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Thanks, here are details.
Canada Learning Bond
5 C1 O$ z& b* R- f, _7 d8 GThe Federal Government, in the 2004 Budget, introduced the Canada Learning. K$ |1 ?( G5 |* W5 n6 ]* {
Bond. The Bond is aimed at helping low-income families save for their children’s
0 I+ g7 e8 m+ mpost-secondary education pursuits. Beginning in 2004, each child born to lowincome) p! w# Y4 [$ d, Z2 I9 b, v. d
families, those earning $35,000 or less and who are also entitled to receive
Q% |8 Q2 R" t6 V5 athe National Child Benefit, will receive a $500 Canada Learning Bond.
8 ~7 b* H! {. v4 VAssuming a child remains qualified for the Canada Learning Bond, the child will
/ N* A g: s" {continue to receive $100.00 in each subsequent year in Canada Learning Bond
: C0 L6 I* T6 m9 ?installments. The Federal Government projects that the Canada Learning Bond will2 }: H$ p2 d+ t; z' D5 ^
carry a cost of up to $85 million this year and up to 120,000 children will benefit1 V7 c$ k7 E, r
from the program2. The government says a child living in a low-income household' K+ ~1 ^% u; k. h! I; o
could receive up to $2,000 for their education.4 R* c3 v0 w5 O0 O
Additionally, in terms of post-secondary education and low-income families, the
; Y5 U3 B; ]/ |government has introduced a new one-time grant of up to $3,000 for first-year( ^$ u, }, ~1 ~: Q& P
students whose family income hovers around $35,000 or less a year.7 ^! x6 I! m/ \
Alberta Centennial Education Savings Plan Act
8 p' K6 Q% z9 _, O" oDuring the 2004 Spring Sitting, the Alberta Government introduced and6 @2 o8 x# y. ^ z8 w% E: |
subsequently passed the Alberta Centennial Education Savings Plan Act. The
& D1 q/ K: v; R& d. r, Jprogram created by the Act is available only to residents of Alberta who have
, ~4 \% o, p- d+ B0 U* G: N: Wchildren born after January 1, 2005 (Alberta’s Centennial). The program, at first
1 L! d4 J5 |! x" c6 d. H# Oglance, seems quite simple in scope but it does have many intricate details that,
H8 U2 t& Q* sonce communicated, reveal a complicated program that relies on proactive parents, e0 l6 ?) q6 W4 `. M, o0 i* _
to absorb the full benefit of the program.* s$ J9 y9 a+ a
Alberta residents, who have a baby born on January 1, 2005, or after, will be
7 N0 Y: P' U: U! aeligible for a $500.00 grant toward the baby’s established RESP. The grant will# E: u% _- R/ M& \1 e
only be awarded if a RESP is established within the first year of the baby’s birth6 E; }4 F" t/ A T2 W1 z& [
(though Alberta Learning is looking to extend this deadline to two years or, albeit
; I+ ?% Z h+ Ounlikely, extending the deadline until the baby has reached their first year of7 E0 ]. F5 k( Q2 Z7 e" d
schooling). Should a year elapse and the parents do not arrange an RESP account,
7 g9 |5 _# b; Y$ efor the baby, then the baby will not receive the $500.00 grant, period. Subsequent
+ B* }' p; [, o$ f! n: R* Z% G; r$100.00 grants are awarded when the child reaches grades 3, 6 and 9. Each of) a9 B1 B1 V! g5 Z
those grants will require parents to provide matching dollars to qualify. These# z" |" d0 q- u& J% s. C& s
grants are awarded with the same limitations and restrictions as the initial $500.00 H# f/ G. f, i. {& f0 c
grant. Potentially, an RESP could receive up to $800.00 in Provincial grant money. |
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