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Canada’s 2024 GIC Game-Changer: Canada Increases GIC Amount to $20,000, Significantly Impacting International Students

By January 25, 2024 February 8th, 2024 No Comments

Canada has long been welcoming to international students pursuing higher education owing to its diversity and multiculturalism. Students from all over the world find themselves attracted to the nation based on its reputation for stellar education, cultural fusion, and high standard of living. Unfortunately, many aspiring students have found it difficult to afford the high expense of life and education in Canada, particularly when it comes to fulfilling the strict financial standards set by the Canadian government.

A new standard for international education has been set, with Canada increasing the amount of the Guaranteed Investment Certificate to $20,000. This spirited initiative drastically changes the country’s commitment to shielding students from unanticipated financial troubles while they are studying in Canada.

Guaranteed Investment Certificate — Understanding the Intention Behind It

Assuring that international students have the funds to cover their living expenses while enrolled in classes is the ultimate goal of the Canadian government’s GIC program. It is, essentially, a type of secure investment account that is necessary to guarantee that students have access to a specific amount of money to cover their living expenses while they are pursuing their education in Canada. A minimum amount of money must be deposited into a Canadian bank account by students taking part in this program. They can then use a portion of that money each month to cover living expenses and other educational costs. The students’ financial security and their ability to support the local economy via their spending are two benefits of this system for both the students and the Canadian economy.

Increased GIC — The Positive Implications on International Students

  • Greater Financial Stability: Offering international students more financial stability is the most significant benefit of this enhanced GIC amount. Access to a higher amount through the GIC guarantees that students can easily fund their housing, meals, transportation, and other necessary fees without financial pressure, especially with living expenses on the rise.
  • Greater Possibilities: This move presents potential options for students who were previously discouraged from completing their studies in Canada because of financial limitations. The higher GIC amount makes studying in Canada an attractive option for more potential students from diverse socioeconomic backgrounds. By promoting diversity on Canadian campuses, this inclusion enhances the learning environment and builds cross-cultural understanding among students from different origins.
  • Higher Standard of Living: An increased GIC amount corresponds to an upgraded standard of living for overseas students. It helps them to fully enjoy their stay in Canada by allowing them to interact with the locals and take advantage of cultural events. This enriches their individual experiences while also strengthening Canada’s multicultural fabric.
  • Canada’s Global Reputation: This bold step establishes Canada as a leader in providing assistance to international students. As word gets out about this rise, more students will start looking at Canada as their first choice for a higher education destination. The improved GIC further solidifies Canada’s standing as a hub for international education and speaks well of its dedication to inclusiveness and diversity.

Increased GIC — The Challenges 

  • Effect on Affordability: The increased GIC amount might raise questions about how affordable education in Canada is in general. It is imperative that decision-makers and academic institutions keep looking for ways to provide education that is both affordable and up to par.
  • Preparation of Financial Institutions: Expanded financial assistance and advice for overseas students is necessary from Canadian institutions, governments, and agencies. Reducing financial constraints and ensuring equitable opportunities for all worthy students can be achieved via the use of grants, scholarships, and tuition exemptions. Further resources that can help students manage their money and make prudent financial decisions throughout their academic careers include workshops, financial literacy classes, and counselling services. Moreover, in order to avoid delays for students, financial institutions in charge of overseeing the GIC program must guarantee smooth processing and be sufficiently ready for the rise in demand.
  • Communication and Awareness: Clear communication and awareness efforts are crucial to informing existing and potential international students about the changes to the GIC program. This guarantees that everyone is informed and equipped to make appropriate plans.

International students intending to study in Canada may find their options considerably limited by the rise in the GIC amount. This occurs as a result of the threshold amount being raised by more than double its prior value. The sum will be increased from $10,000 to $23,635 in this transaction.

Moreover, this sum will likely see additional growth in 2025. In order for the students to comfortably study in Canada and keep up with the rising cost of living, they must now create new financial plans and raise additional money.

Conclusion

Canada has always adjusted its immigration laws to meet the demands of its employment market. In times of labour scarcity, like the pre-Covid era, rules were loosened to draw in more students. However, the government’s recent change in stance is reflected in the tightening of the financial criteria, which may have an effect on the entry of international students.

To sum up, the move by Canada to raise the GIC to $20,000 substantially altered the playing field for international students wishing to enrol in Canadian universities. Greater financial security and a more intensive educational experience are made possible by the greater financial requirement, which also promotes personal development and future economic contributions to Canada. But in order to guarantee that all students, regardless of their financial situation, may fulfil their aspirations of studying in Canada and contributing significantly to society, stakeholders must offer enough assistance and direction. If you are an international student looking to study in Canada, feel free to contact Immigrationway. We help students choose and apply to the appropriate college and programme that can act as a springboard for their global career.