are not affected by other bursaries and/or scholarships from other sources. These payments may in turn affect payments from other sources such as OSAP assistance. Please check with the bursary/scholarship provider for confirmation.

Yes you can. Section B on the maturity Application enables you to request for an EAP at maturity.

A deferral of the first EAP is available to the beneficiary if they are expected to be registered in the 2nd year of post-secondary studies later than the original eligibility date. The first EAP may be deferred for a maximum of 2 years, one year at a time, by August 15th of the Year of Eligibility (this is a year after the maturity date of the plan). Further deferrals may be granted to the beneficiary, under extenuating circumstances, at the discretion of the Heritage Educational Foundation (the Foundation). A letter of appeal from the beneficiary along with original supporting documents will be required for submission to the Foundation prior to the deadline.

A deferral of the second or third EAP is available when the beneficiary is expected to be registered in 3rd or 4th year of post-secondary studies later than originally expected. There is only one deferral permissible under the terms and regulations of the RESP Contract. Further deferrals may be granted to the beneficiary, under extenuating circumstances, at the discretion of the Foundation. A letter of appeal from the beneficiary, along with supporting documents, will be required for submission to the Foundation prior to the deadline.

If the beneficiary (student) is eligible to receive an EAP for the post-secondary school year, the approximate amount must be reported on the OSAP application as the beneficiary's income since it will be reported on his/her taxes.

If the beneficiary's status is Native Indian, the RESP Contract is not affected when releasing funds for maturity and EAPs. The beneficiary will be required to complete the proper documents and submit the Proof of Registration in order to receive the payments, just like any other student. The only difference is that he/she may not be required to pay taxes for the EAP amounts received due to their status. You may obtain further clarification from Canada Revenue Agency regarding tax implications at: .

In the spring of the year your Heritage Plan is scheduled to mature (normally the year in which the child turns 18), we will be sending you an information package that will guide you through the steps of the RESP maturity process.

On or after the maturity date, the contributions less fees are returned to the subscriber or, on instruction by the subscriber, to the subscriber's beneficiary. The contributions less fees may be, but are not required to be, used for the costs of the first year of attendance at a post-secondary institution. The maturity date may be advanced by a maximum of 2 years at the subscriber's request if the beneficiary intends to attend a post-secondary program earlier than originally scheduled (certain conditions apply).

For plans with a maturity date of July 31, 2014 or earlier, under a scholarship option, we require the Proof of Registration or Offer of Admission that confirms the beneficiary is enrolled full-time to release the contributions less fees. For plans with a maturity date of July 31, 2015 or later, full-time status is not a requirement.

Under the self-determined option (SDO) of the Heritage Plans, if the beneficiary is not expected to enroll in a post-secondary education program, you may request to have your contributions less fees returned without providing the Proof of Registration, but the government grants (if applicable) will be returned to the Government.

There are two maturity options under the Heritage Plans:

• The scholarship option (continuing in the group plan)
• The self-Determined option (continuing in the self-determined plan)

Under the scholarship option there are three alternatives to select from, with educational assistance payments (EAPs) made in one, two or three years. Your selection will usually depend on the length of post-secondary studies your beneficiary intends to pursue. Alternatively, you may select the self-determined option.

If your beneficiary enrolls in a 2, 3 or 4 year post-secondary program, the scholarship option is the most beneficial. A combination of programs totaling 2, 3, or 4 years qualifies as well.

With the scholarship option, for plans with a maturity date of July 31, 2014 or earlier, your RESP contributions (less applicable fees) are returned to you tax free at maturity. For plans with a maturity date of July 31, 2015 or later, your RESP contributions (less applicable fees) are returned to you tax free at maturity along with up to 25%, 50% or 100% of the sales charges depending on the payout option selected. These funds can be used to finance your beneficiary's first year of post-secondary education.

Yes. Depending on the length of eligible studies your beneficiary attends, you can decide how the educational assistance payments (EAPs) should be paid to your beneficiary. There are three payout options available:

For plans with a maturity date of July 31, 2014 or earlier:

1. For students attending a 2-year post-secondary program, Option #1 provides 1 EAP that consists of government grants, income¹, attrition² and a payment from the discretionary payment account³.

