Lifelong Learning Plan Canada 2025 — RRSP Withdrawal for Education

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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 Repayment Calculator

Total LLP Withdrawal Amount ($, max $20,000) Year of Last Withdrawal

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)

Finance Your Education Smarter

While repaying your LLP, KOHO helps you track spending and save efficiently. No monthly fees, real-time balance, and cashback on purchases.

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