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Thanks, here are details.
Canada Learning Bond
4 d8 W& ?5 I$ @" ~) K% nThe Federal Government, in the 2004 Budget, introduced the Canada Learning. w/ F7 h! u- _ j9 {. B
Bond. The Bond is aimed at helping low-income families save for their children’s
; G/ x$ z7 w0 K e- _9 Ppost-secondary education pursuits. Beginning in 2004, each child born to lowincome1 O1 D: i8 W2 g2 {
families, those earning $35,000 or less and who are also entitled to receive# E3 S7 o& _/ M/ q. P( I
the National Child Benefit, will receive a $500 Canada Learning Bond.7 ~8 k% @2 G2 i7 i0 \9 z* ]
Assuming a child remains qualified for the Canada Learning Bond, the child will$ V% Y g' a( b; `
continue to receive $100.00 in each subsequent year in Canada Learning Bond4 x: m6 o8 X$ r' n
installments. The Federal Government projects that the Canada Learning Bond will
8 Q1 S& x. b8 w: d. U+ vcarry a cost of up to $85 million this year and up to 120,000 children will benefit( l1 Z7 j% O o4 Z1 f
from the program2. The government says a child living in a low-income household
2 u+ X$ Z% I4 d( Y `could receive up to $2,000 for their education.
% A. r% Z# L( S1 c9 ?Additionally, in terms of post-secondary education and low-income families, the
9 C- f5 D, t4 J( [, Ogovernment has introduced a new one-time grant of up to $3,000 for first-year, _; z% Q, C5 _0 d
students whose family income hovers around $35,000 or less a year.2 q/ d x7 f7 M1 A! K4 E
Alberta Centennial Education Savings Plan Act0 E& L: G1 ^7 q, `2 V
During the 2004 Spring Sitting, the Alberta Government introduced and
( }- ~9 N/ h+ ?6 W1 f; l. z8 fsubsequently passed the Alberta Centennial Education Savings Plan Act. The
) r6 w+ `! m# r9 }5 K5 gprogram created by the Act is available only to residents of Alberta who have# ?9 b S: S' \2 f. ]) p
children born after January 1, 2005 (Alberta’s Centennial). The program, at first- V5 q, A, q9 a" @
glance, seems quite simple in scope but it does have many intricate details that," u+ b$ ^7 Q- Q$ r: {
once communicated, reveal a complicated program that relies on proactive parents6 H; D7 o8 Q! g% Y" A" T5 W- G
to absorb the full benefit of the program.4 b, n$ n1 d/ @
Alberta residents, who have a baby born on January 1, 2005, or after, will be9 L8 S. |, D; e" _9 w
eligible for a $500.00 grant toward the baby’s established RESP. The grant will d! w8 x% y& v# ^8 }1 g
only be awarded if a RESP is established within the first year of the baby’s birth5 Y% V* r( L2 D4 |4 @
(though Alberta Learning is looking to extend this deadline to two years or, albeit
! c1 Z4 [2 {7 \/ Hunlikely, extending the deadline until the baby has reached their first year of
4 I6 N- a& r* H! o( E* t" cschooling). Should a year elapse and the parents do not arrange an RESP account,* P" i \, ^5 i& M4 _% `$ o; ]
for the baby, then the baby will not receive the $500.00 grant, period. Subsequent1 k0 M! M$ H* y" f
$100.00 grants are awarded when the child reaches grades 3, 6 and 9. Each of1 n, T/ x$ I- Y: [
those grants will require parents to provide matching dollars to qualify. These$ t8 Y4 ?5 a0 j& I1 }/ S& I/ h6 F) c
grants are awarded with the same limitations and restrictions as the initial $500.00* ^; z j1 a6 K/ F4 w# h' }* Q
grant. Potentially, an RESP could receive up to $800.00 in Provincial grant money. |
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