2. For students attending a 3-year post-secondary program, Option #2 provides 2 annual EAPs, where each payment consists of 50% of government grants, income¹, attrition² and a payment from the discretionary payment account³.

3. For students attending a 4-year post-secondary program, Option #3 provides 3 annual EAPs, where each payment consists of: 33.3% of government grants, income¹, attrition² and a payment from the discretionary payment account³.

For plans with a maturity date of July 31, 2015 or later:

1. For students attending 2 years of eligible studies, Option #1 provides 1 EAP that consists of government grants, income1 and a non-discretionary payment to enhance the EAP⁴.

2.For students attending 3 years of eligible studies, Option #2 provides 2 annual EAPs, where each payment consists of 50% of government grants, income1 and a non-discretionary payment to enhance the EAP⁴ with funds paid over two years and distributed with each EAP.

3. For students attending 4 years of eligible studies, Option #3 provides 3 annual EAPs, where each payment consists of: 33.3% of government grants, income¹ and a non-discretionary payment to enhance the EAP⁴ with funds paid over three years and distributed with each EAP.

1 In each year the available Income, including that from terminated plans, is divided by the number of Units of eligible beneficiaries who have selected the same number of EAPs. The result is multiplied by the number of Units held with respect to the particular eligible beneficiary and distributed as part of the EAP. Income on government grants from terminated plans is not included in this amount.

2 Attrition is the term that applies to the share of pooled income that remains in the Heritage Plans after any beneficiaries in the same group as your beneficiary do not qualify for payments. For those beneficiaries, the income earned on contributions less fees stays in the total asset pool to be shared by beneficiaries remaining in the pool. Please refer to the Heritage Plans' prospectus for more information on how attrition applies to your plan. Actual results may vary.

3 Discretionary payments (consisting of sales charge returns and payments from the discretionary payment account) are not guaranteed. You should not count on receiving a discretionary payment. The Foundation decides if it will make a discretionary payment in any year and how much the payment will be.

4 This is a non-discretionary payment to beneficiaries in a beneficiary group, which represents the amounts of pre- and post-maturity attrition remaining after the refund of up to 25%, 50% or 100% has been paid. See prospectus for full details.

The self-determined option is designed specifically for beneficiaries enrolled in studies that are shorter than two years in length or not attending at all.

With the self-determined option of the Heritage RESP Plan, you, the subscriber, may withdraw your contributions less fees any time after the maturity date. Then, as long as your beneficiary is in attendance at a post-secondary program offered by a recognized institution, he or she is eligible to receive educational assistance payments (EAPs). If the beneficiary does not plan to pursue a post-secondary education, the subscriber may request to release an accumulated income payment (AIP)*.

*Certain conditions apply. See prospectus for full details

Your beneficiary will receive educational assistance payments (EAPs), which are made up of all income accrued on your Heritage Plan contributions less fees, all government grants, where applicable, and the income earned on those grants. EAPs can be applied to any qualifying post-secondary education program costs, including tuition, books, residence, and other legitimate education expenses.

Your RESP funds can be used for either full-time or part-time studies in a qualifying program. A qualifying full-time program in Canada is a course of study of at least three consecutive weeks, with at least 10 hours of study per week. A qualifying program outside of Canada, is a course of study at a university of at least three consecutive weeks, with at least ten hours of study each week; or, a course of study at a Recognized Institution, other than a university, of at least 13 consecutive weeks, with at least ten hours of study each week. A qualifying part-time program in and outside of Canada at a Recognized Institution is a course of study of at least 13 consecutive weeks, with at least 12 hours of study per month.

If the beneficiary is registered for at least 3 consecutive weeks and no less than 12 hours per month, the maximum amount that may be released for each 13-week period of study is $2,500. The beneficiary must continue studies to qualify for additional payments.

