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Thanks, here are details.
Canada Learning Bond
$ v( O2 s. S* J zThe Federal Government, in the 2004 Budget, introduced the Canada Learning# G. a) t, s: T! m4 n0 x4 k) \
Bond. The Bond is aimed at helping low-income families save for their children’s
/ _* |8 k, Z8 }0 Z Gpost-secondary education pursuits. Beginning in 2004, each child born to lowincome# E# P. c9 W4 B5 C! |$ z7 ^6 C
families, those earning $35,000 or less and who are also entitled to receive' g4 P5 ?" A2 x* S7 L
the National Child Benefit, will receive a $500 Canada Learning Bond.* Q3 w ~5 B3 L5 k% d
Assuming a child remains qualified for the Canada Learning Bond, the child will1 ^% g/ ?( E9 n* t
continue to receive $100.00 in each subsequent year in Canada Learning Bond
- z; O2 T% k1 Q5 E1 h, ainstallments. The Federal Government projects that the Canada Learning Bond will/ Y' E! w* i% J& ?# j
carry a cost of up to $85 million this year and up to 120,000 children will benefit
+ T( g6 n0 X2 X3 s( o C" Mfrom the program2. The government says a child living in a low-income household
. \# e* V6 B3 f* B8 @& vcould receive up to $2,000 for their education.
/ N, l1 z* e7 m% p- nAdditionally, in terms of post-secondary education and low-income families, the- n+ ^4 O7 c3 S8 K
government has introduced a new one-time grant of up to $3,000 for first-year
3 y4 \, }$ O O; }' Z& i# _. {/ ~students whose family income hovers around $35,000 or less a year.
& G/ K3 s: x5 }" m. J+ EAlberta Centennial Education Savings Plan Act
# D. d0 H* i' A( w: ODuring the 2004 Spring Sitting, the Alberta Government introduced and7 ]* y- O+ o1 e" @* R2 k
subsequently passed the Alberta Centennial Education Savings Plan Act. The- H! X6 k6 c2 F8 j# w
program created by the Act is available only to residents of Alberta who have
1 i& \5 |2 R1 b; H5 Pchildren born after January 1, 2005 (Alberta’s Centennial). The program, at first, K9 m! w Q9 q2 F* k* _; D2 i
glance, seems quite simple in scope but it does have many intricate details that,0 O4 J4 C. _: F! z0 W2 J! k0 V
once communicated, reveal a complicated program that relies on proactive parents
8 z3 j, W% I% h8 K `% b4 s0 T7 r$ j! Ato absorb the full benefit of the program., ]3 m) r( z" z: k: U _
Alberta residents, who have a baby born on January 1, 2005, or after, will be
1 N9 R2 ~! m: w5 jeligible for a $500.00 grant toward the baby’s established RESP. The grant will
; q1 V( \6 j3 q2 U; j$ o! Wonly be awarded if a RESP is established within the first year of the baby’s birth
* n* z8 e8 t8 ?% Z: K(though Alberta Learning is looking to extend this deadline to two years or, albeit1 v3 _. i5 C* l G8 y5 w
unlikely, extending the deadline until the baby has reached their first year of: D& h6 z/ Z5 ^
schooling). Should a year elapse and the parents do not arrange an RESP account,
6 E, u2 {. f4 I* Efor the baby, then the baby will not receive the $500.00 grant, period. Subsequent4 |/ W% x, X, `+ E
$100.00 grants are awarded when the child reaches grades 3, 6 and 9. Each of/ |- Z+ }# G: X4 W% X
those grants will require parents to provide matching dollars to qualify. These' N# _; I) }) J7 F5 M% a
grants are awarded with the same limitations and restrictions as the initial $500.00/ R, L2 b& y: p w
grant. Potentially, an RESP could receive up to $800.00 in Provincial grant money. |
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