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Thanks, here are details.
Canada Learning Bond
5 l+ y q2 l) u, _0 y, c9 pThe Federal Government, in the 2004 Budget, introduced the Canada Learning
; W8 ~. \* q. R' F/ Q( n2 dBond. The Bond is aimed at helping low-income families save for their children’s5 f- F, H! r s- G" W% E
post-secondary education pursuits. Beginning in 2004, each child born to lowincome+ z% W+ P. @5 p( `5 V: @
families, those earning $35,000 or less and who are also entitled to receive; ^2 N8 t! z" g, }
the National Child Benefit, will receive a $500 Canada Learning Bond.: h3 [1 }; F& w5 _0 v. j8 x9 y, X
Assuming a child remains qualified for the Canada Learning Bond, the child will; m- V2 G) z# z4 q
continue to receive $100.00 in each subsequent year in Canada Learning Bond; t+ o9 F% {8 ]7 r
installments. The Federal Government projects that the Canada Learning Bond will
, w* G* Q- y% Y" G9 Tcarry a cost of up to $85 million this year and up to 120,000 children will benefit# s4 q$ z x s7 w" H# g
from the program2. The government says a child living in a low-income household
" O5 J! R) F1 ?% y2 Z7 kcould receive up to $2,000 for their education.
. U! [8 ?. H3 ZAdditionally, in terms of post-secondary education and low-income families, the
( k# a/ B" y7 s6 {3 pgovernment has introduced a new one-time grant of up to $3,000 for first-year
( m, Z; w7 a' D' w( S gstudents whose family income hovers around $35,000 or less a year.
. ]' j' q1 p# N. E7 M' g- |, `+ XAlberta Centennial Education Savings Plan Act+ E" C# o- r, D2 s M, ^6 W
During the 2004 Spring Sitting, the Alberta Government introduced and
4 b0 M, S+ p/ A; U& U2 C# ?' Xsubsequently passed the Alberta Centennial Education Savings Plan Act. The
7 F/ [ u' `. D1 E- lprogram created by the Act is available only to residents of Alberta who have
8 P" B# X) o! Pchildren born after January 1, 2005 (Alberta’s Centennial). The program, at first
! y$ ]: v' h& fglance, seems quite simple in scope but it does have many intricate details that,
4 R6 f' C' |+ [7 ?2 M2 H Xonce communicated, reveal a complicated program that relies on proactive parents; V! U8 x/ C1 y$ A( Y/ l: o. d
to absorb the full benefit of the program.
9 U2 A5 a: c; `Alberta residents, who have a baby born on January 1, 2005, or after, will be, u7 O8 P8 E; m7 Y0 s |
eligible for a $500.00 grant toward the baby’s established RESP. The grant will
; | `* ~3 c3 O2 A$ J0 F' xonly be awarded if a RESP is established within the first year of the baby’s birth6 b6 g- y; q' |# ^2 A8 k, z6 \3 `* `
(though Alberta Learning is looking to extend this deadline to two years or, albeit
# [0 J8 u+ X- i& {% g4 Tunlikely, extending the deadline until the baby has reached their first year of" v. x; d8 g# z% k& l
schooling). Should a year elapse and the parents do not arrange an RESP account,
7 w v7 o. ~7 A: g4 u% ~for the baby, then the baby will not receive the $500.00 grant, period. Subsequent
7 `4 L6 W+ y6 w, p/ m2 w) e3 e$100.00 grants are awarded when the child reaches grades 3, 6 and 9. Each of6 q4 k+ h, a- T* g
those grants will require parents to provide matching dollars to qualify. These6 R* |7 S7 r$ b/ w* u
grants are awarded with the same limitations and restrictions as the initial $500.009 i. b) a5 A( D) D
grant. Potentially, an RESP could receive up to $800.00 in Provincial grant money. |
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