To ensure that foreign students are monetarily prepared for the Canadian lifestyle, the Minister of Immigration, Refugees, and Citizenship, Marc Miller, announced that, as of January 1, 2024, the cost-of-living financial criterion for study visa applicants would be heightened.
In 2024, an applicant will have to prove that they have $20,635, equivalent to 75% of LICO, plus the cost of their first year’s tuition and transportation. New applications for study permits submitted on or after the 1st of 2024 will be subject to this modification. This financial modification will, however, have a significant impact on international students.
Possible Impact of the New Canadian Funding Guidelines on Foreign Students
The following are possible effects the new financial policy will have on international students:
Opportunities for education and employment:
- Low student pool: Fewer foreign students may submit applications for enrollment in Canada because of the more stringent financial conditions. This could harm Canadian universities, harming their reputation abroad, research possibilities, and cultural diversity.
- Reduced skill acquisition: Canada depends on highly qualified individuals from a range of disciplines to meet its labor needs, one of which you will find when you click here. Reduced enrolment of foreign students could restrict the nation’s ability to recruit talented individuals from various backgrounds, affecting several industries and possibly limiting economic progress.
- Effect on Canada’s economy: Through their tuition payments, living expenses, and business endeavors, international students make a substantial economic contribution to Canada. A reduction in their population may affect several industries, including housing, retail, hospitality, and education.
Convenience and fairness:
- Reduced scholarship opportunities: Students may be forced to depend more on financial aid and scholarships because of rising debt. However, the abrupt increase in demand may exceed the capacity of current scholarship programs, significantly restricting accessibility for students with financial difficulties.
- Restricted accessibility: Students from socioeconomically disadvantaged backgrounds face a major financial hurdle due to the more than doubling of the required funds (from $10,000 to $20,635). This might significantly impact students from marginalized communities and developing nations, which could impede Canada’s efforts to promote diversity and inclusivity in its educational system.
- Geographical differences: The housing cost in the various Canadian cities and provinces varies. A consistent financial requirement may overlook these differences, making it more difficult for students to budget their money and disadvantage those who want to attend more expensive universities.
Personal and financial well-being:
- Higher level of financial stress: Increased levels of anxiety and stress may result from the increased financial proof required, especially for students who find it difficult to get enough money. Their general well-being and academic performance may suffer due to this stress.
- Higher exploitation risk: Students desperate to make ends meet may be more open to being taken advantage of by fraudulent employers, property owners, or lenders. Furthermore, the stress of finding a job besides studying could result in academic neglect, affecting learning results.
- Family support: Many students may need to rely more significantly on family support to satisfy the new financial criteria. Families may feel under strain, and students without strong financial support systems may have fewer options for higher education.
Possible Solution to the Negative Effects
Here are possible solutions the Canadian government should consider due to the impact of the new Canadian funding guidelines:
Implementing differentiated requirements
Putting in place a tiered structure according to criteria including program length, location, and academic standing could increase flexibility and improve equity in the funding requirements.
The need for consistent review
Because it is based on one cost-of-living standard, the new financial criteria may not adequately account for regional variations in living expenses. Continually evaluating and modifying the criterion by local data could guarantee increased accessibility and fairness.
Support resources and services
Strong support services and tools, including budgeting advice, job placement help, and workshops on financial literacy, could enable international students to manage their money and navigate the labor market properly.
Increase scholarship and financial aid opportunities
Increasing the financial assistance and scholarship options available to international students from different backgrounds could lessen financial hardship and foster inclusivity.
Limit Waiver for Working Hours Extended Until April
While Minister Miller’s announcement focused on the increased financial prerequisite, he also gave some pertinent updates on a few other short-term actions that will directly affect students.
When the IRCC first made this announcement in the fall of 2022, it stated that foreign students who had a study visa that allowed them to work off-campus for more than the normal 20 hours per week would be allowed to do so starting on the 15th of November, 2022, and will continue through 2023.
This temporary waiver has been increased to April 30, 2024, from its original expiration date of December 31, 2023. This extension is valid for new applicants who applied for their study visa from December 7, 2023, and foreign students currently enrolled in Canada.
Conclusion
These funding guidelines will negatively affect foreign students, but these guidelines are certainly for the betterment of international students’ well-being.
