Page 1 of 1

RESP and OSAP

Posted: Apr 16th, 2012 1:59 am
by sheriden23
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?

Re: RESP and OSAP

Posted: Apr 16th, 2012 4:15 am
by Kasakato
Yes, you can withdraw from an RESP while receiving OSAP.

Re: RESP and OSAP

Posted: Apr 16th, 2012 9:59 am
by nuberific
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.

Re: RESP and OSAP

Posted: Apr 16th, 2012 2:57 pm
by Kasakato
nuberific wrote: 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.

Re: RESP and OSAP

Posted: Apr 16th, 2012 3:04 pm
by mulambo187
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

Re: RESP and OSAP

Posted: Apr 16th, 2012 3:25 pm
by Kasakato
mulambo187 wrote: 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.

Re: RESP and OSAP

Posted: Apr 16th, 2012 4:48 pm
by sheriden23
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

Re: RESP and OSAP

Posted: Apr 16th, 2012 5:02 pm
by Kasakato
sheriden23 wrote: 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.

Re: RESP and OSAP

Posted: Apr 20th, 2012 3:42 pm
by sheriden23
o alright thanks

Re: RESP and OSAP

Posted: May 25th, 2012 3:46 pm
by sheriden23
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.

Re: RESP and OSAP

Posted: May 25th, 2012 3:56 pm
by Piro21
mulambo187 wrote: 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.

Re: RESP and OSAP

Posted: May 25th, 2012 4:08 pm
by sheriden23
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?

Re: RESP and OSAP

Posted: May 25th, 2012 8:21 pm
by sheriden23
yup im from ontario, how do i get the 2k? my brother never got free 2k?

Re: RESP and OSAP

Posted: May 25th, 2012 10:25 pm
by CSK'sMom
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...

Re: RESP and OSAP

Posted: May 26th, 2012 1:43 pm
by sheriden23
well why would i be punished when i saved up compared to someone who has a higher income and doesn't save