The pursuit of post-secondary education for your child is a central financial goal for many Canadian families. The cost of a university degree or trade certification is high. Registered Education Savings Plans (RESPs) offer a powerful, tax-advantaged solution. They ensure a financial foundation for future studies. The Canadian Scholarship Trust (CST) is a key provider in the Canadian RESP landscape. CST Savings Inc. is the distributor of the plans.
CST has evolved significantly since its founding in 1960. Today, CST offers two distinct Registered Education Savings Plan (RESP) pathways. These two pathways are the CST Advantage Plan and the flexible CST Spark portfolios. The CST Advantage Plan is a Group RESP. It follows a fixed contribution schedule and pools investment returns. The CST Spark is a modern, Individual or Family RESP option. You should understand the differences completely before choosing a plan.
The non-profit CST Foundation provides an important social mission. The foundation supports access to higher education. In 2025, the foundation awarded nearly $300,000 to 45 Canadian students through its bursary program. These awards include the Founders’ Awards and Bursary Awards. The CST Foundation’s bursaries support students. The awards help students overcome financial barriers. Your investment in a CST RESP contributes to this philanthropic effort.
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CST Plan Analysis, Fees, and Lawsuit Status
The CST master brand offers two fundamentally different RESP products. You must understand their structures. The CST Advantage Plan is a Group RESP. The CST Spark plans are Individual or Family RESPs. The differences impact flexibility.
CST Advantage Plan (Group RESP)
The CST Advantage Plan is the company’s traditional product. This plan has a structured schedule. You pay contributions on a fixed schedule.
| Feature | Detail | Facts |
| Plan Type | Group RESP (pooled investment) | CST Advantage Plan is a Group RESP. |
| Sales Fees | Deducted from contributions upfront | Sales charges are deducted upfront. |
| Investment | Primarily low-risk bonds and fixed income | Investment principal is protected by bonds. |
| EAP Payment | Paid in up to four annual installments | EAP payments are divided into four installments . |
| Loss Risk | Early withdrawal may result in principal loss | Early withdrawal risks loss of principal. |
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CST Spark Education Portfolios (Individual/Family RESP)
CST Spark is the modern, digital-first alternative. It is more comparable to bank or robo-advisor RESPs. The CST Spark portfolios are flexible.
| Feature | Detail | Facts |
| Plan Type | Individual or Family RESP (mutual funds) | CST Spark plans are flexible RESPs. |
| Sales Fees | Small, one-time fee of $50 or less | CST Spark charges a low one-time fee. |
| Investment | Target-date funds with varied risk levels | Spark portfolios usetarget-date funds. |
| Flexibility | Contribution amounts and frequency are flexible | Contribution schedule is fully flexible. |
| EAP Payment | Withdrawals are flexible, not installment-based | EAP withdrawals are not installment-based. |
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Understanding Fees and Consequences
Fees determine your final education savings value. Group RESPs have a complicated fee structure. Understanding the fees is essential.
Upfront Fees and the “CST Problem”
The CST Advantage Plan charges a Sales Charge (or enrollment fee) per unit. This Sales Charge is deducted from your very first contributions. This is a front-loaded fee structure. The front-loaded fee structure reduces the amount invested initially. If you cancel early, you lose the portion of your contributions paid toward these fees. You forfeit the investment income earned on your money. The lost income benefits the remaining members of your group. CST Spark fees are much lower.
Latest Lawsuit Status (2025 Update)
A class-action lawsuit is currently active against several Group RESP providers in Quebec. This lawsuit alleges excessive fees. The lawsuit names CST Consultants Inc. as a defendant. This ongoing litigation concerns the fees charged for Group RESPs. The court has approved settlements with other providers. The case against CST is continuing on its merits.
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Managing Your Account and Withdrawing Funds
Successful RESP saving requires knowing how to access your money. The CST process differs by plan type.
Account Access
- CST Login: Users log in through either the CST Savings portal or the CST Spark portal.
- Epargne CST Login: This French login accesses the Quebec version of the CST portals.
- Proof of Enrollment: To receive money, the subscriber must provide proof of the student’s enrollment.
Education Assistance Payments (EAPs)
EAPs are the investment earnings and government grants portion of the RESP. They are paid to the student. EAPs are taxable income for the student.
- CST Advantage: EAPs are typically released in four fixed, annual installments. The full balance may be conditional on completing a four-year program.
- CST Spark: EAPs are flexible. They can be withdrawn in lump sums as needed.
- Maximum Limit: The maximum EAP withdrawal is $8,000 during the first 13 weeks of full-time studies.
CST’s Social Mission and Awards
The CST Foundation fulfills the non-profit’s mandate. The foundation offers valuable awards. In 2025, the foundation awarded $290,000 in bursaries and awards. CST Founders’ Awards reward students. Bursaries are provided to students with financial needs. The awards assist students in accessing post-secondary education.
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Alternatives to CST
Many low-cost, flexible RESP options are available in Canada. These alternatives are often better for long-term growth.
| Alternative Provider | Key Fee Structure | Primary Benefit |
| Robo-Advisors (e.g., Wealthsimple) | Low MERs (e.g., 0.5%) | Lowest fees and fully automated investing |
| Major Banks (e.g., TD, RBC) | Mutual Fund MERs (e.g., 1.0%–2.0%) | Convenience and access to in-person advice |
| Self-Directed Brokerage | Near-zero trading commissions | Highest control and lowest long-term cost |
The “Transfer Out” Solution
If you hold a CST Advantage Plan, transferring is an option. You should calculate the upfront sales charges already paid. For young children, taking the small initial loss is usually financially wise. You transfer the remaining money to a low-cost plan. A transfer avoids years of low returns and plan rigidity. A new provider like a robo-advisor handles the transfer process.
