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Thanks, here are details.
Canada Learning Bond
( D* ?0 f1 c P( \! EThe Federal Government, in the 2004 Budget, introduced the Canada Learning. p9 T/ F. v" h
Bond. The Bond is aimed at helping low-income families save for their children’s
. j8 n& v5 T- [) A2 ]& lpost-secondary education pursuits. Beginning in 2004, each child born to lowincome
- V( P# }, |& m7 C5 Zfamilies, those earning $35,000 or less and who are also entitled to receive C/ T7 G7 ?6 @
the National Child Benefit, will receive a $500 Canada Learning Bond.
0 h+ l% N, \' ZAssuming a child remains qualified for the Canada Learning Bond, the child will
& D6 O( z7 O B4 p4 @$ I: K: ocontinue to receive $100.00 in each subsequent year in Canada Learning Bond& t. J0 E u8 G; |$ E
installments. The Federal Government projects that the Canada Learning Bond will
# H1 [8 f8 F# Z( P: L6 t3 xcarry a cost of up to $85 million this year and up to 120,000 children will benefit! l) \% r4 e L( V% i/ T: D
from the program2. The government says a child living in a low-income household
$ e1 ? x( p" J3 a4 Dcould receive up to $2,000 for their education.( z& z, N# \/ f4 n& h8 H
Additionally, in terms of post-secondary education and low-income families, the
2 F3 Z' v$ R% C( u* Z' B+ ggovernment has introduced a new one-time grant of up to $3,000 for first-year
8 V2 l0 h, Z* J. J& Mstudents whose family income hovers around $35,000 or less a year.6 J4 I2 @3 U% k# X: e
Alberta Centennial Education Savings Plan Act3 S3 l# p9 A8 [9 o# u
During the 2004 Spring Sitting, the Alberta Government introduced and
( n/ ^) z& X! _* r1 ^subsequently passed the Alberta Centennial Education Savings Plan Act. The
& D; o2 T# [0 h' q8 J+ }5 N F. Xprogram created by the Act is available only to residents of Alberta who have
4 |6 } t) {2 i5 Y6 ?. ?children born after January 1, 2005 (Alberta’s Centennial). The program, at first! {* n+ f! O! ^6 t3 h5 t
glance, seems quite simple in scope but it does have many intricate details that,
2 i) W& d! q, o6 ~; {( b% w- h( xonce communicated, reveal a complicated program that relies on proactive parents) N1 k# d/ c0 d
to absorb the full benefit of the program.
3 r8 h/ H' B6 s: \" Q- G9 jAlberta residents, who have a baby born on January 1, 2005, or after, will be
" V1 I6 N5 [+ K8 p3 Z6 Oeligible for a $500.00 grant toward the baby’s established RESP. The grant will
; z! Z x# ^( ]5 }, Gonly be awarded if a RESP is established within the first year of the baby’s birth! l, p2 @. V' ~+ X \! ~# i( O
(though Alberta Learning is looking to extend this deadline to two years or, albeit* Q# k/ ?6 t+ C
unlikely, extending the deadline until the baby has reached their first year of
* V8 l$ i: w( K' g" |/ [schooling). Should a year elapse and the parents do not arrange an RESP account,
$ Z2 W/ C; p2 T) Sfor the baby, then the baby will not receive the $500.00 grant, period. Subsequent. r. E( A* ]7 E2 x- F' v# P
$100.00 grants are awarded when the child reaches grades 3, 6 and 9. Each of
7 v3 K: _& t; V% fthose grants will require parents to provide matching dollars to qualify. These* x \. t: }$ l
grants are awarded with the same limitations and restrictions as the initial $500.00
& ~# F8 i4 t% L9 ugrant. Potentially, an RESP could receive up to $800.00 in Provincial grant money. |
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