Headquartered in Canada, Canadian Scholarship Trust is a foundation that provides bursaries to students of all ages who are entering post-secondary education for the first time and who’s not capable financially to access post-secondary education.
The company’s line of business includes the management of funds, trusts, and foundations organized to support the pursuit of higher education through financial assistance and partnership with learning-focused community organizations. Since 1960, Canadian Scholarship Trust have helped over 900,000 families access post-secondary education.
In addition, this article will provide a guide on Canadian Scholarship program and everything you need to know about it.
Table of contents
- What Is The Canadian Scholarship Program?
- Canadian Scholarship Trust Eligibility
- Overview Of Cst Scholarship Plans
- What Happens If My Beneficiary Does Not Have a Social Insurance Number?
- What Is An EAP?
- What Are The Contribution Limits For Canadian Scholarship Trust?
- Best Canadian Scholarship Trust Programs
- Recommendation
What Is The Canadian Scholarship Program?
The Canadian scholarship Trust program specialized in providing Registered Education Savings Plan (RESP), Financial Services, and Education.
Also, the Canadian Scholarship Trust (CST) is intended for students who demonstrate financial need, and whose financial need may make it difficult to pursue a post secondary education. The scholarship can also be used to cover the cost of tuition as well as school related expenses such as books and supplies or living expenses.
The foundation also offers savings plan. helps Canadian families invest in a better future for their children, it also makes it easy to save for post-secondary education with expert guidance, reliable RESP options, and a proven investment approach.
Canadian Scholarship Trust Eligibility
Canadian Scholarship Trust considers candidates for a scholarship based on:
1. Academic Qualifications
Candidates must meet the entry requirements of a post secondary education in Canada
2. Financial Ability
The CST Foundation Bursaries are awarded to students who require financial assistance to access post-secondary education for the first time. Also, applicants must be students whose parents did not attend post-secondary education.
3. Other Requirements
- Application Form
- Letter(s) of Reference/Recommendation
- Transcript
- Essay
Overview Of Cst Scholarship Plans
A Sponsorship plan is a type of investment fund that is designed to help you save for your child’s post secondary education. Your plan must be registered as a Registered Education Savings Plan (RESP) in order to qualify for Government Grants and tax benefits.
To do this, your Social Insurance Numbers for you and the person you name in the plan as your beneficiary is required.
What Happens If My Beneficiary Does Not Have a Social Insurance Number?
Your education savings plan does not qualify as an RESP until it is registered under the Income Tax Act (Canada). Therefore, the foundation will apply to register your plan with Canada Revenue Agency on your behalf. However, they cannot register an education savings plan agreement without Social Insurance Numbers (SINs) for both the Subscriber and any Beneficiaries.
Hence, you must normally supply SINs for any Beneficiaries within 24 months of your Application Date. You have the option to wait until the Beneficiary has a SIN to purchase a scholarship plan.
An unregistered education savings account is not eligible for tax benefits or grants.
What Is My Rights As An Investor
You have the right to withdraw from your contract and get back all of your money (including any fees or expenses paid), within 60 days of your application date.
If your plan is cancelled after 60 days, you will only get back your contributions. Any Government Grants you’ve received will be returned to the government. Hence, You can find out more about these right by consulting a lawyer.
What Is An EAP?
In general, Educational Assistance Payment (EAP) is a payment made to your Beneficiary after the maturity date for eligible studies. An EAP consists of your income and your Government Grants. For CST Advantage Plan (a group plan), an EAP consists of your Government Grants, income on your Government Grants, your Beneficiary’s share of the EAP Account and the Group Plan Bonus.
Guide on how To enroll in Educational Assistance Payment
- Complete an application and any applicable Government Grant applications and supply your social Social Insurance Number. Spouses or common-law partners may apply as joint Subscribers. Each Subscriber’s Social Insurance Number is required at the time of enrolment to register the Plan as an RESP under the Income Tax Act (Canada)
- Designate a Beneficiary for CST Advantage Plan or Individual Savings Plan. Designate one or more Beneficiaries for Family Savings Plan. Each Beneficiary must be a Canadian resident. Multiple Beneficiaries must be (i) all siblings; (ii) all family members of the Subscriber; and (iii) all under the age of 21.
- Provide your Beneficiary’s Social Insurance Number within 24 months of your Application Date so that your plan can be registered.
- If your Beneficiary qualifies for Canada Learning Bond and/or Additional Canada Education Savings Grant. have the Beneficiary’s primary caregiver complete the form designating your plan as the one to receive these grant.
- CST Advantage Plan:
- Choose the amount you wish to contribute (which will determine the number of Units you purchase)
- Select a Contribution schedule
- Individual/Family Savings Plan:
- Choose an initial Contribution amount
- Establish a Contribution schedule of your choice
- Submit the application through your sales representative
- When your application is accepted, you will have entered into an education savings plan agreement which will be your Contract. A copy of the Contract will be provided to you.
