Changes to federal policy aimed at preventing exploitation of international students

The federal government is extending the 40-hour-per-week work allowance for international students until April, and will increase the financial threshold required by international students to prove to post-secondary institutions that they can afford life in Canada.

Those were just two of the details to come out of an announcement this morning by federal Minister of Immigration, Refugees and Citizenship Marc Miller to address concerns about an influx of international students in several communities across Canada and the struggles and exploitation some are facing as they run short of finances.

Miller provided an update on policies affecting international students that were all set to expire at the end of 2023, including the waiver on the 20-hour-per-week limit to April 30, 2024.

International students already in Canada, as well as applicants who have already submitted an application for a study permit as of December 7, 2023, will be able to work off campus more than 20 hours per week until that time.

"We continue to examine options for this policy in the future, such as expanding off-campus work hours for international students to 30 hours per week while class is in session," Miller said.

Miller also announced today that starting January 1, 2024, the cost-of-living financial requirement for study permit applicants will be raised from $10,000 to $20,635.

That represents a 75 per cent increase in the low-income cut-off (LICO), and must be in addition to a student's first year of tuition and travel costs.

Moving forward, Miller said the threshold will be adjusted each year when Statistics Canada updates the LICO to ensure that an individual does not have to spend a greater than average portion of income on necessities.

"This measure is key to their success in Canada," Miller said in the release. "We are also exploring options to ensure that students find adequate housing. These long-overdue changes will protect international students from financially vulnerable situations and exploitation.”

The cost-of-living requirement for study permit applicants has not changed since the early 2000s, when it was set at $10,000 for a single applicant.

Miller admits the financial requirement hasn’t kept up with the cost of living over time, resulting in students arriving in Canada only to learn that their funds aren’t adequate. 

"While this will help prevent student vulnerability and exploitation, we recognize that the impact of the change could vary depending on the applicant," he said in the press release. 

Ahead of the September 2024 semester, the ministry says it is prepared to take necessary measures, including limiting visas, to ensure that designated learning institutions provide adequate and sufficient student supports as part of the academic experience.

"Next year, in collaboration with partners, we intend to implement targeted pilots that will test new ideas aimed at helping underrepresented cohorts of international students pursue their studies in Canada," the release said.

The announcement follows reforms made to the International Student Program announced on Oct. 27, around a new framework to recognize learning institutions that provide top-quality services and support, including housing, to international students.

"We expect learning institutions to only accept the number of students that they can provide adequate supports for, including housing options," Miller said.

"In welcoming international students, we have a responsibility to make sure that students are supported when they come to our country."

Also changing is the amount of distance learning international students can count towards the length of a future post-grad work permit, and another extension has been granted to the 18-month work permit given to eligible post graduates who apply by Dec. 31.

The policies were introduced as temporary measures during the pandemic and during post pandemic recovery, says the release. 

“International students provide significant cultural, social and economic benefits to their communities, but they have also faced challenges navigating life in Canada," Miller said. "These long-overdue changes will protect international students from financially vulnerable situations and exploitation.”

The ministry says international education accounts for more than $22 billion in annual economic activity, greater than Canada’s exports of auto parts, lumber or aircraft, and supports more than 200,000 jobs in Canada.