International Students In Canada: Who Pays For Their Education?

International students are a vital part of Canada's immigration strategy, with many going on to become permanent residents and contributing to the economy with their skills. However, there is some debate about whether international students are subsidized by the Canadian government in the same way that domestic students are. While international students can access scholarships and work placements, their tuition fees are not subsidized, and they pay higher true tuition fees than domestic students.

International students pay unsubsidized tuition fees

International students in Canada pay unsubsidized tuition fees, which are higher than those paid by domestic students. While Canadian universities are subsidized by the government through tax dollars, this does not extend to international students. The rationale is that the government investment in domestic students will pay off through a more skilled workforce and higher productivity.

The cost of living for international students in Canada can vary significantly depending on location and lifestyle choices. On-campus accommodation, for example, can range from CAD 3,000 to 7,500 per year, while off-campus housing costs can be much higher, especially in bigger cities like Vancouver, Toronto, and Calgary. International students typically pay higher tuition fees, which are a lucrative revenue source for Canadian post-secondary institutions.

Some argue that international students should not subsidize domestic students, as they are not Canadian taxpayers and do not benefit from those tax dollars. Additionally, the subsidized student program aims to encourage Canadians and permanent residents' children to pursue education. However, it is worth noting that international students contribute significantly to the Canadian economy, and their education in Canada can be a pathway to permanent residency and citizenship.

While international students do not receive subsidized tuition fees, there are other financial support options available. For example, the Canadian government offers scholarships to international students through the Study in Canada Scholarships program, providing short-term exchange opportunities. Additionally, Global Affairs Canada participates in major international scholarship programs, offering scholarships to international students through Canadian governments, foreign governments, non-governmental organizations, and international organizations.

In conclusion, while international students in Canada pay unsubsidized tuition fees, there are alternative financial support options available, such as scholarships. The high cost of living and tuition in Canada is offset by the country's strong reputation as a global place of learning, providing a pathway to permanent residency and citizenship.

International students as a source of revenue for universities

International students are a significant source of revenue for Canadian universities, and their importance to the Canadian economy has grown over the years. In 2022, international students contributed approximately $37.3 billion to the Canadian economy, with Ontario and British Columbia attracting the highest number of international students and, consequently, the highest expenditure.

International students' tuition fees have risen at twice the rate of hikes in domestic students' fees, and these fees now equal 12% of operating revenue and 35% of all fees collected by institutions. This has almost seamlessly covered the decline in government funding for post-secondary education. For instance, between 2009-10 and 2015-16, there was a $1.5 billion increase in total income from international students, which almost exactly offset the $1.7 billion fall in government funding.

The revenue generated from international students' tuition fees has become so significant that some major institutions, such as the University of Toronto, now receive more money from international students than they do from operating grants from their provincial governments. This has led to concerns about the potential negative consequences of this growing reliance on international students as a source of revenue. For example, during a diplomatic dispute between Canada and Saudi Arabia, Saudi students were ordered to leave the country, resulting in a loss of approximately $140 million in revenue for Canadian universities and colleges.

In addition to the direct contribution to university revenues, international students also have an indirect economic impact on Canada. International students' expenditures contribute to the country's gross output, GDP, employment, and tax revenues. International students also become a source of permanent immigrants to Canada, with one in three international students working towards a bachelor's degree becoming a landed immigrant within ten years. This contributes to the federal government's immigration goals.

However, it is important to note that international students in Canada face unique challenges and pressures, including academic, cultural, and social adjustments. They may struggle to access adequate support for their careers, healthcare, and housing, and many face barriers to finding meaningful work or accessing government wage subsidies. Universities and governments must recognize these challenges and provide tailored support and investments to ensure international students have a positive and high-quality experience during their studies in Canada.

International students as a source of skilled labour

International students in Canada are not subsidised by the government in the same way that domestic students are. Instead, international students pay true tuition fees, which are a lucrative revenue source for Canadian post-secondary institutions. However, international students can benefit from scholarships offered by the Canadian government, foreign governments, non-governmental organisations, and international organisations.

Despite not receiving government subsidies, international students are a valuable source of skilled labour for Canada. Firstly, they are a rich source of highly-skilled global talent, with many international students studying in fields such as engineering, math, and computer sciences, which are areas of projected labour shortages. International students are also more likely to stay in their province of study for the first year after graduation, contributing to the local economy.

Additionally, international students with Canadian study experience have higher earnings than those without, both in the short and long term. This is due to the advantage of having Canadian work experience, which is increasingly important for economic immigrants. Furthermore, international students are more likely to become permanent residents, replacing an aging workforce.

To leverage this source of skilled labour, Canada should focus on in-demand fields of study, increase transparency in the permitting process, streamline pathways, and provide more robust public and private sector support. By creating a targeted approach that addresses labour market needs, Canada can effectively retain international students as a valuable source of skilled labour.

Scholarships for international students

In Canada, the cost of post-secondary education for domestic students is subsidised by the government. This is to encourage Canadians and permanent residents' children to get educated. However, international students' fees are not subsidised in any way by the Canadian government, and they pay the "true" tuition.

There are, however, scholarships available for international students who wish to study in Canada. Global Affairs Canada is responsible for the Canadian government's participation in major international scholarship programs. These scholarships are offered by Canadian governments, foreign governments, non-governmental organisations and international organisations.

The Study in Canada Scholarships is one such program that provides international students from a wide range of countries and territories with short-term exchange opportunities for study or research at Canadian post-secondary institutions. The Canada-China Scholars' Exchange Program is another scholarship that offers Canadians the opportunity to study in China.

Other scholarships include the Canadian International Development Scholarships 2030 (BCDI 2030), which provides quality education and training opportunities in Canada, including vocational and technical training. The Banting Postdoctoral Fellowships program provides funding for the best postdoctoral applicants, both nationally and internationally, who will positively contribute to the country's economic, social, and research-based growth. The Organization of American States Academic Scholarship Program (OAS) provides graduate students from OAS member states with scholarship opportunities to study in Canada. Lastly, the Vanier Canada Graduate Scholarship (Vanier CGS) program aims to attract and retain world-class doctoral students by supporting students who demonstrate leadership potential.

Cost of living for international students

The cost of living for international students in Canada varies depending on their lifestyle and the city they live in. On average, students can expect to spend around $15,000 per year on living expenses, in addition to their tuition fees.

International students must pay higher tuition fees than domestic students because their tuition is not subsidised by the Canadian government. The average tuition cost for international students is between CAD 20,000 and CAD 30,000 per year. Tuition fees vary depending on the type of school and program chosen. For example, public schools range from $9,500 to $17,000 per year, while private or independent day schools can range from $15,000 to $30,000 per year. Private or independent boarding schools are the most expensive, ranging from $63,000 to $83,000 per year.

College and university students in Canada typically spend around $15,000 per year on living expenses. This includes rent, transportation, groceries, and other personal expenses. To save money on rent, some students choose to live off-campus, but this may result in higher transportation costs. Students can also save money by bringing their own lunch to school instead of purchasing meals on campus.

International students in Canada can take advantage of deals and discounts offered by restaurants, stores, and public transportation services. Having an International Student Identification Card can help students access these discounts. Additionally, telecommunications providers offer discounts for students on mobile phone and internet plans.

To manage their finances effectively, international students in Canada are advised to create a budget and set saving goals. It is important to distinguish between needs and wants, prioritising necessary expenses such as rent and groceries over discretionary spending. Students can also explore earning opportunities, such as participating in market research, freelance writing, blogging, or online tutoring, to supplement their income.

Frequently asked questions