2016 Federal Budget Changes Herald an Exciting Shift in the RESP Landscape

March 23, 2016 – Toronto – Heritage Education Funds ("Heritage"), a leading Canadian provider of Registered Education Savings Plans ("RESPs"), is thrilled with Tuesday's announcement regarding changes to Canada Student Grants, as laid out in the 2016/17 federal budget. The substantial increase in grant money for low-and middle-income families will provide them with much-needed assistance in affording a post-secondary education for their children.
 
"These changes are a great first step in shrinking the existing ‘affordability gap' between Canadian families," said Heritage Education Funds president and CEO, Jason Maguire. "By making a post-secondary education more financially viable for lower earning households, they've opened the door for young people who previously wouldn't have seen post-secondary education as a realistic option." 
 
The grant changes come into effect on July 16 of this year, and will provide an increase in Canada Student Grants by 50 per cent per year for low-income, middle-income, and part-time students ($3,000 from $2,000, $1,200 from $800 and $1,800 from $1,200, respectively). The full report and plan are accessible on the Government of Canada's budget page.
 
When used in conjunction with an RESP, these changes in grant allocation should make attending college or university more affordable than ever before. The following snapshot -- the full government chart is located in this section of the page linked above -- gives you an idea of what to expect once the changes have been rolled out:
 
  Current Program Proposed Changes Impact

Enhancing Canada Student Grants

 

  • $2,000 per year for students from low-income families
  • $800 per year for students from middle-income families
  • $1,200 per year for part-time students
 
  • $3,000 per year for students from low-income families
  • $1,200 per year for students from middle-income families
  • $1,800 per year for part-time students
 
These changes will help students cover the costs of their education without increasing student debt.
 
Further enhancements to expand eligibility for Canada Student Grants will be in place for the 2017-2018 academic year.
 
"At Heritage, our ultimate goal is accessible post-secondary education for all Canadians, without them inheriting crippling student debt once they graduate," adds Maguire. "With the Trudeau government stepping in and lending a hand, that goal is much closer to becoming a reality."
  
For more information on RESPs and on how you can benefit from other government grants, visit the Heritage Education Funds website or contact your local Heritage Dealing Representative. Be sure to also check out our RESP Calculator to see how you can contribute to a Heritage Plan. 
 
 
About Heritage Education Funds Inc.
Celebrating fifty (50) successful years in business, Heritage Education Funds is one of Canada's leading, trusted and experienced providers of RESPs. Focused on offering value to its clients, Heritage is also the distributor of the Heritage and Impression Plans. Heritage's objective is to encourage parents, grandparents and others to save for a child's post-secondary education through a planned education savings program. For more information about Heritage, and Heritage Registered Education Savings Plans, visit HeritageRESP.com.
 
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Media Contact:

Michelle Korson
Director, Marketing
michelle.korson@heritagefunds.ca

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