Recently, the Government of Canada has announced an increase on the amounts of Canada Student Grant that students
from low and middle-income families are entitled to receive. For students who are most in need, the amounts can
increase by as much as 50% for the upcoming 2016-2017 academic school year. More specifically, the grant increases
break down as follows:
- From $2000 to $3000 per year for full-time students from low-income families.
- From $800 to $1200 per year for full-time students from middle-income families.
- From $1200 to $1800 per year for part-time students from low-income families.
The Ugly Truth About the Cost of Post-Secondary Education
While this increase is great news for students who are most in need, parents need to be cautious about how much this
increase will really cover and whether you meet the definition of low to middle-income family. Post-secondary expenses
can accumulate quickly and become overwhelming for a family to combat without other saving vehicles. Thus, when we
take a closer look at the cost breakdown, relying on the Canada Student Grant to cover your child’s post-secondary
expenses will simply not suffice.
Using Canada Student Grant and RESP to Maximize Education Savings
A Registered Education Savings Plan (RESP) is an investment vehicle that allows Canadian families to save for their
children’s post-secondary education. With an RESP, beneficiaries become eligible for government grants that will be
added to your contributions and grow in your plan. Beneficiaries may receive up to $7,200 in Canada Education Savings
Grant (CESG) and up to $2,000 in Canada Learning Bond (CLB) for a total of $9,200 in government grants. These grants
are available exclusively to beneficiaries of an RESP.
Simply put, the best way for families to ensure your child’s future education would be to confide in the Canada Student
Grant in conjunction with the financial security of an RESP.
Global RESP Corporation (GRESP) is one of the recognized Scholarship Plan Dealers and providers of Registered Education Savings Plans (RESPs) in Canada since 1998. GRESP is the primary distributor of the Legacy Education Savings Plan (LESP) and the Advanced Education Savings Plan (AESP), offered by Full Prospectus through registered Dealing Representatives across Canada. Our Dealing Representatives embody decades of RESP experience and aim to provide clients with quality and trusted services, while helping families save for their child’s future education. For further information, visit www.GlobalRESP.com.