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The Student Direct Stream, or SDS, is a program designed to make the process of applying for a Canadian study permit faster and more efficient for some international students.
What is a Student GIC?
A Student GIC (Guaranteed Investment Certificate) is tailored for international students applying through Canada’s Student Direct Stream (SDS) Program. This program speeds up the study permit application process. The GIC requires a minimum investment of $20,635, as specified by Immigration, Refugees and Citizenship Canada (IRCC), to cover living expenses for international students. Each month, part of the investment, along with interest, is released to help manage expenses.
Benefits of a Student GIC
While not mandatory for obtaining a study permit, a Student GIC enables international students to benefit from the SDS Program, which significantly reduces processing time to about 20 days. Additional perks include access to free chequing or savings accounts, which might not be available to non-SDS students. This financial product provides a reliable income source, ensuring that students can focus on their studies without financial concerns.
How Does a Student GIC Work?
To obtain a Student GIC, students wire transfer $20,635 (plus fees) to a participating financial institution. Upon arriving in Canada, students receive a lump sum of around $4,000 for immediate use, while the remaining funds are placed in a one-year GIC. Monthly installments of about $1,600, plus interest, are then deposited into the student’s chequing account for 11 months, ensuring a steady cash flow to cover living expenses.
Eligibility and Requirements
The SDS Program is available to legal residents from specific countries, including India, China, Brazil, and several others. Applicants must meet specific requirements and provide upfront documentation, including valid language test results, proof of GIC, full payment of the first year’s tuition, an acceptance letter from a designated learning institution (DLI), and medical examination results if applicable.
Participating Financial Institutions
Several recognized financial institutions offer Student GICs, including:
- Bank of China (Canada)
- Bank of Montreal (BMO)
- Scotiabank
- Canadian Imperial Bank of Commerce (CIBC)
- Royal Bank of Canada (RBC)
- Toronto-Dominion Bank (TD Bank)