Why Say No To Group Scholarship Plans

1. You can only contribute same or more base on the original agreement, if less, you will have penalties. If you missed payment for one year or more, you will again pay penalty.
2. There are $200 per unit administration fees, you will only get the full refund til the end of the contract.
3. If your children go to school earlier than maturity date, you will lose some money.
4. If your children drop out from post-secondary education, you will also lose some of your money.
5. If you want to terminate the plan, you will lose the administration fees, depends on how many units you have bought. The more money you have contributed to the plan, the more unit you purchase, and therefore the more administration fee there is. (I purchsed about 7 units so far($4000 total contribution) and my penalty is apx. $1400 if I choose to withdraw now).
   For a simple and easy self-directed RESP account, please refer to my previous article “How To Open TD RESP Account”.