Typically, there are two types of RESPs available : Group or Individual.
WHAT IS GROUP SCHOLARSHIP PLAN?
Group scholarship plans are operated on a pooling principle where the beneficiary (child), named under a contract by a subscriber, will receive Educational Assistance Payments (EAP) when enrolled in a qualifying educational program (in this case full time attendance only). If the beneficiary ‘fails to qualify’ for payment, the earnings on contributions made by subscribers are distributed among other beneficiaries of the same age who do qualify.
Typically, a student will receive the highest amount of EAP when they attend four years of education. However, the group scholarship plans do not make EAP when a student repeats a program or an academic year. Furthermore, if a student attends a two or three year program, he or she will not receive all of the EAP.
WHAT IS AN INDIVIDUAL RESP PLAN?
A Individual registered education savings plan Calgary terms allow : full-time and part-time education, more flexibility without the restrictions of a group scholarship plan, a subscriber to determine when and how much to contribute as well as allowing the subscriber to direct when and how much the promoter pays Educational Assistance Payments (EAP) to the student.
A qualifying educational program is a course of study that lasts at least three weeks in a row, with at least 10 hours of instruction or work each week. A program at a foreign educational institution must last at least 13 weeks. Qualifying educational programs include apprenticeships, and programs offered by a trade school, CEGEP, college, university or institutions that are certified by the Minister of Human Resources and Social Development.