Lifelong Learning Plan (LLP)

Go back to school

At a glance

What is the Lifelong Learning Plan (LLP)?

The Lifelong Learning Plan (LLP) lets you take money out of an RRSP to return to school and pay it back later. Note that you cannot use your RRSP to pay for your child's education.

Perfect if you are looking to:

Get financing to go back to school
Take out funds without paying income tax
Use your RRSP to pay for your spouse or common-law partner's education

Tip

Planning to study? Save on your banking services with our offers for students.

Who is eligible?

To qualify:

Be a full-time student
Enroll in an eligible program
Be a Canadian resident
Withdraw funds that have been in an RRSP for at least 90 days

Tip

You can use an RRSP loan or line of credit¹ to help pay for your studies. Note that your loan balance will come due once you withdraw from your RRSP.

Maximum withdrawal

$20,000 over 4 years

The annual limit is $10,000. Amounts over the limit will be counted towards your annual income for tax purposes. A couple can withdraw up to $40,000 to pay for their studies.

Tip

Need more financing? We offer other solutions to pay for school, such as a flexible student line of credit.²

Repayment period

10 year maximum

You must repay 10% of the amount withdrawn on an annual basis for the following 10 years. The unpaid balance will appear on your federal notice of assessment. Note that repayments do not count towards your RRSP contribution room but are also not tax-deductible, so the LLP will not affect your retirement savings.

Tip

Instead of making lump sum payments once a year, set up systematic savings to pay back your balance on the schedule that suits you best.

Meet with an advisor to start planning to go back to school.

Make an appointment

Little details that matter

Eligibility criteria for your training program:

Offered by a qualifying educational institution
Duration of at least 3 consecutive months
Minimum of 10 hours of classes or coursework per week, including:
- Lectures
- Practical training
- Laboratory experience
- Research for a thesis project

An RRSP loan or line of credit¹ can help you take advantage of the LLP to finance your studies.

Here's how:

Take out an RRSP loan or line of credit.
Put the money you borrowed in your RRSP (up to your contribution limit) and keep it there for 90 days. Interest charges may apply.
Withdraw the amount you need from your RRSP. Note that you will need to pay back your loan in full when you make this withdrawal.
Get a tax refund for contributing to your RRSP and use it to finance your studies.
Note that you have up to 10 years to pay back any funds you withdraw from your RRSP

Subject to credit approval by National Bank. Speak with your accountant, tax specialist or financial planner to see if this is the right strategy for you.
Subject to credit approval by National Bank.