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Thanks, here are details.
Canada Learning Bond
! k1 C8 O- L& [' e5 GThe Federal Government, in the 2004 Budget, introduced the Canada Learning5 r3 W& I( d F" b6 V
Bond. The Bond is aimed at helping low-income families save for their children’s
7 i3 O! W1 @2 j) I6 ?- n3 d6 g5 Xpost-secondary education pursuits. Beginning in 2004, each child born to lowincome
# t8 v2 d' K: A' l9 M5 V* h, Ifamilies, those earning $35,000 or less and who are also entitled to receive
/ b! U( T: A# {4 G4 E& fthe National Child Benefit, will receive a $500 Canada Learning Bond.
6 g- U P9 w' Q- T" Q/ cAssuming a child remains qualified for the Canada Learning Bond, the child will
; o" v7 a( o* L D2 m/ J6 {continue to receive $100.00 in each subsequent year in Canada Learning Bond# i' C9 b0 a& L' V5 e1 n* g0 \5 J
installments. The Federal Government projects that the Canada Learning Bond will
% x) o! t3 l1 y) z7 l& x/ rcarry a cost of up to $85 million this year and up to 120,000 children will benefit7 m# a/ G ?$ i. f T0 e5 T9 S
from the program2. The government says a child living in a low-income household
4 H W( H1 x/ p/ n; D! E/ tcould receive up to $2,000 for their education.
S' X- L/ O& ?; ?" c# I+ j0 tAdditionally, in terms of post-secondary education and low-income families, the; I$ S& p0 y% C# ^0 \
government has introduced a new one-time grant of up to $3,000 for first-year2 _( x5 X |$ U% e+ u: g0 G9 s; P% Q
students whose family income hovers around $35,000 or less a year.! R- j( w3 ~1 u4 z- T" N: o, M6 k
Alberta Centennial Education Savings Plan Act4 l! q! ~; n8 F P- ^! K" d3 J
During the 2004 Spring Sitting, the Alberta Government introduced and" u" Z3 }" B0 |3 a! Q7 g$ b! A/ w
subsequently passed the Alberta Centennial Education Savings Plan Act. The% ~( i% j% n+ v4 j
program created by the Act is available only to residents of Alberta who have4 Y8 ]2 u: G0 Y2 ~+ |( r
children born after January 1, 2005 (Alberta’s Centennial). The program, at first" X) u0 j4 C6 q! ]" r( {8 q" ?
glance, seems quite simple in scope but it does have many intricate details that,
8 s# v0 o; N4 V, p( ^: I7 `once communicated, reveal a complicated program that relies on proactive parents
" s4 b) {- _* I+ m! _to absorb the full benefit of the program.
' O/ l; O3 L* O+ @Alberta residents, who have a baby born on January 1, 2005, or after, will be
! T9 l* W# [- u4 ^eligible for a $500.00 grant toward the baby’s established RESP. The grant will
, m2 m/ w" m5 P0 ^4 i. V }2 @only be awarded if a RESP is established within the first year of the baby’s birth
1 L( k" ^. V2 O* Z( M. Y(though Alberta Learning is looking to extend this deadline to two years or, albeit
6 M" f% E7 I) g5 N: Q8 Q& [1 Munlikely, extending the deadline until the baby has reached their first year of
4 N, [: z9 s; p( Cschooling). Should a year elapse and the parents do not arrange an RESP account,
! r& I" b a* m- {" a: M/ Ofor the baby, then the baby will not receive the $500.00 grant, period. Subsequent
$ x% Q* k* X& R. b. [5 Z' Y$100.00 grants are awarded when the child reaches grades 3, 6 and 9. Each of1 [% J/ I( S& V
those grants will require parents to provide matching dollars to qualify. These
* }% J2 ?8 l$ cgrants are awarded with the same limitations and restrictions as the initial $500.00
! L# A% o$ l$ Ugrant. Potentially, an RESP could receive up to $800.00 in Provincial grant money. |
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