Canada’s New Rules on Working Hours Increase Financial Burden on Indian Students

Canada has long been a popular destination for Indian students seeking higher education. The country offers world-class universities, a multicultural environment, and pathways to permanent residency. However, recent changes to Canada’s work-hour rules for international students have raised concerns, particularly among Indian students who rely on part-time work to manage their finances.

In this blog post, we’ll explore how these new regulations have increased the financial burden on Indian students in Canada and what it means for prospective students considering studying abroad.

Overview of the New Working Hours Policy

In November 2022, Canada temporarily lifted the cap on the number of hours international students could work off-campus. Earlier, students were limited to working 20 hours per week during the academic year. This policy change aimed to address labor shortages in the country while offering international students an opportunity to earn more.

However, as of September 2024, the Canadian government has reinstated the 20-hour weekly work limit during academic sessions. This shift has become a point of concern for many Indian students, who often rely on part-time jobs to cover tuition fees, living expenses, and other costs.

Financial Impact on Indian Students

For many Indian students, the opportunity to work more hours helped alleviate the financial strain of studying abroad. Higher education costs in Canada are already significant, with international students paying much higher tuition fees compared to domestic students. Indian students, who make up a significant portion of the international student population in Canada, have been particularly affected.

Rising Tuition Fees and Living Costs

• Tuition Fees: The average tuition fee for international students in Canada ranges from CAD 15,000 to CAD 30,000 annually, depending on the program and institution. For Indian students, these costs are compounded by the unfavorable exchange rate, making tuition payments even more challenging.
• Living Expenses: The cost of living in Canada varies depending on the city. Major cities like Toronto, Vancouver, and Montreal are known for their high housing and food costs. International students also face expenses such as health insurance, transportation, and textbooks.

Before the rule change, students could work full-time during breaks and unlimited hours during the academic term, making it easier for them to manage these expenses. With the cap reinstated, students have to make do with fewer working hours, leading to financial strain.

Limited Work Opportunities

Another concern is the availability of suitable part-time jobs. Many Indian students take up jobs in the service and retail sectors, such as working in restaurants, stores, or as delivery drivers. These jobs offer flexible hours but may not pay enough to meet the rising costs of education and living expenses.

With the reinstatement of the work-hour cap, students must prioritize their academics while trying to juggle part-time work. This limited window of earning potential means students may have to rely more heavily on personal savings or loans to cover their costs.

Dependency on Loans and Financial Aid

Indian students, especially those from middle-income families, often take out education loans to study in Canada. With fewer opportunities to work part-time, these students now find it harder to repay their loans while pursuing their studies. The new rules could also push students to take on additional debt to manage the growing financial burden.

Some students may consider alternative forms of financial aid, such as scholarships and bursaries, but these are often limited in availability and competitive to secure. This leaves many students in a difficult situation where they must balance academic pressures with financial concerns.

Effect on Future Immigration Plans

For many Indian students, studying in Canada is seen as a pathway to permanent residency. Canada’s Post-Graduation Work Permit Program (PGWPP) allows students to work in the country for up to three years after completing their studies, which can eventually lead to permanent residency.

However, with the cap on working hours during their studies, students may not be able to gain sufficient work experience or save enough money to support themselves during the post-graduation period. This could have long-term implications on their immigration plans and overall financial stability.

Possible Solutions and Alternatives

While the new rules may be challenging, students can explore several strategies to manage their finances more effectively:

1. Budgeting: Indian students must create a strict budget to control their expenses. Prioritizing essentials such as rent, groceries, and utilities can help minimize financial stress.
2. Scholarships and Grants: Students should actively search for scholarships and grants offered by Canadian universities, government bodies, and private organizations. These financial aids can significantly reduce tuition costs.
3. Internships and Co-op Programs: Many Canadian institutions offer paid internships and co-op programs that allow students to gain valuable work experience while earning money. These programs are not subject to the 20-hour work limit and can provide a substantial source of income.
4. Remote Freelancing Opportunities: Students may also consider remote freelance work in areas such as digital marketing, web development, and content writing. These jobs offer flexibility and are often high-paying compared to traditional part-time jobs.
5. Family Support: For some students, family financial support may be a viable option, particularly for those who have relatives in Canada or other countries.

Conclusion

Canada’s recent changes to its international student work-hour policies have created new challenges for Indian students. While the reinstatement of the 20-hour limit may help address concerns about student performance and labor market balance, it has also placed a significant financial strain on students who rely on part-time work to support their education and living expenses.