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Thanks, here are details.
Canada Learning Bond
/ `' ]" P$ Y! F BThe Federal Government, in the 2004 Budget, introduced the Canada Learning
3 o; n3 o0 s" A4 R, s0 oBond. The Bond is aimed at helping low-income families save for their children’s
. ^( z/ n: e( Q+ d; ~6 E# k3 ~post-secondary education pursuits. Beginning in 2004, each child born to lowincome
4 w/ Z2 {1 T- ]- d' r2 X7 P+ c# Dfamilies, those earning $35,000 or less and who are also entitled to receive k3 g$ Q6 l+ g# n
the National Child Benefit, will receive a $500 Canada Learning Bond.
4 b$ W4 E' ?! P% s& B; C/ WAssuming a child remains qualified for the Canada Learning Bond, the child will& V Y- p# T+ F$ X$ v- A
continue to receive $100.00 in each subsequent year in Canada Learning Bond$ f0 h6 R o# l' u4 @8 G
installments. The Federal Government projects that the Canada Learning Bond will0 j$ I3 ?+ H: m* ~( ^
carry a cost of up to $85 million this year and up to 120,000 children will benefit5 P5 B+ K$ j7 ]) w! R; _
from the program2. The government says a child living in a low-income household$ k. u6 F# F% Z& |$ p
could receive up to $2,000 for their education.
7 O) o4 `4 p# K. xAdditionally, in terms of post-secondary education and low-income families, the6 X2 w+ K' [1 {# h
government has introduced a new one-time grant of up to $3,000 for first-year+ |+ T% L1 i( o9 m
students whose family income hovers around $35,000 or less a year.# D+ @! i. @9 P# m
Alberta Centennial Education Savings Plan Act
5 j3 a* z+ q5 b5 \During the 2004 Spring Sitting, the Alberta Government introduced and" F9 T% k, c X1 H6 G) @6 H, E! W
subsequently passed the Alberta Centennial Education Savings Plan Act. The( q0 K* |- y0 P: ^
program created by the Act is available only to residents of Alberta who have% D* }$ t1 C/ ^; H8 A3 x) k
children born after January 1, 2005 (Alberta’s Centennial). The program, at first2 p& ?7 I# v) Z* o1 B1 Q6 H
glance, seems quite simple in scope but it does have many intricate details that,
7 v# Z- P, {+ r1 N1 r3 j2 b, Gonce communicated, reveal a complicated program that relies on proactive parents6 T( V) n A) \3 O+ v8 A
to absorb the full benefit of the program. [8 R1 S/ @! | u) g1 |
Alberta residents, who have a baby born on January 1, 2005, or after, will be# P+ I5 J4 t* W/ u
eligible for a $500.00 grant toward the baby’s established RESP. The grant will
9 X' v3 J0 q8 d: t9 `1 B# uonly be awarded if a RESP is established within the first year of the baby’s birth4 N+ }& N- Y# _
(though Alberta Learning is looking to extend this deadline to two years or, albeit
9 l! d7 J+ n7 f/ wunlikely, extending the deadline until the baby has reached their first year of/ E* _9 j) ~# s/ z
schooling). Should a year elapse and the parents do not arrange an RESP account,
) L7 Z- B0 u4 l0 {for the baby, then the baby will not receive the $500.00 grant, period. Subsequent
+ O: h& C! H# c# T. `1 q$100.00 grants are awarded when the child reaches grades 3, 6 and 9. Each of
; {! A" Y2 |( G" A2 n+ R/ V3 [8 d1 kthose grants will require parents to provide matching dollars to qualify. These, o) J" x! Z& W8 W3 R) E K
grants are awarded with the same limitations and restrictions as the initial $500.00% ~0 H4 Y# [7 g/ D2 Z$ W! j
grant. Potentially, an RESP could receive up to $800.00 in Provincial grant money. |
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