Planning for your child’s future education is one of the most meaningful financial decisions you’ll ever make. Tuition in Canada continues to rise, and without preparation, post-secondary costs can become overwhelming. That’s where Canadian Scholarship Trust enters the conversation.
For over six decades, Canadian Scholarship Trust has helped families prepare for education expenses through structured RESP savings plans. But is it the right fit for you?
In this comprehensive guide, we’ll explore:
- What Canadian Scholarship Trust is
- How Canadian Scholarship Trust RESP plans work
- Benefits and potential drawbacks
- How it compares to other RESP options
- Key facts every parent should know
Let’s break it down in a clear, practical way.
What Is Canadian Scholarship Trust and Why It Matters
The Canadian Scholarship Trust Foundation (CST Foundation) is a non-profit organization established in 1960 to promote access to post-secondary education through savings and awards programs.
CST operates and distributes Registered Education Savings Plans (RESPs) through CST Savings Inc., helping families invest for education while benefiting from government grants.
Their mission is simple: make education more accessible and affordable through disciplined savings and financial education.
Because education costs in Canada continue to increase (Statistics Canada reports steady tuition growth)
Having a structured RESP strategy has become more important than ever.
How Canadian Scholarship Trust Plans Work
Understanding how Canadian Scholarship Trust RESP plans operate is key to deciding whether they fit your goals.
At its core, a Canadian Scholarship Trust RESP combines:
- Your contributions
- Federal government grants
- Investment growth
- Tax advantages
When you open a Canadian Scholarship Trust RESP, your plan is registered with the Canada Revenue Agency (CRA). That registration allows access to government programs like the Canada Education Savings Grant (CESG).
Government information on RESP and CESG
Canada Education Savings Grant.
Here’s how the process works:
- Open a Canadian Scholarship Trust RESP
- Contribute regularly
- Receive government matching grants
- Investments grow tax-deferred
- Withdraw funds for eligible post-secondary education
The key advantage? Growth inside the RESP is tax-free until withdrawal.
Canadian Scholarship Trust Plans Explained
Canadian Scholarship Trust offers several RESP structures designed for different family needs.
Here’s a simplified breakdown:
| Canadian Scholarship Trust Plan | Best For | Risk Level | Key Feature |
| Advantage Plan | Families wanting professional management | Moderate | Diversified managed portfolio |
| Group Savings Plan | Structured, disciplined savers | Lower | Pooled contributions with scheduled payouts |
| Individual Plan | Single beneficiary flexibility | Variable | More personalized contribution structure |
| Family Plan | Multiple children | Moderate | Funds shared across siblings |
Each Canadian Scholarship Trust plan has unique contribution rules and fee structures, so reviewing the prospectus is essential.
Plan prospectus and financial statements.
Government Grants in Canadian Scholarship Trust RESP Plans
One of the strongest features of any Canadian Scholarship Trust RESP is access to government support.
Canada Education Savings Grant (CESG)
The federal government adds:
- 20% on the first $2,500 contributed annually
- Up to $500 per year
- Lifetime maximum of $7,200 per child
Example:
If you contribute $2,500 per year, the government adds $500 annually. Over time, that’s thousands of additional dollars toward tuition.
Some families may also qualify for additional grants depending on household income.
Canadian Scholarship Trust Advantage Plan: A Closer Look
The Canadian Scholarship Trust Advantage Plan is a professionally managed option that adjusts investment allocation as the child approaches post-secondary age.
Official Advantage Plan details
Key features include:
- Diversified portfolio (fixed income and equities)
- Age-based asset allocation adjustments
- Professional portfolio oversight
This plan is often ideal for families who:
- Prefer a hands-off investment strategy
- Want structured growth
- Value long-term planning discipline
Benefits of Choosing Canadian Scholarship Trust
Let’s look at the advantages of Canadian Scholarship Trust RESP plans.
- Long History and Credibility
Founded in 1960, CST has decades of experience.
- Professional Management
CST plans are managed by experienced investment professionals.
Investment management overview.
- Government Grant Access
All Canadian Scholarship Trust RESP plans qualify for federal grants.
- Scholarship and Awards Programs
The CST Foundation also offers annual awards and bursaries.
In 2025, CST announced approximately $290,000 in awards and bursaries available to students.
Considerations Before Choosing Canadian Scholarship Trust
No financial product is perfect for everyone. Here are important considerations:
Fees
Some RESP providers, especially online brokerages may offer lower management fees.
It’s important to review CST’s official fee disclosure in the prospectus.
Flexibility
Group plans often require strict contribution schedules. Missing payments may affect participation.
Investment Control
If you prefer selecting individual stocks, ETFs, or funds, a self-directed RESP through a brokerage may provide more control.
Tax Advantages of Canadian Scholarship Trust RESP
RESPs provide major tax benefits:
- Contributions are not tax-deductible
- Investment growth is tax-deferred
- Withdrawals are taxed in the student’s name (often lower tax bracket)
This structure can significantly reduce overall tax burden compared to regular investment accounts.
Common Questions About Canadian Scholarship Trust
Who Can Open a Canadian Scholarship Trust RESP?
The beneficiary must:
- Be a Canadian resident
- Have a valid Social Insurance Number
Government eligibility details.
What If the Child Doesn’t Attend Post-Secondary Education?
Options may include:
- Transferring to another eligible beneficiary
- Rolling investment income into an RRSP (subject to conditions)
- Withdrawing contributions (grant portions may need repayment)
Canadian Scholarship Trust vs Other RESP Providers
Here’s how Canadian Scholarship Trust compares:
| Feature | Canadian Scholarship Trust | Bank RESP | Online Brokerage RESP |
| Professional management | Yes | Yes | Optional |
| Government grants | Yes | Yes | Yes |
| DIY investing | Limited | Limited | Full control |
| Fee structure | Moderate | Moderate | Often lower |
| Scholarship programs | Yes | Rare | No |
Your decision ultimately depends on:
- How involved you want to be
- Your fee sensitivity
- Your comfort with investment management
Should You Choose Canadian Scholarship Trust?
If you value:
- Structured, long-term savings
- Professional oversight
- Scholarship opportunities
- Established reputation
Canadian Scholarship Trust may be a strong choice.
If you prefer:
- Lower fees
- Full investment control
- Flexible contribution schedules
You may want to compare with bank or brokerage RESP options.
The Canadian Scholarship Trust has built a long-standing reputation in Canada’s education savings landscape. With structured RESP plans, access to government grants, professional investment management, and scholarship support, it remains a credible option for families planning ahead.
But like any financial decision, the right choice depends on your family’s needs, risk tolerance, and desire for flexibility.
Education is one of the most powerful investments you can make. Whether you choose Canadian Scholarship Trust or another RESP provider, the most important step is starting early.
