Rising tuition costs throughout Canada have caused young students and their families to begin preparing for and seeking solutions to hefty tuition bills. It has been estimated that the costs of tuition in Canada will be three times as great in 2017 as they were in 1990. Canada has been listed as the fifth nation in the OECD in terms of tertiary tuition costs for university students, and the rising cost of university studies has led to protests in major university cities such as Montreal. Ask online for experts at www.heritageeducationfunds.ca

Many Canadian families have looked to the Registered Education Savings Plan (RESP) to help deal with the rising expense of acquiring a university education. Using an RESP, families can take advantage of the Canada Education Savings Grant while also avoiding having to pay taxes on income that goes into their university savings. In fact, the RESP is considered to be a tax shelter that can provide students with an income source during post-secondary studies. The RESP can take advantage of several different government grants, some of which depend on the particular province in which the student resides. Possible government grants that can help to contribute to an RESP include the Canada Education Savings Grant, the Canada Learning Bond, the Alberta Centennial Education Savings Grant, the Saskatchewan Advantage Grant for Education Savings, and the Québec Education Savings Incentive. 

 

RESPs are available both on an individual basis and on a group basis. A group RESP or a Group Scholarship RESP pools the contributions of several different students and accrues interest that is paid out when the plan has matured. In addition to group plans and individual plans, there are also family RESPs available that help families with numerous children to save for the eventual university costs of more than one student. Check profiles like As for experts at Heritage Education Funds.

Savings plans that help families pay for college for their children have been attracting more and more attention in recent years as university tuition costs continue to rise. Provinces where university tuition costs are the highest include Ontario, Nova Scotia, Alberta, and Saskatchewan. While tuition costs have risen everywhere in Canada, tuition increases have been very low in Newfoundland and Labrador. 

While the RESP is a popular method of dealing with tuition increases, other initiatives and tactics have been proposed to cope with runaway tuition costs. These include debt caps, loan forgiveness, interest relief, and student loans. Of course, it is hoped that concern at the alarming rate at which tuition costs are increasing in Canada will lead not only to efforts to deal with rising costs, but also an end to the tuition increases. Visit online for more information at www.heritageeducationfunds.com

In the meantime, Canadian families should familiarize themselves with the RESP and begin planning for tuition savings as early as possible.