If the beneficiary is registered for full-time studies, the maximum amount of an EAP that can be made to a student as soon as he/she qualifies to receive them is $5,000. After the student has completed 13 consecutive weeks and is still considered a full-time student, there is no limit on the amount of EAPs that can be paid if the student continues to qualify to receive them. If there is a 12-month period in which the student was not enrolled in a qualifying educational program for 13 consecutive weeks, the $5,000 maximum applies again.

Under the self-determined option, any subsequent EAP withdrawal within the same year will be subject to a processing fee of $10.00 (plus applicable taxes).

You must select an option if you require funds from your RESP to pay for post-secondary studies. You have until July 31st of the maturity year to select an option. The deadline cannot be extended. If the beneficiary does not plan to enroll in a post-secondary education program in the year the plan is scheduled to mature, please request to delay the maturity date before July 1st in the year the plan is scheduled to mature. Delays of the original maturity date are permissible up to July 31st prior to the beneficiary's 21st birthday.

If your beneficiary decides not to pursue a post-secondary education, you may select the SDO and may withdraw your contributions less fees and:

• Roll the income into your or your spouse's RRSP (if your spouse is a joint Subscriber) provided that you have contribution room available and that the conditions for an accumulated income payment (AIP) have been met.
• If you do not have RRSP contribution room available and you make a withdrawal on your contributions less fees and income earned, Canada Revenue Agency (CRA) will levy an additional federal tax of 20% (12% federal and 8% provincial for Quebec residents) on the withdrawn funds (other than contributions less fees), on top of your regular tax rate. You may also substitute the beneficiary on your plan with another beneficiary and keep the contributions less fees in the plan until the new beneficiary decides to pursue post-secondary education or until the plan reaches its 35-year lifetime limit; whichever occurs first.
• Under certain circumstances, you may also roll the income into a Registered Disability Savings Plan (RDSP). See prospectus for full details.

You may also substitute the beneficiary on your plan with another beneficiary and keep the contributions less fees in the plan until the new beneficiary decides to pursue post-secondary education or until the plan reaches its 35-year lifetime limit; whichever occurs first.

Yes, a beneficiary can still apply for the EAP at a later date up until January 31st of the following year provided the required documents are forwarded to the Foundation. The late fee of $75.00 (plus applicable taxes) will be deducted from the EAP amount. To avoid this late fee, we encourage you to send us the EAP application as soon as possible or call our Customer Service Team prior to August 15th to advise us of your current circumstances. The Proof of Registration can be submitted at a later date at any time prior to January 31st of the following year.

For plans with a maturity date of July 31, 2014 or earlier, part-time registration will not enable the beneficiary to receive educational assistance payments (EAPs) under the scholarship option. For plans with maturity date of July 31, 2015 or later, part-time registration will enable the beneficiary to receive EAPs under the scholarship option. Under the self-determined option, beneficiaries will be eligible for EAPs under part-time studies regardless of maturity date of the plan.

A beneficiary (student) can access up to $2,500 of the income and grants for each 13-week period of study. The beneficiary will be required to register in a post-secondary course that lasts at least 3 consecutive weeks and is no less than 12 hours of study per month. Official confirmation from the Office of the Registrar will be required to facilitate this payment.

When the EAP package is mailed in spring of any given year, he/she may request to put the EAP on hold until January 31st of the following year. This extension may be requested in writing from the beneficiary by completing the EAP Application, by calling the Customer Service Team at or toll free at , or by contacting us via email at prior to August 15th.

Each condensed program has different criteria for completion, which is regulated by the post-secondary institution where such a program is offered. For example, if a beneficiary (student) is going to take 3 years to complete a 4-year program, there may be an opportunity for the beneficiary to receive all 3 EAPs under the scholarship option. For further details, please call our Customer Service Team by phone at or toll free at or contact us online

Canada Revenue Agency regulations confirm that apprenticeship programs qualify provided the student is registered in the minimum requirements as stipulated in the Income Tax Act (Canada). You can select from one of the three scholarship options, or you can select the self-determined option. Choose the option best-suited to the length of your beneficiary's term of study.

The Office of the Registrar is located on the campuses of post-secondary institutions. Through this office, students can register for their courses. The Registrar is also responsible for the record-keeping of all their files and course information.

