Immigration, Refugees and Citizenship Canada (IRCC) will adjust the cost-of-living allowance for study permit applicants effective January 1, 2024.

Since the early 2000s, when the financial requirement for an individual applicant was set at $10,000, this is a significant update. The new cost-of-living requirement will be $20,635, in addition to the first year of tuition and travel costs.

The IRCC recognizes that the previous financial requirement is outdated and no longer reflects the actual cost of living for students in Canada. The increase is intended to prevent student vulnerability and exploitation. IRCC plans to implement targeted pilot projects to assist underrepresented cohorts of international students to study in Canada to address the challenges of this adjustment.

Additionally, IRCC intends to adjust the cost-of-living requirement annually to align with Statistics Canada’s low-income cut-off (LICO) and remain responsive to economic conditions.

For international students, this means that the financial requirements will be closely linked to the cost of living in Canada and will be adjusted to reflect the annual changes in the LICO. These adjustments ensure that the cost-of-living requirement accurately reflects the economic reality in Canada.