Saving for Education
With education costs increasing every year, a financial plan that balances your everyday expenses with saving for the future is essential, whether you're saving for your child's education or financing your own.
A Libro Coach can help you build a plan that let's you live your life today while saving for the future.
Libro has financing options to help cover the costs of post-secondary education for full-time students in universities, colleges and apprenticeship programs. The Student Line is a line of credit where students may borrow up to $10,000 per year to a maximum cumulative amount of $40,000 subject to credit approval.
Student Line allows a student to borrow only the amount they need when they need it.
You must be a full-time student to qualify (an approved co-borrower may be required), and interest is paid monthly, with principal repayments starting one year after you leave school.
Registered Education Savings Plans (RESPs)
- Save for post-secondary education for your children or grandchildren.
- Money grows, tax sheltered.
- Government matching grants, learning bonds and more can increase your savings significantly.
Withdrawing from your RESP
- Once the beneficiary starts at a qualified post-secondary school, money can be withdrawn with proof of enrollment.
- The portion that you’ve contributed can be withdrawn in part or in full. It's good to remember the principle: " Money is non-taxable but the growth is taxable".
- The portion made up of government grants must go to the beneficiary and is fully taxable. Also, during the first 13 consecutive weeks of enrollment, there is a withdrawal limit of $5,000 on this portion. After that, the limit does not apply as long as the student has been enrolled in a full-time program within the previous 12 months. Different rules will apply for part-time students.
RESP rules can be complex. A good first step is to meet with a Libro Coach who will work with you to determine a contribution and withdrawal strategy that's best for you and your family.