Investing contributions in government bonds and other debt securities provides absolute safety of investment capital. This strategy along with the additional components that make up the education payment can result in superior returns. The makeup of an education payment has many parts with only a portion of return attributed to the investment returns of the subscriber's own capital. There can be as many as six components to the education payment:

The ultimate value of each education payment cannot be predicted or guaranteed, as it will depend on the relative amounts of each component. The component amounts will vary from year to year, however it is expected that each progressive education payment for a particular child will become larger for each of the second, third and fourth payments.

In order to assist your education investment planning please refer to our illustration calculator where you can enter the age of your child and amount you wish to contribute to determine what the current education payments are based on 2009 amounts paid by Canadian education savings plans with similar features. Go to "Steps to enroll in the STI Education Plan" to link to the calculator.

You are encouraged to plan your savings level based upon a target return and then monitor actual results annually. Students Trust International sends an annual mailing, usually by mid-Februrary of each year, that includes an annual report, audited financial statements and an annual statement to each subscriber, which provides up to date illustrations of their plan value based upon the most recent payouts. You can always increase the amount of coverage you have up to the time your child turns 13 years old if you feel that the expected Plan values will not be enough to cover the education costs of your child.

Below is table which shows how all of the components of the education payments are progressing in terms of accumulation of funds for future education payments:

 

Canadian Dollar Plan Documents
Canadian $ Plan

 

2009

2010
2011

2012

Total Plan Assets (in M$)

$46.10

$51.80
$54.48

$58.90

Interest on Investments

6.05%

6.55%
8.67%

5.74%

Non Qualifiers Interest

$90,332

$147,096
$162,008

$175,300

Enhancement Account

$411,525

$505,350

$528,023

$629,700

Return of Enrolment Fee

$256,873

$335,006

$358,328

$397,911

Donation from the Foundation

$300,000

$260,000

$80,000

$225,000



 

US Dollar Plan Documents
US $ Plan

 

2009

2010
2011

2012

Total Plan Assets (in M$)

$10.40

$12.90
$16.94

$19.59

Interest on Investments

13.51%

7.98%
5.45%

5.88%

Non Qualifiers Interest

$3,249

$25,045
$20,271

$40,353

Enhancement Account

$74,187

$81,031
$120,768

$133,788

Return of Enrolment Fee

$58,350

$67,094
$78,478

$96,732

Donation from the Foundation

$56,000

$65,000
$50,000

$50,000

Please contact us for detailed information on each component.

While there is no investment risk to obtaining the superior returns, there is what is referred to as a program risk. The program is a long-term savings vehicle. Subscribers who withdraw from the program are not entitled to receive any income from the Trust and children who do not qualify for college or university education will not receive any education payments.

Canadian Dollar Plan Documents



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US Dollar Plan Documents