For my regular readers you have read along with the epic saga of the RESPs that I had opened, used, and depleted for my oldest daughter (and the journey continues for my other two daughters). RESP the end game is quite simply the collapse of the RESP that you set up to pay for your child’s education.
At the end of this post I will include a link to many of these posts (or you could search my site for RESP as well). This drama would make Shakespeare or Homer proud, with its twists and turns, rules, forms and frustrations, however for my oldest daughter her Post Secondary Odyssey is complete (for now).
During her 4 year journey, she applied for Student Grants along the way (and actually received a few), however, the system (in Ontario) is such that you cannot receive OSAP (no not the Ontario Stereo Assistance Program) Grants without taking the Loans as well. I argued a few times with different disembodied voices on the phone (who used a tone which suggested I was either insane, a crackpot or just plain uniformed) that this was the case, if your daughter deserves a Grant she must also take the Student Loan as well. I would equate that to Homer’s Medusa in terms of dramatic silliness.
Every year after first year, each student who received a loan, receives a letter from the National Student Loans Service Centre saying, “It’s time to pay back your loans! (unless you went back to school, then you can ignore this letter)”. Each year we dutifully ignored that letter, until this year, and now the letter includes a plethora of forms on how to set up paying back your student loans.
Luckily with my daughter we actually put her loan money aside, to pay off the loan as soon as it became due, so I (or my wife more likely) dutifully started reading through the forms to figure out how to do this exact thing (i.e. make a lump sum payment to pay off the loan). This is not as easy as you think. It seems easy to do, after you have made your first “installment” (where installment is a direct withdrawal from an account you have nominated, complete with a monthly interest charge accrued in that as well).
Here is where I now stand, I am attempting to have my daughter pay off her loan, without actually paying any interest charges, however, it is not clear how to do this. There is a question into the NSLSC folks asking that exact question, and after investigating on the TD Bill Paying portion of my on-line banking NSLSC is actually there to make payments too, so I am hoping, we can simply make this lump sum payment directly onto the loan, and thus it is all over and dealt with.
Am I confident this will be the case? No, my guess is my daughter will end up paying at least 1 month in interest charges while the system answers questions or gives confusing answers that foil our attempt to not pay interest, but hope does spring eternal.
Anybody else have any luck with all of this?
Some older RESP Posts from the Past:
- Canada Learning Bond and RESPs, where I think I have figured out more money, that I have never actually ever received thanks to TD not doing what I think they should.
- RESP and more tree died (which they did this year too), which is last year’s installment on the entire RESP saga.
- RESP Wrinkles where I first learned taking out money from an RESP wasn’t going to be as easy as the previous year.
- RESP Money to get Money where I found out how much it cost to prove I just spent $2500
- RESP: The Old Switcheroo where I rant about one Universities trick for getting more money out of me
- RESPs and Rules taking your own money out shouldn’t be this hard, should it?
- RESP: Withdrawals Redux then I learned that call centers and local branches do not talk nor really acknowledge each other’s existance
- RESP: This Round Finally Ends (Prologue) I actually try to start taking money out of the RESP
- RESP: Lessons Learned it’s important to write down what you have learned so you remember it for the next time.
- RESPs and High Mutual Fund Fees points out that so many RESP providers rely on you buying their High MER funds.
There are others simply search for RESP on my search block and you will see them.