What Can an RESP Be Used For? Expenses and Withdrawal Types

An RESP can be used for any reasonable cost tied to a beneficiary’s post-secondary education once they are enrolled in a qualifying program. That covers tuition and mandatory fees, textbooks, required equipment and tools, internet access, rent or residence fees, meal plans or groceries, and transportation to and from school. The plan holds two pools of money — your contributions and the combined investment growth plus government grants — and each follows its own withdrawal rules, but both can be directed to the same wide range of education expenses.

What Counts as a Qualifying Program

Before any education-related withdrawal can happen, the beneficiary has to be enrolled in a qualifying educational program at a post-secondary institution. Under the Income Tax Act, a qualifying program must last at least three consecutive weeks and require at least ten hours per week of coursework or program-related work.¹ Universities, community colleges, trade schools, and vocational institutions certified to provide occupational skills training all fit.

Part-time students qualify under a separate category, a “specified educational program.” It also runs at least three consecutive weeks, but the time commitment drops to twelve hours per month of coursework.² That lower threshold opens RESP funds to students juggling school with work or family.

Schools outside Canada are allowed too. For universities abroad, a program lasting at least three consecutive weeks qualifies. For non-university institutions abroad, the program must last at least thirteen consecutive weeks.³ The focus is on how the program is structured and how long it runs, not what the student is studying. Specialized trades training is treated the same as a traditional degree.

Eligible Expenses

Once the beneficiary is enrolled, RESP money can be put toward a broad list of costs. The Government of Canada identifies eligible expenses as including tuition, books, tools, transportation, and rent.⁴ That list is not exhaustive. The real test is whether the spending is reasonable and connected to the student’s education.

Tuition, Fees, and Course Materials

Tuition is the most common use, along with mandatory institutional charges like student association fees and lab costs. Required learning materials and tools also qualify:

Textbooks and course materials, whether printed or digital, including specialized software needed for coursework
Equipment required by the program, such as laptops, lab supplies, or trade-specific tools
Internet access needed for online classes, research, and assignments

Living Expenses During School

RESP funds also support the student’s day-to-day life while they are studying. On-campus residence fees and off-campus rent for housing used during the academic term are both acceptable. So are meal plans through the institution and groceries for students living independently. Transportation costs — transit passes or fuel for commuting to campus — qualify as well.³

The practical result is that withdrawals can be shaped around each student’s situation. A graphic design student might put a lot toward computer hardware. A nursing student might direct funds to clinical supplies. A student living away from home will spend more on rent and food than one commuting from the family home. As long as the expense is reasonable and tied to pursuing the program, the use is permitted.

The Two Withdrawal Types

Money comes out of an RESP as one of two payment types, and each follows different rules. The distinction matters because it affects how much can be withdrawn, who pays tax, and in some cases what documentation is required.

Post-Secondary Education Payments

A Post-Secondary Education (PSE) payment is a return of the subscriber’s original contributions — the money you personally deposited over the years. Because those contributions were made with after-tax dollars, PSE withdrawals come out tax-free and carry no dollar limit.³ The subscriber requests the withdrawal and can direct the funds to the beneficiary for education expenses.

Educational Assistance Payments

An Educational Assistance Payment (EAP) draws from the other pool: investment earnings in the plan plus all government grants, including the Canada Education Savings Grant, the Canada Learning Bond, and any provincial incentives.² EAPs are paid to the beneficiary and are taxable as income in the beneficiary’s hands. Because most full-time students have low overall income, the tax owed on EAPs is often minimal or zero.

The federal government caps EAP withdrawals early in enrollment:

Full-time students can receive up to $8,000 in EAPs during the first thirteen consecutive weeks of enrollment. After that initial period, there is no fixed dollar cap on further EAP withdrawals.
Part-time students can receive up to $4,000 for each thirteen-week period of enrollment. Unlike the full-time rule, this per-period cap continues to apply throughout the student’s studies.

The CRA also publishes an annual reasonableness threshold as a guideline for RESP promoters. For 2026, that threshold is $29,459.⁵ EAP withdrawals above this amount in a single year may trigger additional review by the promoter, but they are not automatically denied if the expenses justify the total.

Proof of Enrollment

Before releasing an EAP, the RESP promoter will ask to see official proof of enrollment from the beneficiary’s institution.³ Enrollment confirmation letters or registration documents should be requested early each academic term so withdrawals are not held up when tuition or rent is due. Receipts for specific expenses are generally not required at the time of withdrawal, but families should keep records in case the spending needs to be justified later.

If the Funds Aren’t Used for Education

RESP money is designed to pay for a qualifying program. If the beneficiary never pursues post-secondary education, the subscriber can change the beneficiary to another eligible child, withdraw the earnings as an Accumulated Income Payment (with tax consequences), or in some cases transfer earnings into an RRSP or an RDSP.² Any government grants that were not used for education — including the CESG, Canada Learning Bond, and provincial incentives — must be repaid when the plan is closed for non-educational purposes. The subscriber’s original contributions always come back tax-free.

1
Department of Justice. Income Tax Act 118.6
2
Canada.ca. Registered Education Savings Plans Payments, Transferring and Rolling Over Registered Education Savings Plans Property
3
Government of Canada. Pay for Education Using the Registered Education Savings Plans and Related Benefits
4
Canada.ca. Registered Education Savings Plans and Related Benefits
5
Canada.ca. Registered Education Savings Plan (RESP) Bulletin No. 1R3