British Columbia Training and Education Savings Grant
Families in British Columbia are encouraged to start planning and saving early for their children’s post-secondary education or training programs. To help, the B.C. Government will contribute $1,200 to eligible children through the B.C. Training and Education Savings Grant (BCTESG).
Who is eligible?
To be eligible for the $1,200 available via the B.C. Training and Education Savings Grant the following criteria must be met:
- The child was born in 2006 or later
- You and the child must be residents of British Columbia
- The child is the beneficiary of a Registered Education Savings Plan (RESP) with a participating financial institution
Budget 2016 provides an additional $39 million to extend the BCTESG program to children born on or after January 1, 2006, to help more parents and families save early for their child’s education.
When can I apply?
The earliest you can request the grant is when your child turns six. After that, you may apply any day before their ninth birthday.
Since this is a new program, if your child had their 6th birthday in 2013, 2014 or 2015, you have an extension until August 14, 2018 or the day before their ninth birthday, whichever is later to get the grant. If your child was born in 2006, you have an extension until August 14, 2019, to get the grant.
Grant application period for eligible children
|Birth Year||1st day of eligibility||1st day to apply||Last day to apply|
|2006||Child’s 6th birthday in 2012||August 15, 2016||August 14, 2019|
|2007||Child’s 6th birthday in 2013||August 15, 2015||August 14, 2018|
|2008||Child’s 6th birthday in 2014||August 15, 2015||August 14, 2018|
|2009||Child’s 6th birthday in 2015
from Jan 1, 2015 to Aug 15, 2015
|August 15, 2015||August 14, 2018|
|Child’s 6th birthday after Aug 15, 2015||Day the child turned 6||Day before the child turns 9|
|2010 or later||Child’s 6th birthday||Day the child turns 6||Day before the child turns 9|
More info here
Step one: The child is a beneficiary of a RESP
If the child has already been named to a RESP, make sure the RESP provider offers the grant. If not, you may open another RESP at a participating provider in order to receive the $1,200 B.C. Training and Education Savings Grant.
If the child has not yet been named to a RESP, choose the RESP provider that best suits your needs and ask if they offer RESPs with the option for the B.C. Training and Education Savings Grant.
To be eligible to receive the B.C. Training and Education Savings Grant, the RESP must be an individual (non-family) plan or a family plan in which all beneficiaries are siblings.
Step two: Fill out the B.C. Training and Education Savings Grant application at a participating financial institution
Required documents to prove B.C. residency:
- If this is a new RESP the parent/guardian and the child must have Social Insurance Numbers and one of the following:
- A valid British Columbia driver’s license;
- A British Columbia Identification Card (BCID card) with a picture;
- A British Columbia Services Card (new BC CareCard and driver’s license will be fully implemented in 2018);
- A British Columbia utilities bill (dated within the last 3 months and listing the current address of the custodial parent or the legal guardian). A utilities bill can be any one of: electricity, gas, phone, cable, water or garbage bills.
If approved, the $1,200 grant will be deposited directly into the RESP once the application has been processed by the Employment and Social Development Canada.
The money will arrive within about six to eight weeks after the application is made.
Each eligible child may get one grant of $1,200.
Please note that transferring the B.C. Training and Education Savings Grant from a RESP held at a participating financial institution to a non-participating financial institution may result in a loss of the grant.
Explore your options
You should shop around to find a RESP provider that does not require any contributions to open the RESP. Make sure the RESP you are opening qualifies for the B.C. Training and Education Savings Grant.
About RESPs and the Canada Education Savings Programs
RESPs are special education savings accounts registered with the Government of Canada to help you save for your child’s post-secondary education or training program. The money deposited in it grows tax-free until withdrawn.
RESPs can be left opened for up to 36 years and can be used by beneficiaries to pay for full-time or part-time studies in a qualifying college, university, trade school, or apprenticeship programs.
The Government of Canada’s www.canlearn.ca website has tips and resources that can guide families in choosing the right RESP and the right RESP provider.
Many RESP promoters do not charge any fees or require any minimum deposits, but it depends on the institution and the type of RESP.
Restrictions and Conditions
The grant must be used for post-secondary education or training purposes. Once the beneficiary is enrolled in full-time or part-time studies at a qualifying post-secondary educational program, the B.C Training and Education Savings Grant is withdrawn from the RESP by the way of Education Assistance Payment.
For more information, visit the Canada Revenue Agency website: http://www.cra-arc.gc.ca/
The grant can be used at any qualifying post-secondary education or training program in Canada or outside Canada.
In the event that the RESP is closed or the beneficiary chooses not to pursue a post-secondary education or training program, the B.C Training and Education Savings Grant will be returned to the Province of British Columbia.
The B.C. Training and Education Savings Grant is not considered as taxable income until it is taken from the RESP in an Educational Assistance Payment for post-secondary education. Once deposited into the RESP, it also grows tax-free.
However, money paid out of the RESP as an Educational Assistance Payment is taxed as income in the hands of the student. Since many students have little or no income while they attend post-secondary education, they can usually withdraw the money tax-free.
For more information on the B.C. Training and Education Savings Grant:
Employment and Social Development Canada
Canada Education Savings Program
Programme canadien pour l’épargne-études
Toll-Free Call center 1 888 276-3624
TTY Call Center 1 866 260-7723