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Canada: Increased Cost-of-Living Requirements and Other Policy Updates for International Students Announced

December 8, 2023

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  • CanadaCanada

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At a Glance

  • Immigration, Citizenship and Refugees Canada (IRCC) has revised requirements and policies for international students.
  • Starting January 1, 2024, the cost-of-living requirement for study permit applicants will increase to CAN 20,635, up from the current CAN 10,000 for a single applicant.
  • Additionally, IRCC has updated temporary policies for international students that were set to expire at the end of 2023. These include:
    • Extension of the policy that allows eligible international students to work off-campus in Canada for more than 20 hours, until April 30, 2024; and
    • Extension of the policy allowing international students to not have the time spent studying outside of Canada deducted from the duration of their Post-Graduate Work Permit (PGWP), until September 1, 2024.

The situation

Immigration, Citizenship and Refugees Canada (IRCC) has revised several key requirements and policies for international students.

A closer look

Key changes include:

Change

Details

Impact

Increase in cost-of-living requirements for study permit applicants

 

  • The minimum amount of cost-of-living funds required from foreign nationals applying for study permits will increase to CAN 20,635 for new applications submitted on or after January 1, 2024.
  • The current amount for a single applicant is CAN 10,000.
  • According to IRCC, the current cost-of-living requirement, which has not been reviewed since the early 2000s, does not conform with the current cost of living, resulting in students arriving in Canada with inadequate funds to live there.
  • Cost-of-living funds for dependents will remain the same at CAN 4,000 for the first family member and CAN 3,000 for every additional accompanying family member.
  • IRCC will also apply the new threshold to the Student Direct Stream (a special study permit application process available to residents of certain countries).

 

  • Study permit applicants must prove they have the minimum required cost-of-living funds available at the time of the application. They can prove funds by way of bank statements, proof of student loans, or proof of funding (in the case of scholarships), among other documents. The cost-of-living funds do not include tuition or travel costs.The increased amount may decrease the number of individuals who qualify for a study permit in Canada.
  • The increased amount may decrease the number of individuals who qualify for a study permit in Canada.

Extension of the waiver on the 20-hour limit for off-campus work

 

  • Until April 30, 2024, international students in Canada with a study permit that allows off-campus work authorization will not be restricted by the 20-hour-per-week rule during academic sessions. The policy was originally set to end on December 31, 2023.
  • As a reminder, foreign nationals who stop studying or reduce their course load to study part-time generally are not eligible to work off-campus.

 

  • The measure benefits international students while helping address Canada’s labor shortages.

Extension of distance learning measures

 

  • International students who begin their study program at a Canadian college or university before September 1, 2024, will not have the time spent studying outside of Canada deducted from the duration of their Post-Graduate Work Permit (PGWP). However, they must complete at least 50% of the program inside Canada. This policy was originally set to end on December 31, 2023.
  • International students who will start their program of study on or after September 1, 2024, will again have the time spent studying outside of Canada deducted from the duration of their PGWP.

 

  • This measure was initially implemented in 2020 in response to travel restrictions during the COVID-19 pandemic but will now benefit international students who need to be outside Canada at times.

End of 18-month permit extension policy for PGWP holders

 

  • The policy that allows foreign nationals in Canada whose PGWP expired in 2023 to apply for an open work permit extension or a new open work permit valid for up to 18 months (which is not possible under regular immigration rules), will expire on December 31, 2023, as intended. The policy will not be extended.
  • As a result, only foreign nationals with a PGWP expiring up to December 31, 2023, remain eligible to apply.

 

  • The policy, which has been extended three times, provided more time for eligible foreign nationals to access pathways to qualify for and obtain permanent residence while contributing to the Canadian economy.
  • Foreign nationals will now need to find other available pathways to remain and work in Canada after their PGWP expires as this option will no longer be available.

Background

These measures are part of IRCC’s ongoing challenge of balancing the goal of making Canada a leading destination of choice for students around the world and addressing labor shortages in the country, while simultaneously ensuring that learning institutions set a higher standard of support for international students.

The measures follow other recently announced reforms to the International Student Program with similar aims.

Looking ahead

According to IRCC, the cost-of-living threshold will continue to be adjusted annually in line with the Statistics Canada low-income cut-off (which represents the minimum income necessary to ensure that an individual does not have to spend a greater than average portion of income on necessities).

IRCC also announced that in 2024, it intends to implement targeted pilot programs to help international students pursue their studies in Canada.

Fragomen will report on relevant developments.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].

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