Need a Source? - Federal Budget 2008: more flexibility for education savings plans

    Education savings provider available to discuss how budget helps parents
    save for child's post-secondary education

    TORONTO, Feb. 27 /CNW/ - Finance Minister Jim Flaherty announced on
February 26th that the 2008 Federal Budget includes measures to provide more
flexibility to families who save through Registered Education Savings Plans
    Canadian Scholarship Trust Foundation (C.S.T.) commends the federal
government for encouraging families to save for their child's post-secondary
by increasing the time that RESPs may remain open to 35 years from 25 years,
and by extending the maximum contribution period by 10 years.
    "Increasing the time limits and contribution periods for RESPs creates
more flexibility for families," says Peter Lewis, Vice President, Canadian
Scholarship Trust Foundation. "The federal government is clearly signaling the
importance of preparing early for a child's post-secondary education through
these changes as well as the 2007 budget changes that eliminated annual RESP
contribution limits and enhanced the Canada Education Savings Grant. The
tax-free savings account introduced in the 2008 Budget could also be used to
supplement RESP savings. Our experience indicates that saving for a child's
education, regardless of the amount, increases the probability of a child
going on to higher education."
    An RESP is an education savings plan registered under the Federal Income
Tax Act that helps families save for post-secondary education. Income earned
on contributions grows tax-free until a child is ready to attend college,
university or even trade school.

    Peter Lewis is available to talk about how parents can maximize their
education savings potential and make these changes work to their benefit. He
can also discuss how additional government incentives can help supplement
education savings.

    The Canadian Scholarship Trust Foundation, founded in 1960, is the oldest
and largest provider of RESPs in Canada, with more than $2.3 billion in assets
under administration. Its mission is to promote the benefits of higher
education and improve access by reducing financial barriers.

For further information:

For further information: To arrange an interview, please contact:
Tonique Harry, Gillian McArdle, (416) 504-8464,,

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