Everything RESP

R-E-S-P-E-C-T... find out what it means to me! Oh... oops, got carried away, were not going to be talking about THAT resp. What were really going to be talking about is the Registered Education Savings Plan. Many of us might have one but are not sure how to access it or might not even know what it is. Since I have one it's only fitting I pass on the knowledge to YOU. After reading this blog post you will be filled in on everything you need to know about this awesome thing from accessing it, to the lingo around it, and definitions, becoming RESP experts!

What is an RESP?
An RESP is money that has been put aside for you (incoming first year student). This money was put aside for you in hopes you would use it in the future to pay off school, and is usually put aside by your parents, family members, or even friends. This money grows, and grows (through more payments, and interest) leaving you here today with money to use for your school- how sweet is that?! (give a shout-out to the peeps who did that for you!)

How can you access money from your RESP?
In order to access money from your RESP you have to prove that you will be going to school (as this is the purpose to the RESP, and therefore the only way you can access it). You will want to do a Verification of Enrolment (VOE)

Note: The money that is coming from your RESP is called an Education Assistance Payment (EAP).

How do I verify that I will be going to school in September?
Many times, your RESP Provider (the financial institution that is essentially watching over your RESP), will send some forms (VOE) that says you need to get stamped and filled out by your university, in order to receive an EAP. This does not apply for York University students. York University does things a little more conveniently so you don't have to travel to York to get it filled out.
What you want to do is go to this website: http://www.registrar.yorku.ca/program/letters/ and go to the tab that says RESP. This will provide you with access to VOE letters that you can send to your RESP Provider (as opposed to the letter they told you to fill out). The letter you get through the website will be accepted by your RESP Provider!

Note: You have to pay your $450 enrolment fee before you can get an RESP letter through the website!

RESP section under the Financial Services website.
This is where you can generate a VOE to send to you RESP Provider. 

Which letter should I send my RESP Provider?

When you go on the website that will generate an RESP letter for you, you will be faced with two options:

The two options you have for a VOE letter. 

Unless your RESP Provider has asked for specific, more detailed information (which happens rarely) the Online VOE Letter will be the one you want (this is the one I use)! Just click to access the letter, log-in with your YorkU username, and password and it will take you to a VOE letter, personalized with all your information!

What do I do with the VOE letter?
Simply print this letter, and send it to your RESP Provider! It's that easy! Your RESP Provider will usually give your EAP in 2 installments, either through your bank account (if you sent them a void cheque) or they will send a cheque!

More Questions?
If any of you guys have any questions feel free to ask it in the comment section below, or feel free to check out the Government of Canada website!

And to end it off, who doesn't like some classic 60's music (cause I sure do!)

                    

Goodluck with your RESP everyone! :)

Categories: finances, money, RESP, yorku