Lifelong Learning Plan Canada 2025 — RRSP Withdrawal for Education
The Lifelong Learning Plan (LLP) lets you withdraw up to $100 per year (maximum $20,000 lifetime) from your RRSP to finance full-time training or education for yourself or your spouse. Withdrawals are tax-free and must be repaid over 10 years. This is a powerful option for career changers and people returning to school later in life.
LLP Eligibility Requirements
- You or your spouse/common-law partner must be enrolled as a full-time student at a qualifying educational institution
- The program must be at least 3 months long
- You must be enrolled or have received a written offer before March of the year following the withdrawal
- You cannot participate if you are already making LLP repayments (must repay first)
- RRSP funds must have been in the account for at least 90 days
LLP Withdrawal Rules
| Parameter | Amount |
|---|
| Maximum annual withdrawal | $100 |
| Maximum lifetime withdrawal | $20,000 |
| Repayment period | 10 years |
| Repayment start | 5th year after first LLP year, or 2nd year after ceasing full-time studies |
Tip: Both spouses can each access up to $20,000 under the LLP (for their own education). A couple can access $40,000 in total. This is separate from the Home Buyers' Plan — you can use both if eligible.
Repayment Rules
LLP repayments begin in the 5th year after the first calendar year you made an LLP withdrawal, or the 2nd year after the year you leave full-time studies — whichever is earlier. Each year, you contribute to your RRSP and designate it as an LLP repayment on Schedule 7. If you don't repay the annual minimum, that amount is added to your income for that year.
LLP vs. Student Loans
The LLP can supplement student loans by providing a tax-free source of funds from your retirement savings. Key considerations:
- Unlike student loans, there is no interest on LLP funds
- But you must repay into your RRSP (missing payments triggers tax)
- Your RRSP loses the tax-sheltered growth during the period the funds are out
- Best used when you have meaningful RRSP savings and plan to repay quickly after graduation
Qualifying Educational Institutions
A qualifying educational institution includes:
- Canadian universities, colleges, and technical institutes
- Educational institutions certified by Employment and Social Development Canada (ESDC)
- Certain foreign universities (for students studying abroad)
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