Tuesday, March 11, 2008

RESP plan

In case you haven't heard, the liberals have come out with a plan to make savings for college tuition tax deductible. Making college affordable is a worthy goal, especially for somebody in my position. This plan is not the right way to go about it.

Most middle class families are already saving for their kids education. For these people the plan is simply a tax cut. Putting more money into the hands of people that are already doing alright. I would be in favour of increasing financial aid for people who really need the money, the plan would be more effective and less expensive.

Either way, it doesn't stand much of a shot at becoming law.

1 comment:

megs said...

Middle class kids will also be more savvying at navigating loans - poorer kids who grasp at anything to get into school won't be, simply because their parents won't have the guidance for them. They'll also be more likely pushed into getting scholarships, since they'll more likely have the free time and extracurricular activities to get them. Which is why my husband from NB has a terrible personal loan, while I, middle class, went to a much more expensive school and came out with no money owed.