Start here to begin your tour of the Scholarship Plan or learn on your own by clicking the numbered arrows.
Scholarship plan
The name of the scholarship plan.
Scholarship Plan Dealer
The name of the scholarship plan dealer (SPD). SPDs must be registered in your province or territory to provide this type of plan. Contact your local securities regulator for more information and to check registration.
Date
The date of the plan summary publication.
If you change your mind
Before you sign up for a plan, understand the rules regarding what happens if you change your mind. You have up to 60 days after signing your contract to withdraw from your plan and get all of your money back. After this time, you will be required to pay sales charges and fees, and you’ll lose any earnings on your money.
If you leave the plan
Leaving a Group RESP early may mean forfeiting all of your earnings. Understand what happens if you leave the plan before you sign up.
Who is this plan for?
This section explains the ideal investor for this type of plan. Scholarship plans offered by SPDs/scholarship plan providers in Ontario are required to have eligibility requirements that comply with the Income Tax Act (Canada)/CRA’s requirements. If you are not sure that you meet these requirements, this type of plan may not be right for you.
If this plan isn’t for you
Group RESPs are only one type of RESP. You may also consider an individual RESP or family RESP. These types of plans have fewer restrictions around contributions and qualifying education programs. Other plan options also allow you more control over the frequency of contributions and over the types of investments you can hold in your RESP.
What does the plan invest in?
This section provides information on what types of investment the plan will hold, and their potential risks and returns.
How do I make contributions?
How you choose to make contributions can affect the fees you pay and how much you can expect to have when you are ready to start making withdrawals. Understand your options for making contributions, and the minimum contribution you must make to abide by plan rules.
What are the risks?
All types of investments carry risk. Aside from the risks of the investments, Group RESPs carry additional risks. You must follow plan rules or you may lose your earnings, and may not receive any money for your child’s education. You may lose some or all of your money if you leave the plan before maturity, miss contributions, miss deadlines to apply for withdrawals, attend a post-secondary program not qualified under the plan rules or if your child leaves an education program early. Unlike family or individual RESPs, you do not have the option to close your RESP and retain your contributions in the case that your child does not continue their education.
Plans that did not reach maturity
The percentage of plans that did not reach maturity. Plans may not reach maturity for the reasons listed in the “What are the risks” section.
How much does it cost?
Group RESPs include upfront fees and ongoing costs. Understand the fees and costs before you sign up, and ask questions if you do not understand what you will pay.
Fees you pay
These are the fees you pay directly and will be deducted from the money you contribute to the plan. They reduce the amount of money you invest in the plan. These includes sales charges, processing fees and insurance premiums.
Fees the plan pays
These are the fees paid by the plan – you do not pay them directly, but the returns you earn on your contributions are reduced to cover these fees. These include administrative fees, portfolio management fees, custodian fees, and others.
Other fees
In addition to the fees you pay and fees the plan pays, additional fees apply if you make changes to your plan. You may also pay additional fees depending on how you decide to make contributions to the plan.
Are there any guarantees?
Group RESPs carry no guarantees. You may not qualify for payments from the plan, and you will not be able to find out how much you may receive. Plan payments may not cover the cost of education. This section also tells you about any coverage in case the plan goes bankrupt.
For more information
This section includes the contact information for the plan. If you do not understand the information in the plan summary document, contact the plan and ask questions. You can also contact the Ontario Securities Commission’s Contact & Inquiries Centre for information about scholarship plan dealers. Learn more about Group RESPs on GetSmarterAboutMoney.ca.
