Frequently Asked Questions about Heritage ESP

The Heritage International Scholarship Trust Foundation is a not-for-profit corporation, incorporated in 1983 for the purpose of encouraging and promoting the advancement of higher education through the provision of Educational Assistance Payments ("scholarships") to children pursuing post-secondary/tertiary studies.

The Heritage International Plan is a cooperative Education Savings Plan (ESP), established for the purpose of helping parents, grandparents and other interested individuals save towards the ever-increasing cost of a post-secondary/tertiary education. It is a time-defined, goal directed, dedicated savings program for parents or guardians who contribute on behalf of children who are under 14 years of age at the time of enrollment. Subscribers save towards the first year of post-secondary education and the Heritage International Scholarship Trust Foundation provides Educational Assistance Payments (EAPs)/Scholarships (from the compounded interest earned on the Plan, as well as from the enhancement fund. 

When you enroll a child in the Heritage International Scholarship Trust Plan you are purchasing "Units". The value of each unit varies depending on the age of the child and the contribution method you select. This means that the younger the child, the lower your contributions will be.

Contributions are safely invested in US dollar-denominated government bonds and investment-grade corporate bonds. A portion of the income earned on contributions is invested in U.S. dollar-denominated Exchange-Traded Funds that track the performance of major stock market indices in the U.S. and abroad to further enhance returns.

Income earned on the principal of the Plan may be invested in equities to further enhance potential returns. These US dollar-denominated government-guaranteed securities earn a consistent and competitive rate of return.

There is no clear answer for this because interest rates are not guaranteed. They vary, depending on current market conditions.

Tuition costs account for only a portion of post-secondary education expenses. The funds received from the plan can be used for other expenses aside from tuition including room and board, books, a computer and software, special courses, and traveling costs. Payments are paid out to the student or the Subscriber, not to the school, and may be used however they deem necessary.

Tax is not payable by the subscriber on the return of principal (contributions fewer fees). The Subscriber or the Beneficiary should consult with their own tax advisor regarding the tax consequences for any interest that is earned and received on the Plan.

A subscriber has 90 days from the due date of the contribution to make the required contribution(s) or the plan will fall inactive. Reminder notices will be sent after 30 days.

A one-time membership fee of US $110 per unit is deducted from early deposits. The Fee is used to help cover the administration costs and is non-refundable. Also, a maximum annual depository fee of US$50 per year, per plan (depending on contribution frequency) is charged for processing the contributions and maintaining the plan.

A Beneficiary is eligible for the first Scholarship Payment in the year after the plan matures. This is usually the year in which he/she reaches the age of 19. The year of eligibility may be changed if a Beneficiary qualifies before the time, or successful completion of IB or CAPE 1&2 may be used to trigger early release. 

Anyone of legal age who wishes to help provide for a child's future education, including parents, grandparents, uncles, aunts, friends, and godparents.

No, you may select our Self-Determined Option no later than 60 days prior to the date your Plan matures. At maturity, this option permits you to take your principal and the income earned on your plan.

In the event of a Subscriber's premature death, the Self-Completion Feature may provide for the return of the accumulated Principal upon maturity of the Plan and payment of three years of EAPs/Scholarships as if all contributions were made. To be eligible the Subscriber must be the parent, grandparent, or legal guardian of the Beneficiary. (See the Prospectus or the Education Savings Plan Contract for full details.)

The Plan may be used for another child, providing the substituted Beneficiary is the same age or younger than the original child. If there is no other child to take advantage of the Plan, the Subscriber may request a full refund of all contributions (including membership and depository fees). The Subscriber may also continue to make contributions and at maturity select the Self-Determined Option.

In the event of total disability lasting more than 9 continuous months, all future contributions will be waived until recovery or completion of the Plan, whichever occurs first. This applies if a Subscriber is the parent, grandparent, or legal guardian of the Beneficiary and satisfies the requirements, Medical proof is required.

We're so confident about the Heritage International Scholarship Trust Plan that we offer a 60-day money-back guarantee. If during this initial period you are dissatisfied, we'll return your contributions in full, less insurance premiums if applicable. If you terminate after the 60-day period, contributions made will be refunded, less Membership fees, insurance premiums (if applicable), depository charges and any interest earned.

Yes! Your Plan may be transferred to another beneficiary, if both are under the age of 22 and before the first EAP/scholarship is paid to the original Beneficiary. To transfer the Plan to an older beneficiary, both beneficiaries must be under the age of 14.

You’ll receive a refund of contributions excluding Membership fees, less depository charges and insurance premiums, if applicable. The interest remains in the scholarship pool and is divided amongst all qualifying students entering college or university in the same year.

The Maturity Date can be advanced if your child becomes a qualified student prior to the year originally specified in the agreement.

*An interest adjustment may apply.

The Plan may be reinstated by a Subscriber at any time within three years after termination or the inactive period. This can take effect if the child is, at the time of reinstatement, under 14 years of age or within 6 months after becoming inactive or terminated, if the child is 14 years of age or older (but not after the Maturity Date).

The Plan provides for automatic postponement of the first EAP/Scholarship for up to two years. Further postponements may be considered at the discretion of the Scholarship Committee upon written request.

Additional units may be added at any time, provided that the child is still under 14 years of age.

Your child can attend any post-secondary/tertiary institution anywhere in the world as long as it is an accredited, recognised institution.