Education Assistance Payments

Education Assistance Payments

Payments from your RESP during the post-secondary years are called Education Assistance Payments (EAPs).  An EAP is a payment made directly to the students to help pay for the cost of post-secondary studies including tuition, lodging, books, transportation and food.  Since EAPs are taxable to the student, there is usually little to no tax to pay.  This tax advantage is one of the key benefits of investing in an RESP.  Once enrolled in an eligible program, your student will request an EAP which includes the government grants and income earned while in the plan.

Requesting or delaying an EAP

To request an EAP, your student will provide us with proof of their enrolment in an eligible post-secondary program.  Acceptable proof or enrolment is an enrolment letter or confirmation of enrolment.  Alternatively, your student can ask the Registrar to complete a section on the withdrawal form for your plan type. 

EAP Online: You can request or delay your EAP online through our secure login.

In a Flex First or Family Single Student Plan?

For individual plans, like Flex First and our Family Singles Student Plan, you choose the amount and timing of your EAPs. You can request your EAP from the time your student is enrolled in post-secondary program, up to 6 months after it has finished.  Simply complete the Education Assistance Payment Withdrawal form.

In a Family Group or Classic Plan?  November 1 is an important date.

With Family Group and Classic plans, EAPs are paid on a more structured schedule starting the year after the plan matures.  They are paid in two installments each year, over three different years.  EAP eligibility differs by plan type.  The deadline to respond is November 1st, but the sooner your student makes the request, the sooner they will receive their money.  If your student is not going to school this year, they will have to delay their EAP in order to remain eligible next year.   November 1st is also the deadline for your student to delay their EAP. You can request or delay your EAP online through the login for Family and Classic plans.

For more information about requesting or delaying an EAP, download our EAP Instruction Sheet.

In a Heritage Plan? August 15 is an important date.

With the Heritage Plan, EAPs must be requested by August 15th.  It is fast and easy to do this online through our secure login for Heritage Plans.

EAP Withdrawal Limits

The Income Tax Act applies limits to the withdrawal amounts at the beginning of your student’s studies, as outlined in the chart below

Program Type

Description

EAP Withdrawal Limit:

Full-time studies in Canada
 

At least 3 weeks long with 10 hours of course work per week

First 13 consecutive weeks: $5,000 maximum
After first 13 consecutive weeks: $22,000 maximum

Part-time studies in Canada
 

At least 3 weeks long with 12 hours of course work per month

Each 13-week semester: $2,500 maximum

Full-time studies outside of Canada

At least 3 weeks long at a university, or 13 weeks long at a college or other type of educational institution

First 13 consecutive weeks: $5,000 maximum
After first 13 consecutive weeks: $22,000 maximum

What if your student decides not to pursue a post-secondary education?

It’s important to know that an RESP can remain open for 35 years. That’s good news if your student has decided to postpone or prolong their post-secondary education and they are in an individual plan.  But if your student is not going to pursue post-secondary studies in an eligible program or recognized institution, you have other options.  You can transfer the plan to another student within the allowable timeframe or you can consider one of the other ways to withdraw funds from your plan.  We are here to help you understand the different options.

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Program Eligibility

To take advantage of the government grants in your RESP, your student must be enrolled in a qualifying program when funds are withdrawn.

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Students can request their EAP online!

Students can login to our secure site to request or delay their EAP online. Or track the status of their payments

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Forms & Resources

  • Instructions to Request or Delay an EAP

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  • Education Assistance Payment Withdrawal Form

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  • Maturity Instructions

    Read More

We’re here to help

If you have any questions about withdrawing funds from your RESP from Knowledge First Financial, please contact our Customer Service team.

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