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Thanks, here are details.
Canada Learning Bond. m8 R4 P1 E# a& L5 d
The Federal Government, in the 2004 Budget, introduced the Canada Learning( x4 {! u+ U/ Y- S
Bond. The Bond is aimed at helping low-income families save for their children’s' v) p0 y4 p- a: R& E, K
post-secondary education pursuits. Beginning in 2004, each child born to lowincome
Z; F' O) k; Ufamilies, those earning $35,000 or less and who are also entitled to receive
& j8 x8 e! y! W6 A3 n$ ^the National Child Benefit, will receive a $500 Canada Learning Bond.
8 d3 d: m: \7 Y6 _ yAssuming a child remains qualified for the Canada Learning Bond, the child will
5 r6 h* F$ ~. l3 o4 t4 K2 _1 }continue to receive $100.00 in each subsequent year in Canada Learning Bond
/ B$ d# \, m; Y4 X' W9 G& e6 Kinstallments. The Federal Government projects that the Canada Learning Bond will/ F+ ?' b4 U6 A5 [2 f8 B; n
carry a cost of up to $85 million this year and up to 120,000 children will benefit2 M7 ~/ t& @5 y9 p
from the program2. The government says a child living in a low-income household# q. X; A) W/ q9 |
could receive up to $2,000 for their education.
: K; y2 D- g# ~' vAdditionally, in terms of post-secondary education and low-income families, the- c: B! O- q& {2 g0 V8 U) d
government has introduced a new one-time grant of up to $3,000 for first-year
, n& y2 {! M; nstudents whose family income hovers around $35,000 or less a year.
1 G J, y1 X g( g* B- }/ kAlberta Centennial Education Savings Plan Act$ j) Z# r- L& A7 n
During the 2004 Spring Sitting, the Alberta Government introduced and6 Q7 u m7 E& h V) W7 C: y
subsequently passed the Alberta Centennial Education Savings Plan Act. The% h S5 _0 J6 a1 J1 H) O
program created by the Act is available only to residents of Alberta who have
3 ^ m& z0 g& W7 N! `children born after January 1, 2005 (Alberta’s Centennial). The program, at first+ \. G) I% v, Z, n8 ^
glance, seems quite simple in scope but it does have many intricate details that,
. Z/ S2 v3 d P& ]- J% Ionce communicated, reveal a complicated program that relies on proactive parents
5 w/ m6 w# q9 s$ qto absorb the full benefit of the program.
7 q2 Q# `6 ]( V$ N& OAlberta residents, who have a baby born on January 1, 2005, or after, will be5 i7 d8 u% V$ M
eligible for a $500.00 grant toward the baby’s established RESP. The grant will0 ~5 D. k. l/ W- \7 [" a
only be awarded if a RESP is established within the first year of the baby’s birth9 H% `$ R0 v4 A. ^
(though Alberta Learning is looking to extend this deadline to two years or, albeit
- c* v( L4 D O% n0 f4 }6 ^% M8 G! lunlikely, extending the deadline until the baby has reached their first year of
/ J6 Q7 Q, L5 }schooling). Should a year elapse and the parents do not arrange an RESP account,
5 q1 N7 g5 ^3 n5 V/ L0 @7 H* ]for the baby, then the baby will not receive the $500.00 grant, period. Subsequent
! c( p# y% J( ^9 c! O. ~9 h$100.00 grants are awarded when the child reaches grades 3, 6 and 9. Each of6 r* W( p* g4 W, R; D% _$ A, e
those grants will require parents to provide matching dollars to qualify. These; U% D5 ~+ @6 q: }
grants are awarded with the same limitations and restrictions as the initial $500.00% i! w) l+ M$ P. O- ^6 O0 y; n7 v
grant. Potentially, an RESP could receive up to $800.00 in Provincial grant money. |
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