Resources

Registered Education Savings Plan (RESP)

Receive up to $9200 in government grants!

Do you have children, grandchildren, nieces or nephews? Here's your chance to give them the greatest gift of all, the Gift of Education!

The federal government of Canada provides up to $9200 in government grants for a child's education. All you have to do is open a Registered Education Savings Plan (RESP). Visit any Softron Office and speak with a Global Educational Marketing Corporation, licensed Sales Representative, who can assist you in setting up your plan today! Global Educational Marketing Corporation distributor of Global Education Trust Plan.

Canada Education Savings Grant

Until 2003, the Minister of Human Resources Development (HRD) was paying a 20% Canada Education Savings Grant (CESG) on the first $2,000 of annual contributions made to all eligible RESPs of a qualifying beneficiary.

Federal Budget 2004

2004’s federal budget placed a high degree of importance on improving learning in Canada— spending $251-million in the next fiscal year and focusing on students.
Finance Minister Ralph Goodale made it clear that in order for Canada to succeed economically on a global scale, more investment must be made in education.
"Education can enable people to overcome differences in birth or background…an education could open doors, expand opportunities and change lives, the finance minister said, making reference to a the words of a renowned educator who set up a school in his hometown of Wilcox, Sask., during the Depression.
The government is focused on improving Canada's place among OECD countries. It's currently eighth in income per capita, and studies say that the country's under-funded university system is part of the problem.

Canada Learning Bond

Brand new initiatives included a Canada Learning Bond, and a new first-year grant for students.
The Canada Learning Bond is aimed at helping low-income families save for their children's education. Beginning in 2004, each child born to low income families--those earning $35,000 or less) will receive a $500 CLB, as long as they are also entitled to receive the National Child Benefit.
For each following year, up to the age of 15, eligible children will receive $100 CLB instalments yearly provided they are still entitled to receive the NCB.
"The learning bond will benefit more than 120,000 newborn children this year alone," Mr. Goodale said.
The government says a child living in a low-income household could receive up to $2,000 for their education.

Increase in CESG

The maximum amount of CESGs that a beneficiary could receive until 2003 was $7,200.
The government is also enhancing the Canada Education Savings Grant, increasing the amount that the government matches on the first $500 in contributions to the Registered Education Savings Plan made by parents for their children's schooling, to 40 per cent from 20 per cent.

The new program will offer families with incomes between $35,000-$75,000, a matching grant of 30%.

RESP contribution limits

There is an annual and lifetime limit on the amount that can be contributed to an RESP. These limits apply to each beneficiary regardless of the number of plans for a beneficiary.
The contribution limit is $4,000 each year to a lifetime maximum of $42,000 for each beneficiary. Note: Payments made to an RESP under the CESG program are not considered to be contributions to the plan.

Payments from an RESP:

Educational assistance payment (EAP) An educational assistance payment (EAP) is any distribution, made under certain conditions, of an RESP's accumulated income and Canada Education Savings Grants to a beneficiary of the RESP, to help finance the cost of the beneficiary's post-secondary education. To qualify as an EAP, when the payment is made the beneficiary has to be: ·

	enrolled as a full-time student in a qualifying educational program at a post-secondary educational institution (includes students in attendance at the institution and those enrolled in distance education courses, such as correspondence courses); or ·
	enrolled as a student in a qualifying educational program at a post-secondary educational institution, and have a mental or physical impairment the effects of which-as certified in writing by a medical doctor or appropriate medical practitioner such as, an optometrist, audiologist, psychologist, or occupational therapist-prevent the beneficiary from being enrolled as a full-time student.

The Minister of Human Resources Development may increase the $5,000 limit in certain cases (for example, if the cost of tuition for a program is substantially higher than the average). Such requests have to be made to the Minister by the RESP promoter in writing.