The minimum amount of money required in a bank account to demonstrate financial stability, also known as the cost of living requirement, has remained at CAD 10,000 since the early 2000s. However, due to the significant increase in housing expenses, it is now necessary to revise this amount upwards. Furthermore, the cost of living requirement will be adjusted annually in line with updates to the low-income cut-off (LICO) by Statistics Canada. The LICO represents the minimum income necessary for individuals to afford basic living expenses in Canada.

Immigration Minister Mark Miller highlighted the importance of making financial accommodations, emphasizing that this measure ensures that international students arrive fully equipped and protected, mitigating the risks of vulnerability and exploitation experienced by some in the past.

Miller has also given updates regarding three temporary policies that impact international students. The waiver extension on the 20-hour-per-week restriction for off-campus employment has been announced until April 30, 2024. This means that students can work more than 20 hours per week while their classes are in session. International students currently residing in Canada and those who have submitted their study permit applications before December 7, 2023 qualify for this extension.

Miller stated that attributing the housing crisis solely to international students would be an error. However, he also emphasized the importance of ensuring that these students are not invited to come to Canada without adequate support, including assistance in finding accommodation. He further expressed the expectation that learning institutions should only accept a manageable number of international students, ensuring they can provide housing or aid in securing off-campus housing.

Miller has expressed that Canada will consider assisting foreign individuals who are unable to pursue their studies in Canada due to the new income criteria.

According to a statement from Migrant Students United (MSU), an organization advocating for full immigration rights for both past and current international students, the increased financial requirement for study permits effectively establishes a limit and eliminates the opportunity for "prospective working-class students worldwide who will now face the challenge of finding an additional $10,000 within the next three weeks."

A former student who studied abroad expressed discontent with the decision to require proof of funds, stating that it is a heartless choice many of us cannot afford.

"When I arrived to pursue my studies in 2019, my family had to take out loans, which we are still obligated to repay with interest, to meet the $10,000 minimum. Increasing that amount to over $20,000 is heartless; it will crush the aspirations of countless students and families worldwide," shared Dev Kamboj, who attended Conestoga College .  
 

What is the purpose of this price change?

Immigration Minister Marc Miller revealed this update, signaling a response to the increasing cost of living in Canada. The previous financial requirement, established in the early 2000s, has been surpassed by the current economic climate.

Miller stated that  “International students contribute valuable cultural, social, and economic advantages to their communities. However, they have encountered difficulties in adapting to life in Canada. To address this, the cost-of-living threshold is being revised to give international students a better understanding of the actual expenses associated with living in the country.”  

He also stated “This action is crucial for their achievement in Canada. We are also investigating possibilities to guarantee that students discover suitable accommodations. These much-needed modifications will safeguard international students from precarious financial circumstances and exploitation.”