Our financial adviser just called us, and it got me thinking about RESPs. Most people come out of university (or any post secondary education) with student loans. Student loans are a bitch and, if they are the government loans that most students in Canada get, can take 10 years to pay off at a rate of prime + 5%. In the meantime, these ex-students get married, have kids, and can barely afford to put money into their kids' RESPs because they are spending hundreds of dollars every month paying off their loans.
In our case, my husband had a mere $10,000 loan for 6 years of university (he's smart and got a whackload of scholarships). Be that as it may, his loan payments were amortized over 10 years and the payments were to be over $100 a month. That's a piddly loan comparison to most people. I'm sure most people are paying over $300 or $400 a month to pay their schooling off.
Here's my idea: give some sort of cut or lower interest rate to loan-payers who are contributing to an RESP. Really, by contributing to the RESP, you are trying to ensure that your child will not have to take out as large of a loan as you did, so you are helping the loan company (government, bank, mafia) not have to lend as much of their precious money in the future. Makes sense, no?
I should run for office, I know. I'm just that good.