Since January 1st, 1998, the federal government offers the Canada Education Savings Grant (CESG).
The CESG is a government grant developed for the purposes of encouraging parents, grandparents, uncles and aunts, friends and relatives, to save for the post-secondary studies of a child. The CESG is paid directly into the RESP of which the child is beneficiary.
RESP Education Centre
The Studies
Government Assistance
> Who can receive the CESG?
All children aged 17 years or under can receive a grant if:
They are Canadian residents
They have a social insurance number
They are named as a beneficiary of an RESP
A sum of money is paid into their RESP
> How much can be received?
The CESG corresponds to 20% of the first $2,500 of the annual contributions paid, up to $500* of CESG per child annually. Since January 1st, 2005, the rate of CESG applicable to the first $500 of annual contributions to an RESP has increased:
from 20% to 30% for the beneficiary whose annual family income in 2008 is greater than $38,832, but less than or equal to $77,764**
from 20% to 40% for the beneficiary whose annual family income in 2008 is less than $38,832.**
You child receives a total grant which can reach $7,200 *. This amount grows tax free!***
Take full advantage of the available government assistance. Speak to a Universitas representative in order to understand more completely the advantages that the CESG can give you!
* Certain conditions apply. Consult our prospectus.
** These amounts are indexed each year.
*** The CESG paid to a student is added to their taxable income, as are their scholarships. However, students generally
pay less or no income tax because of the low levels of income which they earn during their studies.
