শুক্রবার, ৩০ মার্চ, ২০১২

Everything You Wanted To Know About Using RESPs And Student ...

by Jordan Brown on March 28, 2012

If you are enrolled in a university or college and need additional funds to meet tuition and other school-related expenses, there are different options to look into. Many colleges and universities offer financial aid, and students can apply for scholarships and grants. These may not cover all school-related costs, but students have other options to finance their studies, including RESPs and government and non-government student loans.

The Canadian government encourages family, friends and parents to save money for education through the Canada Education Savings Program and Registered Education Savings Plans. RESPs represent education savings accounts that are tax-sheltered and help cover education-related expenses after finishing high school. Registered Education Savings Plans are registered by the federal government, and savings in them grow tax-free. This is a special savings plan for education after high school and works like a savings account. Another way to start saving for education is through the Canada Savings Bond, offered by the Canadian government. Parents qualify if their child/children were born after 31 December, 2003, and they get baby bonus or family allowance (the National Child Benefit Supplement). Parents receive $500, plus $100 a year until their children are 15 of age. Parents are not required to put their own money in a Registered Education Savings Plan to qualify.

Parents can use the bond to pay part-time and full-time studies in a trade school, a CEGEP, an apprenticeship program, university or college. The Canada Education Savings Grant and Canada Learning Bond are offered under the Canada Education Savings Program as a way to encourage friends, family members and, parents to save for college. The federal government deposits up to $7,200 into RESPs to be used when a beneficiary enrolls at a university or another postsecondary institution. Parents have to meet certain eligibility criteria (e.g. the income of the primary caregiver or parent is taken into account.

Government and private loans for students are another option for persons who need additional sources of funding to pay for college. The Government of Canada works in cooperation with the territories and provinces to offer financial assistance. Loans are offered to part-time and full-time students with a demonstrated financial need and are administered as part of the Canada Student Loans Program. Most territories and provinces offer loans under the program, except Quebec, the Northwest Territories, and Nunavut. They have developed their own financial assistance programs and receive payments from the federal government.

The federal government and several financial institutions have developed risk-sharing arrangements. Under these agreements financial institutions assume responsibility for the risks of defaulted loans. On its part, the federal government has agreed to make a fixed payment. Students can apply for non-government student loans in addition to government financial assistance. The major difference between non-government and government student loans is that students are not required to pay interest on government loans while in college.

This web site has tons of useful information.

Source: http://www.themoneynewspaper.com/everything-you-wanted-to-know-about-using-resps-and-student-loans-to-pay-for-college.html

fafsa branson missouri davy jones dead monkees last train to clarksville tim tebow taylor swift post grad

কোন মন্তব্য নেই:

একটি মন্তব্য পোস্ট করুন