Financing an Education
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.
Options for paying for school
Being a student is an exciting time in someone’s life, whether you’re continuing your studies as an adult, just heading off to post-secondary school, or saving for your child’s education. There are many financing and funding options available to pay for school-related costs — a Libro Coach can help you build a plan that works for you.
Student Line of Credit
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.
Libro’s student award program supports youth who demonstrate outstanding commitment to their community while balancing academic success.
Talk to a Coach about Registered Education Savings Plans (RESPs)
Invest in RESPs and watch them grow along with your kids. RESPs are a tool useful to access education needed for a bright future. Talk to us about getting started.
- Save for post-secondary education for your children or grandchildren
- Money grows, tax-sheltered
- Government matching grants and learning bonds can increase savings
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Once the beneficiary starts at a qualified post-secondary school, money can be withdrawn with proof of enrollment.
The portion that you’ve contributed can be withdrawn in part or in full.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.