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Thanks, here are details.
Canada Learning Bond, z& K# x8 g0 x/ a# ]
The Federal Government, in the 2004 Budget, introduced the Canada Learning% J) \4 p& v7 u, G) \, j9 W( e
Bond. The Bond is aimed at helping low-income families save for their children’s
|( [7 o, k! B$ n( C+ A6 k; j0 n0 Zpost-secondary education pursuits. Beginning in 2004, each child born to lowincome, O2 I0 p/ ?% Y3 U- S* r- C
families, those earning $35,000 or less and who are also entitled to receive4 B6 l6 m* V$ X4 g& \
the National Child Benefit, will receive a $500 Canada Learning Bond.7 M5 h) H, t; f) A
Assuming a child remains qualified for the Canada Learning Bond, the child will
6 n- p. K" Y# e/ }continue to receive $100.00 in each subsequent year in Canada Learning Bond; E. k1 m& Z; o1 {
installments. The Federal Government projects that the Canada Learning Bond will" ?4 ]4 O! @5 m, S
carry a cost of up to $85 million this year and up to 120,000 children will benefit( e A' q: X0 c1 i0 X6 ]- _" H
from the program2. The government says a child living in a low-income household
- [1 \1 x$ |% z! @could receive up to $2,000 for their education.
$ h3 Q5 t% b& N8 M; M C" @Additionally, in terms of post-secondary education and low-income families, the
7 n) c7 M! H( T# s6 E; mgovernment has introduced a new one-time grant of up to $3,000 for first-year8 I) G8 G+ k# V( F
students whose family income hovers around $35,000 or less a year.0 f3 L( ^+ P* R! n# B/ Q+ v8 H
Alberta Centennial Education Savings Plan Act
9 l5 \9 g0 G! ]' p1 I! _During the 2004 Spring Sitting, the Alberta Government introduced and; S$ I+ h3 @0 g. t* X
subsequently passed the Alberta Centennial Education Savings Plan Act. The1 w' _: e* ?: I7 ?9 {' i
program created by the Act is available only to residents of Alberta who have1 W& E8 Y& y2 \, D% ` [
children born after January 1, 2005 (Alberta’s Centennial). The program, at first
# V3 x2 N; w+ |: W ^% i% W3 wglance, seems quite simple in scope but it does have many intricate details that,
# j* F! Z9 e$ U9 Ionce communicated, reveal a complicated program that relies on proactive parents2 r: A' S' m" s- f
to absorb the full benefit of the program." ~+ y5 [ i/ t* L- U
Alberta residents, who have a baby born on January 1, 2005, or after, will be- N3 i( y n- `- \/ v0 q
eligible for a $500.00 grant toward the baby’s established RESP. The grant will- q* X' f% Z/ V1 B3 O
only be awarded if a RESP is established within the first year of the baby’s birth4 }6 ^! I. y. X. q: [& h/ C
(though Alberta Learning is looking to extend this deadline to two years or, albeit: j% w3 ^- x' h. f) ~! f! l# G
unlikely, extending the deadline until the baby has reached their first year of
+ s' M+ G$ Q5 R* e8 u. @schooling). Should a year elapse and the parents do not arrange an RESP account," F: V* ^: k4 h+ H$ g1 |- ]6 a* r4 m/ d
for the baby, then the baby will not receive the $500.00 grant, period. Subsequent
! |! m9 r9 C I$100.00 grants are awarded when the child reaches grades 3, 6 and 9. Each of, z7 m; I0 c. v
those grants will require parents to provide matching dollars to qualify. These
8 y% n: `* U4 ?" w9 o: ggrants are awarded with the same limitations and restrictions as the initial $500.00
$ o+ L! h8 F; }" Q! r ]( M- h5 Bgrant. Potentially, an RESP could receive up to $800.00 in Provincial grant money. |
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