International students pursuing higher education in Canada are facing significant financial challenges due to soaring living expenses. While Canada has been a popular destination for international students, the rising cost of living is making it increasingly difficult for them to continue their education and consider staying in the country after graduation.
Financial Strain on International Students:
- Damanpreet Singh, a recent graduate and representative for international students, shared his experience of witnessing his daily expenses nearly double since moving to Canada two years ago. Singh highlighted the increase in rent costs, from $350 per month initially to $500 per month, as well as higher grocery expenses, from $150 to $250 per month for the same amount.
- International students are required to show proof of $10,000 in their bank accounts upon arrival, in addition to paying annual tuition fees ranging from $30,000 to $50,000. However, many students and advocates argue that this minimum Guaranteed Income Certificate (GIC) is insufficient to cover the current cost of living.
Impact on Staying in Canada:
- The high cost of living in Canada is discouraging international students from considering permanent residency and citizenship in the country after graduation. A survey found that 25 percent of international students plan to leave Canada in the next 18 to 24 months, citing the cost of living as a top concern.
- Canada’s inflation rate reached a 30-year high at 6.7 percent, further exacerbating financial pressures on international students. Additionally, they face steep tuition fees, often up to five times higher than those paid by Canadian students.
- The financial realities are causing some students to reconsider their plans to stay in Canada after completing their studies. While they see a future in Canada, the cost of living and tuition fees are creating challenges.
Advocating for Change:
- Advocates, including Sandeep Singh, a marketing director and director of Intake Abroad, are calling for an increase in the Guaranteed Income Certificate amount, suggesting it should be raised to $20,000 to better align with the current cost of living.
- The federal government has not updated its cost-of-living figure for international students since 2015, leaving students struggling to cover their expenses with outdated financial requirements.
- The potential departure of international students could have significant impacts on Canada’s labor market, as they have been viewed as a key solution to filling labor shortages in the country.
The Decision to Stay:
- International students are torn between their desire to stay in Canada and the financial challenges they face. Their decision to remain in the country after graduation often hinges on securing a job that can sustain them in Canada’s costly economy.
- While many international students are passionate about staying in Canada, the cost of living is a major factor influencing their long-term plans.
In summary, the rising living costs in Canada are creating financial hardships for international students, impacting their decisions to stay in the country after completing their studies. Advocates are calling for policy changes to better support these students and help them pursue permanent residency and contribute to Canada’s workforce.
