Personal Finance

Group RESP Maturing

  • Last Updated:
  • Jul 9th, 2015 12:20 am
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Deal Addict
Nov 26, 2011
2184 posts
252 upvotes
Ottawa

Group RESP Maturing

I have a relative who has their group resp maturing this year. There is like 4 maturation options.

1) The Scholarship Option- This option is ideal for students taking 2, 3 or 4 years of eligible studies. Your contributions, less the applicable fees, also known as your "principal" along with up to 25%, 50% or 100% of the sales charges (depending on the scholarship option chosen) will be returned to you on or after your maturity date and can be used to help fund your beneficiary's first year of post-secondary studies. Educational assistance payments (EAPs) are available in the 2nd, 3rd and 4th years of eligible studies depending on the scholarship option (option 1, 2 or 3) you chose prior to the release of your principal. EAPs are paid beginning the 2nd year of eligible studies.

2) This option is ideal for students enrolled in eligible studies that are less than 2 years in length, or not attending at all. You may request your principal at any time between the maturity date and your plan's expiry date of 35 years from the application date. The sales charges are not returned under the self-determined option.

If your beneficiary enrolls in a qualifying program – your beneficiary can request EAP(s) at any time up to your plan's expiry date.

If your beneficiary does not enroll in a qualifying program – you can request the earnings in your plan in the form of an accumulated income payment (AIP) provided you meet certain criteria.

Which one should he select for the child if the child is planning on a 4 yr nursing program? So from understanding the options it seems the EAP (grants, bonds, income earned on it) will only be released in 2nd, 3rd and 4th year. What about the principal amount is that all released in the beginning?
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