The beneficiary (student) is required to complete the Personal Information section of the Proof of Registration form, sign, and date the form. The rest of the form must be completed, signed, and stamped/sealed by the Office of the Registrar at the post-secondary institution.

Please note that the original completed Proof of Registration form must be mailed to us for processing. Alternatively, we will accept a faxed copy transmitted from the Office of the Registrar only accompanied by a cover page. If the Proof of Registration form has been amended in any way, we can only accept a faxed copy transmitted directly from the Office of the Registrar.

After receiving the EAP package in the spring in any given year and if the beneficiary (student) realizes that he/she will not be able to submit the Proof of Registration form or the EAP Application before the August 15th deadline, he/she must request an extension. This extension is automatically granted up until January 31st of the following year and may be requested in writing from the beneficiary by completing the EAP Application, by calling the Customer Service Team at or toll free at , or by contacting us online. Please note that the sooner the Foundation receives the EAP Application and the Proof of Registration form, the earlier the EAP will be released (but not before the 2nd week of September).

For plans with a maturity date of July 31, 2014 or earlier, if the beneficiary is eligible to apply for an EAP however he/she has not completed the previous academic level successfully, he/she may request to defer the first EAP for a maximum of two years after the maturity date, one year at a time, to the beginning of the next EAP season. Further deferrals may be granted by the Heritage Educational Foundation at its discretion. If the first EAP has already been released and the beneficiary is eligible to apply for the second or third EAP, a deferral may be granted for a maximum of one year, to the beginning of the next EAP season. Further deferrals may be granted by the Foundation at its discretion.

For plans with a maturity date of July 31, 2015 or later, if the beneficiary is eligible to apply for an EAP, however he/she has not completed the previous academic level successfully, he/she can still apply for the EAP provided they are registered in eligible studies.

For plans with a maturity date of July 31, 2014 or earlier, if the beneficiary is eligible to apply for an EAP however he/she has not completed the previous academic level successfully, he/she may request to defer the first EAP for a maximum of two years after the maturity date, one year at a time, to the beginning of the next EAP season. Further deferrals may be granted by the Heritage Educational Foundation at its discretion. If the first EAP has already been released and the beneficiary is eligible to apply for the second or third EAP, a deferral may be granted for a maximum of one year, to the beginning of the next EAP season. Further deferrals may be granted by the Foundation at its discretion.

For plans with a maturity date of July 31, 2015 or later, if the beneficiary is eligible to apply for an educational assistance payment ("EAP"), however has not completed the previous academic level successfully, he/she can still apply for the EAP provided they are registered in eligible studies.

Alternatively, the beneficiary may also request to have the EAP held until January of the following year. The deadline to apply for the EAP on hold is January 31st.

The maturity date can be delayed one year at a time up to July 31st prior to the beneficiary's 21st birthday. This option can be selected on the maturity application under question 2, or by completing the maturity application online. Alternatively, subscribers may also request to delay the maturity date by sending a signed letter before the July 1st deadline. Such a letter can be sent using the following methods:

Mail:
Heritage Education Funds Inc.
2005 Sheppard Avenue East, Suite 700
Toronto, ON M2J 5B4 Canada

Fax:

Email:

Yes you can. The following conditions must be met:

• Both beneficiaries are under 21 years of age
• The new beneficiary is younger than the original beneficiary and is a resident of Canada at the time of the substitution.
• An EAP has not been forfeited or released to the current beneficiary
• For a plan in which only the Canada Education Savings Grant ("CESG") is held, to transfer the CESG to the new beneficiary, the new beneficiary must be less than 21 years of age and be a sibling of the original beneficiary or related to the original subscriber by blood or adoption. Otherwise, CESG will be repaid to the government. If the plan holds the CESG plus any of the other government grants, the new beneficiary must be less than 21 years of age and be a sibling of the original beneficiary.
• To transfer the Alberta Centennial Education Savings (ACES) to the new beneficiary, the new beneficiary must be less than 21 years of age and a sibling of the original beneficiary by blood or adoption. Otherwise, the ACES will be repaid to the Government.
• To transfer the Quebec Education Savings Incentive (QESI) to the new beneficiary, the new beneficiary must be less than 21 years of age and a sibling of the original beneficiary by blood or adoption. The new beneficiary must also be a resident of Quebec. Otherwise, the QESI will be repaid to the Government.
• The Canada Learning Bond (CLB) will be returned to the Government since this is not transferable.

