-living financial criterion for study permit applicants will be doubled beginning January 1, 2024, to ensure that international students are financially prepared for life in Canada.
Canada study permit applicants demonstrates cost-of-living mostly with GIC (Guaranteed Investment Certificate) of $10,000.
This requirement will now be more than doubled to $20,635, effective for any new study permit applicants after January 1, 2024.
Furthermore, this threshold will be updated annually when Statistics Canada changes the low-income cut-off (LICO).
LICO is the minimal income required to ensure that an individual does not have to spend more than the average portion of their income on needs.
Since the early 2000s, when it was set at $10,000 for a single applicant, the cost-of-living threshold for study visa applicants has remained unchanged.
As a result, the financial need has not kept up with the cost of living over time, and students arrive in Canada only to discover that their money is insufficient.
In 2024, a single applicant must show that they have $20,635, or 75% of LICO, in addition to their first year of tuition and travel expenses.
This modification will be effective for new study permit applications received on or after January 1, 2024.
Canada doubled this to help avoid student vulnerability and exploitation.
Next year, IRCC will also launch focused pilots with partners to test innovative approaches for assisting underrepresented cohorts of international students to pursue their studies in Canada.