Richard Canfield explains why maxing out an RESP leaves a funding gap for expensive schools. If you max your RESP, you get $4,000 for a year. An Ivy League education costs far more, so students need to borrow elsewhere.
Questions this video answers
$4,000
They would only get 4,000 out of the existing resp using the same RESP money if it was maxed out in the way that it was.
So that's in reference to how much they could add from a student loan perspective, given all the conditions. If they had a maxed RSP because of what's available, it reduces how much they could top up if necessary. So if they elected an educational institution that was more expensive, Ivy League school of some kind, where the costs were even far more extensive than what we've already discussed, they would be severely limited to what allocation of capital where they would be able to tap into because the resps wouldn't be sufficient, and what they'd be able to access in a student loan scenario just wouldn't be. So they have to do some other additional borrowing to make that make up the gap. Is that correct?
Borrowing are other sources of funding that has to come from somewhere.