• 
  If the self-determined option has been selected:
• A substitution may occur at any time with no age restriction, provided that an EAP has not been released to the current beneficiary.
• For a plan in which only the Canada Education Savings Grant (CESG) is held, to transfer the CESG to the new beneficiary, the new beneficiary must be less than 21 years of age and a sibling of the original beneficiary or related to the original subscriber by blood or adoption. Otherwise, CESG will be repaid to the Government. If the plan holds the CESG plus any of the other government grants, the new beneficiary must be less than 21 years of age and a sibling of the original beneficiary.
• To transfer the Alberta Centennial Education Savings (ACES) to the new beneficiary, the new beneficiary must be less than 21 years of age and a sibling of the original beneficiary by blood or adoption. Otherwise, the ACES will be repaid to the Government.
• To transfer the Quebec Education Savings Incentive (QESI) to the new beneficiary, the new beneficiary must be less than 21 years of age and a sibling of the original beneficiary by blood or adoption. The new beneficiary must also be a resident of Quebec. Otherwise, the QESI will be repaid to the Government.
• The Canada Learning Bond (CLB) will be returned to the Government since this is not transferable.
• If the new beneficiary is older than the original beneficiary, please note that the lifetime contribution limits for the new beneficiary may be exceeded which could result in additional tax for all subscribers of that beneficiary.

The Heritage Education Optional Insurance, underwritten by Sun Life Assurance Company of Canada, is available to protect the subscriber in the event that the subscriber suffers a disability or becomes deceased while still in the contribution period of the Heritage RESP plan.

If a subscriber becomes deceased before the maturity date of the ESP Contract (a Contract made between an individual (or an individual and the spouse of the individual) and the Foundation under which the Foundation agrees to issue EAPs), upon approval of the life claim, the insurance company will pay the life insurance benefit to the Foundation, to be used by the Foundation to satisfy the applicable contributions according to the terms of the ESP Contract.

If a subscriber becomes disabled before the maturity date of the ESP Contract, the insurance company will pay the disability insurance benefit to the Foundation after a 9 month qualifying period. Upon approval of claim, the insurance company will make the applicable monthly contributions according to the terms of the ESP Contract.

Qualifying period means 9 consecutive months beginning on the date the subscriber becomes disabled and ending on the date the subscriber qualifies for benefits.

Without the Heritage Education Optional Insurance coverage, the remaining subscriber (in the case of joint subscribers) or heirs of the subscriber will be required to continue with the contributions, if applicable, in order for the plan to remain in good standing.

You are qualified for insurance coverage if you have an ESP Contract (a Contract made between an individual (or an individual and the spouse of the individual) and the Foundation under which the Foundation agrees to issue EAPs) with the Foundation as a plan subscriber or joint subscriber and you are under the age of 65 on the date of application for insurance coverage. Please note that this coverage has a pre-existing condition limitation. For more information on this limitation and for other important information regarding this coverage, please speak with your Heritage Dealing Representative.

If there are joint subscribers to an ESP Contract, the first deceased or disabled subscriber will be deemed the insured person under the policy.

Insurance premiums are set out in your prospectus. If you have insurance on your plan, the premium is included in your monthly contribution amount however it will not attract any of the government grants.

Please contact us at locally or toll free at or email us at . One of our Customer Service Representatives will be glad to guide you through the steps of purchasing insurance.

Upon receipt of your termination request that is signed by the subscriber (if the plan is jointly held, both subscribers must sign the request), the insurance premiums will be refunded only if the insurance purchase date at the time of cancellation falls within 60 days from the later of:

1. The date the ESP Contract was accepted by the Foundation, and
2. The effective date of insurance.