Federal government raises cost-of-living requirement for international applicants

On December 7, federal Minister of Immigration, Refugees, and Citizenship Marc Miller introduced revised requirements to the international student program. He announced that the government will raise the cost-of-living financial requirement for prospective international students. According to Miller’s announcement, this is to financially prepare them for life in Canada.

As of January 1, 2024, study permit applicants must show they have access to $20,635, in addition to paying for tuition and travel costs. This is the first update to the financial requirement since the early 2000s, when it was $10,000.

Going forward, they will adjust the amount annually based on changes to the low income cut-off (LICO) provided by Statistics Canada. LICO is a benchmark for national living costs. It represents the minimum income necessary to ensure that an individual doesn’t spend more than an average portion of their income on necessities.

The federal government is also extending the waiver on the 20-hour work week limit until April 30, 2024. This allows current international students without an employment visa to work over 20 hours a week off-campus. As well, the waiver applies to study permit applicants who have already submitted an application prior to December 7.

Lastly, Miller threatened to cap visas in provinces where designated learning institutions (DLIs) don’t provide adequate student supports, such as housing. The changes outlined in Miller’s announcement followed reforms to the international student program, which were introduced on October 27.

“A student who arrives without adequate funds is more vulnerable to being exploited,” IRCC says

The Gateway reached out to Immigration, Refugees, and Citizenship Canada (IRCC) media relations for comment from Miller. On behalf of the IRCC, media relations provided a written statement. 

They said the cost-of-living requirement intends to “protect students who arrive in Canada without enough money to support themselves.”

”International students choosing to come to this country need to be aware of the costs associated with life in Canada,” the statement read. “A student who arrives without adequate funds is more vulnerable to being exploited by an employer. Or might feel forced to accept a poor housing situation.”

According to IRCC, the prior financial requirement hasn’t kept pace with changes to the cost of living in Canada. This has led to “financial strain for students who arrived and found that their funds were not sufficient.”

“To address these concerns and protect students from situations of financial vulnerability, IRCC is updating this amount to reflect the cost of living in Canada.”

Changes “may inadvertently prioritize wealth over merit,” ISA co-president says

The Gateway reached out to the International Students’ Association (ISA) for comment on the changes.

In a written statement, ISA co-president Amirali Bigleri said the cost-of-living requirement poses a financial barrier for international students.

“This could disproportionately affect students from lower-income backgrounds and countries with weaker currencies, limiting the diversity and inclusivity of the international student body.”

According to Bigleri, University of Alberta international students have voiced concerns within their academic constituency regarding the program’s implications.

“This policy may inadvertently prioritize wealth over merit, exacerbating stress-induced academic detriment,” Bigleri said. “It could also skew the competitive equilibrium of university life. From admissions to professional development opportunities, potentially marginalizing those of modest means.”

Bigleri also called on Minister of Advanced Education Rajhan Sawney to prioritize a welcoming strategy for prospective international students. This includes lobbying for additional administrative support and financial aid options, and offering workshops on financial literacy. As well as “ensuring that the voices of international students are heard and considered in policy discussions.”

“While financial sustainability is important, educational institutions and governments should strive to balance this with the need to remain accessible and welcoming to international students,” Bigleri added.

UASU Vice-president (external) expresses interest in “robust exemptions program”

According to U of A Students’ Union (UASU) Vice-president (external) Chris Beasley, raising the cost-of-living financial requirement means international students will get a “clearer picture of what costs look like in Canada.”

”Costs are incredibly high,” Beasley said. “And we don’t do [international students] any services by pretending that they’re not.”

However, Beasley also voiced concerns surrounding international students’ financial capacity impeding their entry into Canadian post-secondary institutions. As such, he expressed interest in the development of a robust exemptions program for students.

“How do we create exemptions, and how do we recognize that there’s nuance in the system? We want an older brother or sister and a younger brother [or] sister to be able to go to the same university,” Beasley said. “We need to evaluate whether this change has any effect on the regional diversity that we receive. And who’s able to front that much cash.”

BoG says cost-of-living requirement is a “great change”

At the December 8 Board of Governors (BoG) meeting, the learning, research, and student experience committee (LRSEC) discussed developing a foundation program to boost international enrolment. A foundation program is a transition-year program for students who “do not yet meet the competitive entry criteria for direct admission to their desired program, because of a specific deficiency,” LRSEC’s report stated. 

According to Melissa Padfield, deputy provost (students and enrolment), members were “very pleased to see [Miller’s] announcement.”

“That’s great, because it means students have a more realistic viewpoint of what it takes to financially manage in Canada.”

The change would also help bolster recruitment to the foundation program, she said.

“We don’t see it as a hindrance at all in our recruitment. In fact, we see it as a great change that will actually empower this kind of programming,” Padfield said. “And allow us to be more successful and have much less risk to the university, and to the students that participate.”

UASU lobbies to lift cap on work limit for international students permanently

As a member of the Canadian Alliance of Student Associations (CASA), the UASU was involved in conversations regarding the revisions to the international student program. In particular, they lobbied for permanently waiving the 20-hour weekly work limit for international students.

“It remains an ongoing priority that the cap be permanently lifted, so international students enjoy the same employment flexibility that domestic students get,” Beasley said.

According to Beasley, the greater Canadian population has been “fed misinformation about international students, more than ever before.”

”International students are now being associated with a housing crisis they didn’t create. They’re being associated with fraudulent admission acceptances, even when that’s a tiny percentage of the situation. Now, they’re being associated with job shortages.”

Lastly, Beasley said he was worried about any cap on international work hours returning after the end of April. International students are “already vulnerable to exploitation” in dealing with immigration issues and needing a host of services, he said.

“I’m worried about the students who will still need to work 40 or 50 hours a week, who will be unable to do so legally [and] will do so under the table for cash. Who will do so in precarious employment or employment without any protections,” Beasley said.

“I think that’s really terrifying. Especially for international students who know that any violation of law might result in the revocation of their student visa.”