What happens to the RESP if my child doesn't go to university?
By Deborah Edokpayi, Zenith Advisory Inc., Saskatoon · Updated October 2026 · 3 min read
First: "university" is the wrong word
The RESP pays for almost any post-secondary program at a recognised institution: community college, polytechnic, trade school, apprenticeship, many programs abroad, and part-time studies. Most children who don't go to university do one of these.
Second: there's no rush
The plan can stay open for 36 years after it's opened. A child who takes a gap year, works for five years, or goes back to school at 28 can still use it.
If it's truly never used, what happens to each part
Other options before closing it
- Transfer to a sibling. In a family plan this is automatic. In an individual plan, you can usually transfer to a sibling under 21 and keep the grant.
- Wait. Thirty-six years is a long time.
- Partial use. Even a one-year certificate program lets you withdraw grant and growth in the child's hands at low tax.
The bottom line
The worst case is that you get your own money back and lose the grant you never would have had anyway. The best case is a child who finishes school without debt. That asymmetry is why we open RESPs for every client with children.
Want this worked out for your numbers? We'll set up the plan, make sure every grant is collected, and show you what it grows to.
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