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Thanks, here are details.
Canada Learning Bond, h* F- o9 H! e" {. I
The Federal Government, in the 2004 Budget, introduced the Canada Learning
2 I5 A: y7 l" ~! h" P8 SBond. The Bond is aimed at helping low-income families save for their children’s
# G! V4 ~0 k6 y! Y, c+ mpost-secondary education pursuits. Beginning in 2004, each child born to lowincome7 c7 T+ Y( w/ J9 v: p7 S
families, those earning $35,000 or less and who are also entitled to receive
; p* C0 x6 r9 p% [) Y4 Z vthe National Child Benefit, will receive a $500 Canada Learning Bond.
( J7 X' H8 E# q' G& L: \2 HAssuming a child remains qualified for the Canada Learning Bond, the child will- H1 E' j V/ }3 f6 z, {
continue to receive $100.00 in each subsequent year in Canada Learning Bond$ \+ I. h& d8 |# k6 |# k Z) e
installments. The Federal Government projects that the Canada Learning Bond will
7 ?7 n; D% [3 dcarry a cost of up to $85 million this year and up to 120,000 children will benefit* C7 ^5 B7 i- d) S b0 d$ s
from the program2. The government says a child living in a low-income household( Z6 r C! {* ~* r7 {# w
could receive up to $2,000 for their education.
5 A( i q ]' v/ jAdditionally, in terms of post-secondary education and low-income families, the* i. }% m; ? d/ P% O
government has introduced a new one-time grant of up to $3,000 for first-year
( G9 K7 _; G6 l; J4 ? F; {) wstudents whose family income hovers around $35,000 or less a year.6 f- s6 l% T. I( c" i0 ~( {
Alberta Centennial Education Savings Plan Act4 P6 }: r- m' R4 y( ?0 j/ @. V3 d
During the 2004 Spring Sitting, the Alberta Government introduced and- B8 R& _7 c$ e K% R
subsequently passed the Alberta Centennial Education Savings Plan Act. The2 J2 ?% T. x9 g0 y+ }% f
program created by the Act is available only to residents of Alberta who have; t' k U" h/ j* `( C- V
children born after January 1, 2005 (Alberta’s Centennial). The program, at first
+ G+ g4 F- A7 b7 \glance, seems quite simple in scope but it does have many intricate details that,
) \- V" _( l- B# sonce communicated, reveal a complicated program that relies on proactive parents
% n3 S6 S$ \/ {# N' `2 bto absorb the full benefit of the program.+ _( ^- s; G. F7 `: o
Alberta residents, who have a baby born on January 1, 2005, or after, will be
2 `; S W' S1 [+ p, feligible for a $500.00 grant toward the baby’s established RESP. The grant will
/ z7 @, u' l+ [# _/ Z8 d5 Nonly be awarded if a RESP is established within the first year of the baby’s birth8 t+ O& p; J% t* A9 t+ }; i0 |
(though Alberta Learning is looking to extend this deadline to two years or, albeit
4 E- d5 i0 Q% ] L' z& y3 G5 Aunlikely, extending the deadline until the baby has reached their first year of
' ~8 V2 l! I- l' W- h F6 \schooling). Should a year elapse and the parents do not arrange an RESP account,4 l; N) Z& u* R$ B
for the baby, then the baby will not receive the $500.00 grant, period. Subsequent
A8 f3 A% n$ E0 |: S- Z9 {$100.00 grants are awarded when the child reaches grades 3, 6 and 9. Each of
' R# } R- s$ T5 G7 u$ T: wthose grants will require parents to provide matching dollars to qualify. These
/ h, M1 ^5 ]. {) U/ t8 y: y8 ^grants are awarded with the same limitations and restrictions as the initial $500.00
5 \% [9 A% }8 a4 V& L- k& tgrant. Potentially, an RESP could receive up to $800.00 in Provincial grant money. |
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