Scholarship Trust Fund

While the Scholarship Trust Fund is an option, GP Wealth Management does not provide this form of education funding.

A Scholarship Trust Fund is a Group or Pooled Savings Plan for education funding. They generally have age restrictions as to when an account can be open for a child and an age limit for claming scholarships. However, with the government relaxing many of the rules related to education savings plans the Scholarship Trust Fund may have some features that appeal to investors.
Each individual's contributions and the Federal Government's portion are pooled and invested in government guaranteed investments.

The savings in an Scholarship Trust Fund earn interest that compounds in a tax shelter. The accumulated funds or principal balance is returned to the contributor (subscriber) at the plan's maturity. The accumulated interest and Federal Grant is returned to the student, intended to assist with the expenses of a post-secondary education. Although the Scholarship Trust Fund is intended for those who pursue post-secondary education, the government has relaxed the ruling whereby should the student not continue post-secondary studies, the subscribers can receive their principal, interest, and interest of the Federal Grant and pay any tax or penalties in return.