The Financial Impact of Studying in Canada on International Students
Studying in Canada has a significant financial impact on international students encompassing a unique blend of expenses and benefits that can shape a student’s academic and professional journey. And while the initial expense of studying in Canada may seem overwhelming, the long term benefits often outweigh the costs. Here's a more detailed overview:
Tuition and Fees
High Tuition Costs: International students in Canada typically pay higher tuition fees than domestic students. Depending on the program and institution, these fees can range from $20,000 CAD to over $70,000 CAD per year. This represents a substantial financial commitment. Fortunately, many universities in Canada offer sizable international student entrance scholarships to offset these expenses. Examples of these prestigious scholarships are the ones offered by Trent University or the University of Alberta.
Additional Fees: Besides tuition, international students often face additional costs, such as application fees, health insurance, and student service fees, taxes such as GST and PST (Provincial Sales Tax). A province that offers free health care insurance to international students is the province of Alberta, home to the MacEwan University, NAIT and the University of Alberta. It is also PST exempt as well.
Living Expenses
Housing is a major expense. Students living in urban centers like Toronto or Vancouver might pay up to $2,500 CAD monthly for rent. Some provinces and cities are much cheaper so it is worthwhile for a student to shop around, not only for universities but also for the city to live in. An example of a cheaper city is Prince George, BC, home to the University of Northern British Columbia where off-campus accommodations are about $1000 CAD cheaper. Sharing accommodations make for much cheaper living, but international students should live on campus for the first year so they can make friends and find possible roommates if they decide to live off-campus in the following years. International students will find that living in university residence for the first year can be cheaper than living off-campus.
In addition to renting an apartment, international students need to factor in food, transportation, and other daily expenses. The Canadian government has set the cost of living at $20,635 CAD but depending on the city and province that houses your university, cost of living might not be that high.
Now that we have covered the main expenses an international student will need to budget for, let’s take a look at some of the benefits that will offset your investment.
Employment Opportunities
Part-time Work: Many international students work part-time to offset their expenses. The Canadian government, effective September 2024, has allowed international students to work up to 24 hours per week during the academic year and full-time during scheduled breaks.
Paid co-op programs and internships: They offer students hands-on experience in their fields while earning an income. They enhance academic knowledge and skills, improving employability after graduation. Many Canadian institutions connect with industries, providing placements in sectors like technology, healthcare, and engineering. These programs help students build networks and gain a competitive edge in the job market, making them attractive to future employers. The University of Waterloo has the #1 Co-op Work Experience program in Canada.
Post-Graduation Work: Canada offers a Post-Graduation Work Permit (PGWP), allowing students to work in Canada for up to three years after completing their studies, which can provide financial benefits and valuable work experience. International students may then become eligible for PR (Permanent Residency).
Long-Term Financial Benefits
PR Pathways: Studying in Canada can be a pathway to Permanent Residency (PR). As a PR, former international students can access healthcare and other social services, and eventually apply for Canadian citizenship. Some provinces, such as the Atlantic provinces offer shorter PGWP to PR pathways than other provinces through their Atlantic Immigration Program. International students interested in a fast pathway to Canadian residency might want to consider studying at UNB, St Francis Xavier University or Memorial University.
Higher Earnings: Graduates of Canadian institutions often earn higher salaries compared to those who did not study abroad, especially if they stay in Canada or work for international companies. Even graduates from a polytechnic college like NAIT can earn upwards to $70,000 CAD annually, especially for those that graduate with an engineering diploma.
Investments vs. Financial Benefits
If international students take four years of expenses to study in Canada and consider a 35 year career, they will net far more than they invested into their education. Assuming your starting salary is around $55,000 CAD and your initial Canadian education cost is around $400,000 CAD, taking into consideration salary increases and promotions over a 35 year career, your net income could potentially be upwards of $1,500,000 CAD.
Yes, it’s expensive to study in Canada, but overall, while studying in Canada presents a substantial financial commitment for international students, it also offers potential long-term economic benefits, including career opportunities and pathways to residency.
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