New financial requirement to study in Canada
Dear Miss Powell,
I READ your recent article about changes to the study permit application process. Thank you for that. I noticed, however, that you didn’t say anything about the funds required. Has that changed as well?
A friend of mine had her application rejected because she didn’t have enough funds. I was surprised as she had paid her tuition fees and had another C$12,000 for living expenses. I thought that would be enough. I need your guidance on how much money I should show for doing a one-year post-graduate diploma. I plan to take my daughter with me. Thank you in advance for selecting my question for your next article.
LB
Dear LB,
The minister of immigration for Canada announced that effective January 2024, the costof-living criterion for international students has increased to reflect the current economic trends in Canada and to ensure that students are prepared to face the reality of the actual cost of rent, food, transportation, and incidentals in Canada.
Therefore, students will need to ensure that that they are able to pay tuition fees and provide proof that they have sufficient funds to complete the programme of study without running into difficulties before the programme has been completed.
The required amount depends on the number of persons that will be accompanying you and based on the Canadian Low Income Cut Off (LICO) table. Statistics Canada publishes an annual LICO table that represents the poverty line in Canada’s urban areas with a population of half a million or more. The government uses this as a guide to determine the amount of money an international student and new immigrants will need to be successful in Canada.
REQUIRED FUNDS
Using the LICO as a guide, the government announced that a single applicant who is planning to study in any province except Quebec will be required to show proof that he has a minimum of C$20,635, or 75 per cent of (LICO), in addition to the first year of tuition and travel expenses. This is the first time that the government has increased the requirement since the early 2000s.
If you intend to come to Canada with your child, then you will be required to show a minimum of C$25,690 to cover living expenses, plus tuition and travel expenses. Additionally, if you will require daycare expenses, you should do some research about childcare costs so that you make allowance for these expenses and not be blindsided by this cost, which can be significant.
An international student who is planning to come to Canada with a spouse and a child, or two family members, and plans to spend a year in any Canadian province other than Quebec will need proof of a minimum of C$31,583 for living expenses.
Similarly, for a family of four, you need a minimum savings of C$38,346; family of five – a minimum of C$43,492 for living expenses. The amount increases by approximately $6,000 for each additional family member that will accompany you.
If your programme of study is expected to last more than one year, you must provide details of how the balance will be paid. You will need to provide proof of savings and investments or if someone else will be sponsoring your studies, such as your parents. They will need to provide their proof of income, savings, and investments, which is sufficient to cover their personal living expenses as well as yours.
Although students are permitted to work on a part-time basis during the school term, or full time during the holidays, there is no guarantee that you will get a job to supplement your savings. Therefore, you cannot state that you plan to work part-time to make up any shortfall. If you fail to prove that you have the financial resources to complete your programme of studies and cover your living expenses, your application will be rejected.
ACCEPTABLE PROOF
Every applicant must provide acceptable proof that you will be able to support yourself and the family members who come with you for the entire duration of your studies in Canada. You can demonstrate that you have the required funds by providing your bank statements for the last four months. If your parents are funding your education, then your parents will need to provide proof of source of income or employment and their last four months’ bank statements.
You may provide a statement of a Canadian bank account in your name if you have transferred money to Canada specifically for this purpose. Other acceptable proof are a Guaranteed Investment Certificate from a participating Canadian financial institution; proof of a student or education loan from a bank or reputable organisation or a bank draft in your local currency that can be converted to the required Canadian dollars. If you have a scholarship, or if you are accepted into a Canadian-funded educational programme, then you may provide an official letter from the institution to demonstrate that your tuition and living expenses will be covered for the entire programme.