For Immediate Release
November 6, 2008

Families embrace education savings approach to keep up with the rising cost of higher learning

After decades of escalating tuition fees and cuts to student aid, attending a Canadian university has reached unpalatable new height. The continual transformation of the higher education system toward a high-fee, high-loan finance model has many families swapping their wait-and-see attitude for a more practical and long-established approach. For over fifty years, registered education savings plans (RESPs) have been helping Canada’s scholars reach for the stars.

Determined to help her children reduce a potentially massive education debt, Nelma Cabiling of Toronto enrolled both of her children in the Global Plan (registered education savings plan).

“The Global Plan is a great tool for parents who want to invest in their children’s future. As a parent, I feel that it is my job to create opportunities for my children so that they can accomplish goals I didn’t have the opportunity to achieve,” she says.

With regular contributions, Nelma will be able to save enough money to significantly reduce the financial burden higher learning can impose. The $9,200 in government grants will add to her savings as will a $10,000 supplement she won when her ballot was selected winner in Global’s $10,000 Autumn Contest.
Data published by Statistics Canada earlier this month shows that the cost of tuition is again on the rise. Canadian students attending university will pay 4.7 per cent more for tuition, on average, this academic year compared to the previous year. The report also showed a 3.7 per cent average increase for graduate fees. And the bad news doesn’t end there. Canadian universities could also be forced to cut student aid, scholarships and funding for various programs as early as next spring due to multimillion-dollar losses in their investment holdings.

Tuition has increased 135 per cent since 1990, making higher education increasingly unaffordable to low-income families. Without significant long-term, predictable and stable public funding, Canada’s colleges and universities will not have the resources required to reduce tuition fees.

“I have high hopes for my children and I want them to have the opportunity to attend college or university. The last thing I want is for them to give up on education simply because paying for it is an issue,” concludes Nelma.

The Global Plan, when registered as an RESP, allows tax sheltered growth for funding a child’s post-secondary education. The Plan can be used to pay for tuition and other expenditures such as books, supplies and accommodations. If a maximum amount is entered into an RESP account each year, the Canada Education Savings Grant (CESG) and the Canada Learning Bond can add up to $9,200 in extra savings. Deposits to the Global Plan can conveniently be made on a monthly, quarterly, semi-annual or annual basis. In the event the named beneficiary does not attend a post-secondary institution, the money can either be transferred to another beneficiary or into an RRSP account.

In addition to offering individual plans, the Global Plan also offers group savings options. To learn more about the unique benefits of the Global Plan, go to www.globalfinancial.ca or visit us at trade shows across the country.

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Media inquiries, please contact:

Maja Begovic or Rudy Bartolome
Marketing and Communications
Global family of companies
Tel: (416) 741-7377 ext. 3501
Fax: (416) 741-8987
Email: media@globalfinancial.ca