• Last Updated:
  • May 26th, 2012 1:43 pm
Tags:
None
Banned
Mar 10, 2012
57 posts
1 upvote
MISSISSAUGA

RESP and OSAP

Can I use both? my parents saved about $12,000 in resp money, but i still want to apply for osap for bursaries and scholarships, so Am I still allowed to apply for osap even with resp?
14 replies
Deal Expert
Mar 25, 2005
20187 posts
1469 upvotes
Yes, you can withdraw from an RESP while receiving OSAP.
Deal Addict
User avatar
Aug 30, 2007
2430 posts
40 upvotes
You can still apply, but know that the amount of RESP you withdraw will negatively affect the amount of funding you will get from OSAP.
Deal Expert
Mar 25, 2005
20187 posts
1469 upvotes
nuberific wrote:
Apr 16th, 2012 9:59 am
You can still apply, but know that the amount of RESP you withdraw will negatively affect the amount of funding you will get from OSAP.

OSAP provides an allowance where RESP withdraws do not affect OSAP standing; OSAP is not intended to cover all tuition. Playing with the calculator can provide an approx. point.
Sr. Member
Mar 13, 2008
578 posts
27 upvotes
is there any issue withdrawing your entire resp in one go? i am thinking of getting one started for the next generation, but i am concerned getting the money when it is time will be more pain then it's worth
Deal Expert
Mar 25, 2005
20187 posts
1469 upvotes
mulambo187 wrote:
Apr 16th, 2012 3:04 pm
is there any issue withdrawing your entire resp in one go? i am thinking of getting one started for the next generation, but i am concerned getting the money when it is time will be more pain then it's worth

Any accumulated earnings (other than contributions) is taxable in the hands of the beneficiary, and a large withdraw reduces or eliminates OSAP potential. You have to consider the tax and OSAP effects of such before doing so. Other than that, its simple to withdraw while the beneficiary is in school.
[OP]
Banned
Mar 10, 2012
57 posts
1 upvote
MISSISSAUGA
Well I dont really need the osap, I just want to get more money back when i apply for bursaries, and I heard osap sometimes find scholarships/bursaries and give you to them
Deal Expert
Mar 25, 2005
20187 posts
1469 upvotes
sheriden23 wrote:
Apr 16th, 2012 4:48 pm
Well I dont really need the osap, I just want to get more money back when i apply for bursaries, and I heard osap sometimes find scholarships/bursaries and give you to them

Assuming you move to school, withdrawing $3000 each year is unlikely to have any material effect.
[OP]
Banned
Mar 10, 2012
57 posts
1 upvote
MISSISSAUGA
Well I dont really need the osap, I just want to get more money back when I apply for bursaries, and I heard osap sometimes find scholarships/bursaries and give you to them. Is it possible to not even borrow money from them and they apply bursaries for me? I mean why should I get punished for saving the last 4 years of my life for college, and having enough money to pay for it without needing help from osap, while compared to someone else whom spends their money on useless stuff and gets the bursury because they chose to spend it wildly and have no cash, compared to me whom has a low salary $20,000 and decided to save up.
Deal Guru
User avatar
Nov 15, 2004
12566 posts
903 upvotes
Toronto
mulambo187 wrote:
Apr 16th, 2012 3:04 pm
is there any issue withdrawing your entire resp in one go? i am thinking of getting one started for the next generation, but i am concerned getting the money when it is time will be more pain then it's worth

You can only withdraw a max of $5,000 EAP (grants + growth) in the first 13 weeks, and then the rest after. You can withdraw all of your contributions in one shot though.
Could HAVE, not could OF. What does 'could of' even mean?
[OP]
Banned
Mar 10, 2012
57 posts
1 upvote
MISSISSAUGA
why would osap give you free 2k per year? should I apply for the osap + 30% rebate or just the 30% rebate on teh osap website?
[OP]
Banned
Mar 10, 2012
57 posts
1 upvote
MISSISSAUGA
yup im from ontario, how do i get the 2k? my brother never got free 2k?
Moderator
User avatar
Aug 22, 2003
15531 posts
957 upvotes
Niagara Falls
OP, what was suggested was outright fraud. OSAP does prosecute. ;)

All of the OSAP based grants/bursaries are only available to those who actually qualify for OSAP funding BTW...
Thinking seriously about the 4 S's...Sun, Sand, Surf and ... Booked for Sept in Mexico and booked Samana DR for Jan!
[OP]
Banned
Mar 10, 2012
57 posts
1 upvote
MISSISSAUGA
well why would i be punished when i saved up compared to someone who has a higher income and doesn't save
× < >

Top