Using an RESP to Pay for a Foreign University or College

Foreign schools qualify for RESP withdrawals

An RESP is not limited to Canadian universities and colleges. The Canada Revenue Agency recognizes many universities outside Canada as designated educational institutions, so a child studying abroad for a full degree still uses RESP savings, including government grant money, to pay for it.

Confirm the school qualifies first

Before your child accepts an offer abroad, ask your RESP promoter to confirm the specific school and program qualify. Established degree-granting universities generally qualify more easily than shorter vocational or certificate programs abroad.

Get this confirmed in writing before you commit to tuition deposits or a lease, since an unrecognized school means EAP and PSE withdrawals are not available for that enrolment at all.

Full-time enrolment for a minimum period

Studying at a foreign institution requires full-time enrolment for a minimum continuous period, and this threshold is set differently than the minimum for a Canadian program. Ask your promoter to confirm the exact minimum length that applies to your child's specific program before you count on RESP withdrawals covering a short exchange or a single summer session abroad. A full semester or academic year at a foreign university normally meets the requirement; a short standalone course is the case to double check.

Get proof of enrolment from the foreign registrar

Your promoter needs the same kind of proof of enrolment it needs for a Canadian school: a letter from the school's registrar, records office, or international student office confirming your child's name, program, full-time status, and the start date of the term. An offer of admission is not enough on its own. Ask the foreign school's international office directly what document they issue for this purpose, since the wording and process differ by country.

The withdrawal rules work the same way

Once the school qualifies and you have proof of enrolment, the same withdrawal rules that apply to any RESP apply here. Your own contributions come back tax free with no cap. Government grant and growth money comes back as an Educational Assistance Payment, capped for the first 13 weeks of a new enrolment.

If the school does not qualify

Without a designated educational institution, withdrawals do not count as EAP or PSE payments.

Money taken out becomes an Accumulated Income Payment for the grant and growth portion, taxed at your marginal rate plus an additional 20 percent, and grants get returned to the government.

Confirm designation status before your child enrols, not after accepting an offer.

Plan for currency and banking

Your promoter pays out in Canadian dollars into a Canadian bank account, not directly to a foreign school in local currency. Build in time to convert and transfer funds before a foreign tuition deadline, and ask your promoter how far in advance it needs the enrolment documents to release payment before departure.

Exchanges are different from transferring schools

A short exchange term or a study-abroad placement organized through a Canadian university differs from transferring to a foreign school for a full degree. If your child stays registered at the Canadian school while studying abroad on exchange, RESP withdrawals typically continue under the Canadian school's enrolment, not the foreign institution rules. Confirm with your promoter which rule applies to your child's specific arrangement.

Checklist before you enrol

• Ask your promoter to confirm the specific foreign school and program qualify

• Confirm the minimum full-time enrolment length that applies

• Request a written enrolment or registration letter from the foreign registrar, not just the admission letter

• Confirm how far in advance your promoter needs documents to pay out before a tuition deadline

• Ask what happens if your child later transfers, withdraws, or takes a leave partway through the foreign program