Last Updated on August 17, 2025
The Canadian Scholarship Trust (CST) is one of the most recognized education savings organizations in Canada. For decades, CST has helped families prepare for the rising costs of post-secondary education by offering flexible and structured savings options. This article explores how CST works, its benefits, and why it may be an essential tool for your family’s financial planning.
What is the Canadian Scholarship Trust (CST)?
The Canadian Scholarship Trust is a not-for-profit foundation that administers Registered Education Savings Plans (RESPs) in Canada. Established in 1960, CST was created to make higher education more accessible and affordable by encouraging families to save early. Unlike individual savings, CST pools contributions from many families, creating a stronger investment portfolio that can deliver long-term growth.
How the Canadian Scholarship Trust Works
Families contribute money regularly into their CST account, which grows tax-deferred. The Canadian government also supports RESPs with grants such as:
- Canada Education Savings Grant (CESG) – up to 20% of contributions annually, capped at $500 per child.
- Canada Learning Bond (CLB) – targeted assistance for low-income families.
CST invests these funds in diversified portfolios designed to generate steady returns while maintaining security. When the child enters post-secondary education, the funds are withdrawn to cover tuition, books, and other related expenses.
Benefits of the Canadian Scholarship Trust for Families
The CST offers multiple advantages:
- Tax-advantaged growth: Contributions grow tax-free until withdrawal.
- Government support: Families benefit from CESG and CLB grants.
- Structured planning: CST ensures disciplined saving habits.
- Peace of mind: Parents can be confident about covering future education costs.
Statistics: Education Costs in Canada and RESP Growth
The cost of education in Canada has been steadily increasing. According to Statistics Canada:
- The average undergraduate tuition in Canada was $6,834 for the 2022/23 academic year.
- Over 50% of Canadian parents now use RESPs to save for their children’s education.
- Families with RESPs save on average 2.5 times more than those without.
These numbers highlight why tools like the Canadian Scholarship Trust are so critical for long-term planning.
Common Questions About the Canadian Scholarship Trust
1. Is the Canadian Scholarship Trust safe?
Yes, CST is a regulated, not-for-profit organization with decades of trusted experience.
2. What happens if my child doesn’t attend post-secondary school?
Families can transfer RESP savings to another beneficiary or roll them into a retirement plan (RRSP), subject to conditions.
3. Are there fees involved?
Yes, like most RESP providers, CST charges management fees, but these are balanced by government grants and long-term growth.
Conclusion
The Canadian Scholarship Trust provides a reliable and structured way for Canadian families to prepare for the growing costs of education. With tax advantages, government grants, and decades of trusted service, CST remains one of the most popular RESP providers in the country.
We at Invest Education believe that such establishments need to be introduced to more countries in the world as education is getting more expensive and more important at the same time. This is an excellent opportunity if you are a parent in Canada to build capital for your children’s education so they do not need to go into student loans and pay them for the next 20 years.