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The Canadian Government administers the Student Direct Stream Program, which allows international students to study in Canada. To be eligible for a visa under this program, students must have a Guaranteed Income Certificate (GIC). This certificate ensures that students have funds for their basic needs during their time in Canada, and they can either access the funds directly or the government disburses them.
On December 8, 2023, the Canadian Immigration Minister announced an increase in the GIC amount from $10,000 CAD to $20,635 CAD. This change affects students planning to start their studies in Canada in the January 2024 session. To understand the impact of this increase, it’s important to refer to the Canada Student GIC Rate Increase Table for detailed information.
GIC Increase Canada
Canada regularly updates its immigration regulations to manage immigration effectively. Recently, they announced a change called GIC Increase Canada. International students studying in Canada are required to obtain a Guaranteed Income Certificate (GIC), which serves as insurance. This amount is provided to students during their course for expenses like housing, transportation, or fees. Previously, the GIC rate was $10,000 CAD.
However, under the new rule, students must secure a GIC of $20,635 CAD. This change will impact many students applying for Canadian study visas. The Minister of Immigration, Canada, stated that this increase aims to help students cope with rising inflation.
Additionally, it’s advisable to weigh the pros and cons of having a Guaranteed Income Certificate. This helps students understand how it can benefit or affect them while studying in Canada. For those considering moving to Canada for future studies or admissions, utilizing the Student GIC Calculator can provide insights into the amount payable in their respective currencies.
Canada Student GIC Rate Increase Overview
| Country | Canada |
| Article Name | Canada Student GIC Rate Increase |
| Applicable On | International Students |
| GIC Meaning | Canadian Investment which is returned on Arrival |
| Reason | To Cope up with Cost of Living of Canada |
| GIC Full Form | Guaranteed Income Certificate (GIC) |
| GIC Rate (Earlier) | $10,000 CAD |
| Increased Student GIC Rate | $20,635 |
| Content Type | Finance |
| GIC Reference Website | www.canada.ca |
Pros & Cons of Guaranteed Income Certificate (GIC)
Pros of GIC (Guaranteed Income Certificate):
- The GIC Certificate provides support to students upon arrival in Canada, allowing them to withdraw funds for housing and transportation needs.
- It alleviates the financial burden on parents by providing monthly payments directly to the student’s account for their monthly expenses.
- It serves as a form of security, ensuring students do not encounter financial difficulties while studying in Canada.
Cons of GIC (Guaranteed Income Certificate):
- Some students find it challenging to afford the large amount required for studying abroad, as the GIC is mandatory.
- Unlike some other countries, certain educational institutions abroad do not require GIC or similar investments for enrollment.
- The payment method of 12 months may not be favorable for some students, who prefer more flexible payment options.
How to Open a Student GIC Account
To open a Student GIC Account, you can choose any bank that meets the following criteria:
- The bank must have an overseas branch and be registered with the Canadian Government.
- It should be capable of verifying the GIC during the payout process after students arrive in Canada.
- You should have the required GIC amount in your currency to deposit into the bank.
Once you fulfill these conditions, the GIC Canada Amount will be deposited, and you can withdraw it from the nearest branch.
GIC Canada Amount
The GIC Canada Amount has increased to $20,635 CAD. Previously, the Guaranteed Income Certificate cost was $10,000 CAD. The GIC Canada Increase Rule came into effect on January 1, 2024. Under this rule, all international students must secure an investment of $20,635 CAD.
Student GIC Calculator 2024
To use the Student GIC Calculator 2024, follow these steps:
- Check the current exchange rate of CAD in your currency.
- Multiply the currency amount by 20,635.
- The result is the GIC Amount in your country’s currency.
- Collect this amount and open your GIC Account through any bank.
- Upon reaching Canada, you can withdraw the lump sum amount from your account.
Summary:
The Canadian government has announced an increase in the Guaranteed Income Certificate (GIC) requirement for international students applying for study visas, raising it from $10,000 CAD to $20,635 CAD starting from January 2024. The GIC serves as a financial cushion for students upon their arrival in Canada, aiding with expenses such as housing and transportation. While it eases financial burdens for students and their families, some express concerns about the hefty investment required and the 12-month payment method. Students can open a GIC account with registered banks meeting specific criteria, ensuring compliance with Canadian immigration regulations. This increase aims to help students cope with the rising cost of living in Canada.
FAQs on Canada Student GIC Rate Increase:
What is the purpose of the GIC Increase Canada rule?
Answer: The GIC Increase Canada rule aims to help international students cope with the increasing cost of living in Canada.
When does the increased GIC requirement come into effect?
Answer: The increased GIC requirement is effective from 1st January 2024.
What was the earlier GIC rate?
Answer: The earlier GIC rate was $10,000 CAD.
What is the new GIC rate?
Answer: The new GIC rate is $20,635 CAD.
What does GIC stand for?
Answer: GIC stands for Guaranteed Income Certificate.
What are the pros of having a GIC?
Answer: Pros include financial security for students, monthly payments for expenses, and assistance with housing and transportation.
What are the cons of the GIC requirement?
Answer: Cons include the financial burden on students and their families, the requirement for a hefty investment, and concerns about the 12-month payment method.
How can students calculate the GIC amount in their currency?
Answer: Students can multiply the current rate of CAD in their currency by $20,635.
What are the eligibility conditions for opening a GIC account?
Answer: Banks must have an overseas branch registered with the Canadian government and be liable for verification during GIC payout.
Can students withdraw the GIC amount before arriving in Canada?
Answer: No, students can only withdraw the GIC amount after reaching Canada.
Which banks can students open a GIC account with?
Answer: Students can open a GIC account with any bank meeting specific criteria and registered with the Canadian government.
Is the GIC amount refunded if the student decides not to study in Canada?
Answer: The GIC amount is usually refunded if the student decides not to study in Canada, subject to bank policies.
How does the GIC help students with their studies?
Answer: The GIC provides financial support for students’ basic needs during their time in Canada, reducing financial stress.
Is the GIC requirement applicable to all international students?
Answer: Yes, the GIC requirement applies to all international students studying in Canada.
Can students use the GIC amount for purposes other than basic necessities?
Answer: Yes, students can use the GIC amount for various purposes such as housing, transportation, and fees.
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