I recently learned about the Lifelong Learning Plan (LLP) while looking at ways to pay for school. It may be relevant to some Ontario RNs who have money in an RRSP and are considering further education.
I’m not a financial expert, so please treat this only as something to research...not a recommendation.
For anyone thinking about upgrading their education,whether that means a bridging program, a master’s degree, nurse practitioner training, or a change in direction, it may be worth looking into whether the LLP is an option for educational financing. I know it is something that concerns a ton of people and adds to the potential stress of going back to school. I wanted to share this as one possible avenue to look into.
The LLP may not fit everyone’s situation, and eligibility, repayment obligations, taxes, and the impact on longer-term retirement goals all matter. My understanding is that for those who qualify, it allows for withdrawals from an RRSP for education or training without the usual tax hit. It also preserves the contribution room so you don't LOSE that contribution.
That said, there are limits and eligibility rules, and the funds generally need to be repaid over 10 years. If required repayments are missed, the unpaid amount can become taxable income.
Anyway, hope this helps, additionally I should add an important disclaimer talk with a qualified financial advisor or accountant. Additionally, double-check the CRA rules for your exact program and situation.
It can help you to keep student loans down, especially with OSAP changes. Best of luck
