The impact of RESPs on financial aid and scholarships
The impact of Registered Education Savings Plans (RESPs) on financial aid and scholarships can vary depending on the type of aid or scholarship your child is eligible for.
RESPs are considered assets of the child, so they may be taken into account when determining financial aid eligibility.
This means that if your child has a large RESP, they may be considered to have more financial resources and may be eligible for less financial aid.
However, the money in an RESP is not considered income, so it will not be taken into account when determining eligibility for scholarships that are based on financial need.
Additionally, the Canada Education Savings Grant (CESG), which is a government grant that is added to RESPs, is not considered income or an asset when determining financial aid or scholarship eligibility.
This means that the CESG will not affect your child's eligibility for financial aid or scholarships.
In conclusion, the impact of RESPs on financial aid and scholarships can vary depending on the specific circumstances.
It's important to consider the specific financial aid and scholarship programs your child is eligible for and how RESPs may affect their eligibility.