International students contribute C$36 billion to Canadian economy
New research from MPOWER Financing estimates that international students contribute C$36 billion to the Canadian economy. The data comes as Ottawa debates changes to its study permit program for international students seeking a Canadian education.
MPOWER Financing, the leading provider of no-cosigner loans to promising students from around the world, estimates that international students contributed C$36 billion to the Canadian economy in 2022 and are projected to contribute C$42 billion in 2024.
MPOWER calculated the updated numbers using Canadian government figures from 2018 as a baseline, inputting data from an Access to Information and Privacy (ATIP) request from Immigration, Refugees and Citizenship Canada (IRCC) and information from Statistics Canada and other sources. In 2018, Global Affairs Canada estimated that international students spent C$22.3 billion on tuition and living expenses.
MPOWER’s research shows that primary drivers for the increase in spending include rising international student headcount, rising international tuition fees and rising living expenses across Canada.
International student enrollment has steadily increased
Since 2018, the number of international students in Canada has risen dramatically from about 600,000 in 2018 to over 805,000 in 2022 – roughly the same as the number of international students in the United States. The 805,000 foreign students on Canadian campuses includes 110,000 students pursuing a master’s degree, 214,000 students pursuing an undergraduate degree, 330,000 in a college or CEGEP program and 150,000 students enrolled outside of the post-secondary level.
International students in Canada by level of education
Source: MPOWER Financing, IRCC
Canadian cost of living is a challenge
International students are increasingly flocking to Canada, showing that the nation is attracting young and bright students from around the world, thanks to its excellent schools and hospitable environment. However, the rising cost of living means Canada is losing its relative cost advantage versus the United States.
MPOWER estimates the average international student in Canada spends C$44,000 on tuition and living expenses, only slightly less than their counterparts in the United States. While tuition in Canada remains more affordable, higher living costs mean international students in Canada spend a greater share of educational costs on living expenses. For example, the average international master’s degree student in Canada spends the majority of their budget on living expenses, compared with about 40% for their counterparts in the United States.
Total cost of education for an international master’s degree student in Canada (C$)
Source: MPOWER Financing, Statcan, the Bank of Canada
MPOWER Financing works with post-secondary institutions across Canada and the United States to help students from around the world afford a high-quality education. A recent survey of MPOWER’s students revealed that over 93% believe MPOWER’s no-cosigner loan was imperative to their ability to study abroad.
“If it weren’t for MPOWER, we would not have the number of African students that we do, which would have effectively reduced the diversity of our international student population,” a recruitment official at the University of Toronto’s Rotman School of Management said.
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About MPOWER Financing
MPOWER Financing, headquartered in Washington, D.C. and Bengaluru, India, is a mission-driven fintech company and the leading provider of global education loans. Its proprietary algorithm analyzes overseas and domestic credit data as well as the future earning potential to serve promising international students. MPOWER works with over 400 top universities across the U.S. and Canada to provide financing to students from over 200 countries. The MPOWER team consists of former international students and provides students with personal financial education and career support to prepare them for life after school.
MPOWER is a Certified B Corp and Great Place To Work, one of the best fintechs to work for, and the best tech workplace for diversity. The company is hiring for positions worldwide.
