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Thanks, here are details.
Canada Learning Bond
) N( E) j/ ]! V8 BThe Federal Government, in the 2004 Budget, introduced the Canada Learning
" [) Z- S& N2 @, ~5 I: L4 t! TBond. The Bond is aimed at helping low-income families save for their children’s
- Y5 g' y% L# m8 `% J* j- bpost-secondary education pursuits. Beginning in 2004, each child born to lowincome
" a T) m8 E! c, [! A( tfamilies, those earning $35,000 or less and who are also entitled to receive1 c$ w( _- h5 F& K
the National Child Benefit, will receive a $500 Canada Learning Bond.9 H9 w+ n' Q% m; Q
Assuming a child remains qualified for the Canada Learning Bond, the child will
& \! F- J- Z6 kcontinue to receive $100.00 in each subsequent year in Canada Learning Bond
0 n! E) J- @) ninstallments. The Federal Government projects that the Canada Learning Bond will
% J! E* _9 D+ t& I8 p$ C5 p! ^carry a cost of up to $85 million this year and up to 120,000 children will benefit
; R: v7 I4 j+ D. ofrom the program2. The government says a child living in a low-income household
4 w7 y" @ K: D- mcould receive up to $2,000 for their education.. [- D1 T4 i9 Y- u8 C- m3 c
Additionally, in terms of post-secondary education and low-income families, the6 O* K; n/ r+ ? Z- {7 \
government has introduced a new one-time grant of up to $3,000 for first-year
2 E7 u( `. q$ b( ostudents whose family income hovers around $35,000 or less a year.6 o/ k3 h& z9 T Y" x0 v" i& c x
Alberta Centennial Education Savings Plan Act
% k1 U, f5 B, k% E$ nDuring the 2004 Spring Sitting, the Alberta Government introduced and- p+ u& Y# q& \; I
subsequently passed the Alberta Centennial Education Savings Plan Act. The/ ^# @1 { S. j5 t( ~+ c% |3 q( P
program created by the Act is available only to residents of Alberta who have5 ]) x6 k! U0 r6 k( R2 K
children born after January 1, 2005 (Alberta’s Centennial). The program, at first
- {+ F7 p$ ]; nglance, seems quite simple in scope but it does have many intricate details that,& b: i* M* H3 e( {* ^
once communicated, reveal a complicated program that relies on proactive parents
8 P# D( L+ ^% c ito absorb the full benefit of the program.' L9 S( l0 F. y) K( B; p% P
Alberta residents, who have a baby born on January 1, 2005, or after, will be. N* M @. P9 m& U Q( Z% u' h
eligible for a $500.00 grant toward the baby’s established RESP. The grant will
$ H0 r5 y9 [6 N7 w) D6 I6 Honly be awarded if a RESP is established within the first year of the baby’s birth! p0 `& P3 [ C% z
(though Alberta Learning is looking to extend this deadline to two years or, albeit1 I5 h: H; [& {- s# n( S: @9 T* c
unlikely, extending the deadline until the baby has reached their first year of
+ s7 y& V& m+ Q" g b7 }schooling). Should a year elapse and the parents do not arrange an RESP account,
! f& @4 y- \1 d L& Sfor the baby, then the baby will not receive the $500.00 grant, period. Subsequent
0 o( E, V& s) s3 ]/ z9 @: t$100.00 grants are awarded when the child reaches grades 3, 6 and 9. Each of1 _% X8 D; Y i2 {% ^# N0 m3 a
those grants will require parents to provide matching dollars to qualify. These* H. w9 W9 }. q/ h! j
grants are awarded with the same limitations and restrictions as the initial $500.00
' ]$ ~# Z5 X. }1 `" Q/ E( q1 ~grant. Potentially, an RESP could receive up to $800.00 in Provincial grant money. |
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