InfoCapsule 13: Educational assistance payments

On this page

• List of acronyms
• Preface
• Eligibility criteria
• Processing an EAP
• EAP limits

Alternate format

A PDF version of the InfoCapsules for RESP providers is available on the index page.

Preface

Educational assistance payments (EAPs) consist of:

• education savings incentives, and
• earnings accumulated over the years

EAPs are paid from a Registered Education Savings Plan (RESP) for an eligible beneficiary. Their purpose is to assist with post-secondary education‑related expenses.

An EAP does not include contributions made by the subscriber.

Eligibility criteria

• The beneficiary must be a resident in Canada to receive:
  • the Canada Education Savings Grant (CESG), and
  • the Canada Learning Bond (CLB) portions in an EAP
• The beneficiary must be enrolled at a post‑secondary educational institution recognized by the Income Tax Act (ITA):
  • in-class or distance learning
  • full‑time or part‑time studies
• A beneficiary is eligible to receive an EAP for up to 6 months after ceasing to be enrolled at a post-secondary educational institution. The condition to do so is that they would have qualified for an EAP at the time they were enrolled

Processing an EAP

• The subscriber determines the timing and the amount of the EAP
• The RESP promoter is responsible for ensuring that:
  • beneficiaries meet EAP eligibility criteria
  • proof of post-secondary education enrolment has been provided
  • EAP amounts are within established limits
• The RESP promoter calculates the portion of EAPs which is attributable to each of the related notional accounts (earnings and incentives) using the Canada Education Savings Regulations legislative formula
• The RESP promoter must inform beneficiaries in writing of:
  • incentive amounts included in each EAP
  • their obligation to repay any CESG and CLB portion of EAP to which they are not entitled to, including any portion of CESG that exceed $7,200
• Each year the promoter must issue a T4A slip in the name of the beneficiary, as EAPs are taxable income for the beneficiary

The total amount of CESG available in the RESP is $14,200. If beneficiary A requests an EAP, the maximum possible amount for the payment in CESG is $7,200.

EAP limits

EAP requirements and limits according to studies