MPOWER Financing Advocates for Enhancements to Canada's Study Permit Program

Submission to the Standing Committee on Immigration and Citizenship Analyzes Recent Reforms and Proposes Collaborative Solutions

TORONTO, Dec. 11, 2024 /CNW/ -- MPOWER Financing, a mission-driven fintech firm and leading provider of scholarships and no-cosigner loans to high-potential students worldwide, has actively contributed to the Standing Committee on Immigration and Citizenship's study concerning recent reforms to Canada's study permit program.

In its submission, MPOWER observed that the government's efforts to strengthen program credibility, combat fraud, and promote diversity have not fully achieved the intended outcomes. While the government has succeeded in reducing overall international student enrollment, these measures have unintentionally harmed graduate-level education and failed to meaningfully diversify the student population.

This submission accompanies a new post on the MPOWERed Insights blog, where MPOWER shares industry thought leadership and information on international education trends. In its recommendations, MPOWER suggested working with the Government of Canada to pilot advanced financial verification programs for prospective students, aiming to support the government to achieve its objectives.

MPOWER observed the following trends:

• Overall Decline: Post-secondary study permit issuances decreased by 24% between the 2022/23 and 2023/24 academic years.
• Educational Levels: Permits fell by 26% for college students, 20% for undergraduates, and 19% for graduate students, despite graduate students being exempt from permit caps.
• Regional Variations: Issuances declined by 25% for Indian students, 12% for African students, and 40% for Latin American students, while Chinese enrollment saw a 4% increase.

MPOWER recommended that the Government of Canada:

1. Enhance Financial Verification: Improve verification of international students' financial resources by partnering with reputable global lenders such as MPOWER.
2. Targeted Recruitment: Strengthen recruitment efforts, particularly in Africa and among Francophone African nations.
3. Pilot Verification Programs: Implement a financial verification pilot with colleges and universities, possibly modeled after successful systems in the United States.
4. Address Regional Discrepancies: Tackle lower study permit approval rates for African students compared to peers from other regions.

"The recent reforms to Canada's study permit program have inadvertently hindered international student enrollment in places which it was not meant to, particularly among African applicants and graduate students," noted Sasha Ramani, Head of Canada, Government Relations, and Corporate Strategy at MPOWER Financing. "By enhancing financial verification processes and promoting targeted recruitment efforts, Canada can uphold the integrity of the study permit program while promoting diversity and inclusion in Canadian higher education."

MPOWER's internal data for the 2023/24 academic year revealed that students from Nigeria, Ghana, and Kenya with MPOWER loans experienced study permit approval rates between 85% and 90%—often 60 percentage points higher than those without MPOWER funding. This underscores the significant role financiers can play in facilitating diversity access to international education.

The full submission is available on OurCommons.ca, and MPOWER's detailed analysis can be found on the MPOWERed Insights blog.

About MPOWER Financing
MPOWER Financing, headquartered in Washington, D.C., and with employees worldwide, 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 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 their professional careers after graduation.

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 various positions worldwide.

SOURCE MPOWER Financing

Sasha Ramani, [email protected]