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Thanks, here are details.
Canada Learning Bond$ c/ I+ {6 T4 I- L+ E
The Federal Government, in the 2004 Budget, introduced the Canada Learning
. S9 b, A6 A& b# b- IBond. The Bond is aimed at helping low-income families save for their children’s
# f/ x, l/ G9 k3 Y$ }% f2 J9 opost-secondary education pursuits. Beginning in 2004, each child born to lowincome" h5 Q0 e7 M! ~
families, those earning $35,000 or less and who are also entitled to receive
6 M: F. A0 z9 H \$ jthe National Child Benefit, will receive a $500 Canada Learning Bond.0 r7 }2 C7 [" a9 Q4 o0 Y0 V2 W# l @
Assuming a child remains qualified for the Canada Learning Bond, the child will
1 ]2 m/ Q) _7 e% F6 s) icontinue to receive $100.00 in each subsequent year in Canada Learning Bond5 r* i3 N+ Q [$ X
installments. The Federal Government projects that the Canada Learning Bond will. u' [ l" K9 G4 k: U& E6 L
carry a cost of up to $85 million this year and up to 120,000 children will benefit
/ u0 L+ a, |8 D5 j' @from the program2. The government says a child living in a low-income household
K. X* X7 \& t, zcould receive up to $2,000 for their education.9 J2 ~1 P( b# ]/ `! {. {3 I; P
Additionally, in terms of post-secondary education and low-income families, the
+ z+ d6 u1 `- ?; ^7 @government has introduced a new one-time grant of up to $3,000 for first-year$ p5 M8 p2 z) Y8 T4 c
students whose family income hovers around $35,000 or less a year.
% N( p' k% m, b: E. `2 _Alberta Centennial Education Savings Plan Act* `! T6 [' W; P3 w" ^
During the 2004 Spring Sitting, the Alberta Government introduced and v) [) k% G+ s1 H5 ^
subsequently passed the Alberta Centennial Education Savings Plan Act. The
8 M/ I/ D4 D( n2 E T' G0 `$ a" \program created by the Act is available only to residents of Alberta who have
; X! E- {- [: w: _# Wchildren born after January 1, 2005 (Alberta’s Centennial). The program, at first$ ^/ s7 t% r, p3 e+ O/ w0 V I; t/ N
glance, seems quite simple in scope but it does have many intricate details that,
- D( o. J# C+ B/ l! conce communicated, reveal a complicated program that relies on proactive parents. [% d% E& G8 C! T
to absorb the full benefit of the program.! o4 \, s: `) n% H n: a
Alberta residents, who have a baby born on January 1, 2005, or after, will be
9 L$ X e. D4 t8 g \9 |eligible for a $500.00 grant toward the baby’s established RESP. The grant will7 i& r+ k$ K" h5 j
only be awarded if a RESP is established within the first year of the baby’s birth8 y' Q1 R( [3 E* I C: L
(though Alberta Learning is looking to extend this deadline to two years or, albeit
) t2 e8 {+ }- \% z8 xunlikely, extending the deadline until the baby has reached their first year of9 t! H. I1 J7 ^
schooling). Should a year elapse and the parents do not arrange an RESP account,
) c1 f* e/ D- E4 ofor the baby, then the baby will not receive the $500.00 grant, period. Subsequent+ q; S4 d0 U( Y* S) r5 t1 F
$100.00 grants are awarded when the child reaches grades 3, 6 and 9. Each of
- |" p0 }; g0 y0 |those grants will require parents to provide matching dollars to qualify. These
' `6 n$ U/ }3 pgrants are awarded with the same limitations and restrictions as the initial $500.00
- d! i) i7 M- I( ^$ M! H' W$ g( r* `grant. Potentially, an RESP could receive up to $800.00 in Provincial grant money. |
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