What Are The Contribution Limits For Canadian Scholarship Trust?
While none of CST Plans imposes a limit on Contributions that can be made, the total of all Contributions for any Beneficiary is subject to a lifetime limit of $50,000 under the Income Tax Act (Canada).
Government Grants are not included in calculating Contribution limit. So, if you make Contributions that exceed this limit. There are tax consequences.
Best Canadian Scholarship Trust Programs
Below are Plans Canadian Sponsorship Trust currently offer:
1. CST Advantage Plan
The CST Advantage Plan is a group Scholarship plan designed to help you save for a child to start their post secondary education in the same year. Beneficiaries are generally grouped based on their age. The amount of EAPs received by your Beneficiary will be based, in part, on the experience of your Beneficiary Group.
There are two main exceptions. Your child will not receive EAPs, and you could lose your earning, Government Grants and Grants contributions room, if:
- Your Child does not enroll in a school or program that qualifies under this plan, or
- you leave the plan before it matures
You are eligible to enroll in this plan if:
- Your child is under 13 years of age
- Your child is a Canadian resident within the meaning of the income Tax Act (Canada)
The plan is suitable if you are fairly sure that:
- You are comfortable making contributions on a regular basis and on time
- you intend to stay in the plan until the maturity date
- You are planning for your child to attend three or four years of post secondary education
If you change your mind
You have up to 60 days after signing your contract to withdraw from your plan and get back all of your money.
2. Canadian Scholarship Trust Individual Savings Plan
The Individual Savings Plan is an Individual Scholarship plan designed to help you save for a child to be enrolled in any post-secondary education that qualifies under the Income Tax Act (Canada). You may change or stop the amount of your contribution at any time.
There are no service fees to make this change nor are any losses incurred by you or your Beneficiary. Also, There are two main exceptions. Your child will not receive EAPs, and you could lose your earnings, Government grants and grant contribution room, if:
- Your child does not enroll in a school or program that qualifies under this plan, or
- You leave the plan before your beneficiary enrolls in Eligible Studies
This Plan is suitable if:
- You can to save for one Beneficiary
- You want Flexibility over when and how much to contribute to your plan
- you are fairly sure that your Beneficiary will attend a qualifying school or program under the plan
- You want control over when and how much to withdraw from your plan for your Beneficiary’s education.
The individual savings plan generally has fewer restrictions and is mote flexible than the group scholarship plan, CST Advantage plan although it also has lower potential returns.
If you change your mind:
You have up to 60 days after signing your contract to withdraw from your plan and get back all of your money.
3. Canadian Scholarship Trust Family Savings Plan
The Family Savings plan is also designed for you to save for your children’s post secondary education. The moment you open your family savings plan, CST will apply to the Canada Revenue Agency to Register the plan as a registered education savings plan (RESP).
This allows your savings to grow tax-free until the child named as the beneficiary of your plan enrolls in their studies. Also, To register your plan as an RESP, CST need Social Insurance Numbers for yourself and the child you name in the plan as the beneficiary.
You are eligible to enroll in this plan if:
- Your beneficiary is your child, grandchild or great grandchild and under the age of 21 years
- Your beneficiary is a Canadian resident within the meaning of the income tax act (Canada).
Who is the Canadian Scholarship Trust Family Savings Plan Suitable For?
It iis suitable if:
- You want to save for one or more children who are siblings
- you want more flexibility over when and how much to contribute to your plan
- you are fairly sure that one or more of your beneficiaries will attend a qualifying school or program under the plan
- You want control over when and how much to withdraw from your plan for your beneficiary‘s education
If you change your mind
- You have up to 60 days after signing your contract to withdraw from your plan and get back all of your money.
Your plan is registered with the Canada Revenue Agency to become a Registered Education Savings Plan, which provides you with certain tax benefits. Each Plan qualifies as a registered education savings plan and assuming such status is maintained, no tax is payable Under Part I of the Income Tax Act (Canada) on the Income of the Plan.
Your Contributions to an RESP are not deductible by you for income tax purposes. As such, your Contributions are not taxable when withdrawn from the Plan, either at the Maturity Date or another time.
There are various people running the plans in Canadian Scholarship Trust, they are: The Investment Fund Manager and Principal Distributor, C.S.T. Savings Inc., Plan Sponsor, Trustee and Custodian, Portfolio Managers, BMO Asset Management Inc., CIBC Asset Management Inc., C.S.T. Asset Management Inc., Fiera Capital Corporation, TD Asset Management Inc., Auditor, and Independent Review Committee.
Conclusion
As mentioned earlier Canada Scholarship Trust is a foundation that provides bursaries to students of all ages who are entering post-secondary education for the first time. It is also available for students who are not capable financially to access post-secondary education. This article has provided a guide on Canadian Scholarship Trust and everything you need to know about it and we hope it is helpful to your search.
