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Thanks, here are details.
Canada Learning Bond
. @( S4 p( y6 H+ hThe Federal Government, in the 2004 Budget, introduced the Canada Learning' g3 c8 ]: s/ x& u
Bond. The Bond is aimed at helping low-income families save for their children’s
$ T# J5 @$ ?' g ]post-secondary education pursuits. Beginning in 2004, each child born to lowincome
/ U+ i$ ~7 S3 A' afamilies, those earning $35,000 or less and who are also entitled to receive
8 Y9 N/ U& v( W/ n# qthe National Child Benefit, will receive a $500 Canada Learning Bond.5 X/ c! b8 y% w" p
Assuming a child remains qualified for the Canada Learning Bond, the child will
( Z N4 o y1 s8 j6 U" Jcontinue to receive $100.00 in each subsequent year in Canada Learning Bond
3 z# r# N! d9 v3 I% l) q( O, B5 Yinstallments. The Federal Government projects that the Canada Learning Bond will T" v9 W- b! Z: e0 x5 E
carry a cost of up to $85 million this year and up to 120,000 children will benefit- i) g* B7 y; L+ f. r# D! p
from the program2. The government says a child living in a low-income household
% R( O% V$ {5 J* e4 B6 s, ?( ~could receive up to $2,000 for their education.
( d7 o4 T2 q* ~0 l7 s, l6 {. m o: F6 ?Additionally, in terms of post-secondary education and low-income families, the
7 i5 e7 C6 r+ cgovernment has introduced a new one-time grant of up to $3,000 for first-year g: e/ a5 d9 d* o
students whose family income hovers around $35,000 or less a year.
& E& V5 g, i" P ]% D% }+ |Alberta Centennial Education Savings Plan Act
! i+ ?* l, i5 r: a& y3 \During the 2004 Spring Sitting, the Alberta Government introduced and. E$ v; _3 [1 M' w$ H* h
subsequently passed the Alberta Centennial Education Savings Plan Act. The
5 Q+ f5 L1 L P$ E9 Z% |program created by the Act is available only to residents of Alberta who have" y. E' q, x8 X. U7 A
children born after January 1, 2005 (Alberta’s Centennial). The program, at first7 ]9 b% ]7 R6 n9 C
glance, seems quite simple in scope but it does have many intricate details that,
" w# n' z9 t& N& ~" `! ?once communicated, reveal a complicated program that relies on proactive parents
5 v( M8 z4 Y) P, rto absorb the full benefit of the program.
3 Y: `' F2 l; s" J+ ?* ]# N+ cAlberta residents, who have a baby born on January 1, 2005, or after, will be
3 x, C; o( U9 b4 [ C }$ ~1 jeligible for a $500.00 grant toward the baby’s established RESP. The grant will
9 X# _3 ?+ q- e$ ^% T; Gonly be awarded if a RESP is established within the first year of the baby’s birth5 C* d6 K3 b5 J1 k+ `
(though Alberta Learning is looking to extend this deadline to two years or, albeit5 T# x& q1 w+ x' e9 ~
unlikely, extending the deadline until the baby has reached their first year of
7 U$ v& R9 h2 M6 k r2 `schooling). Should a year elapse and the parents do not arrange an RESP account,
: _3 u6 z" T3 _, P c$ |* Afor the baby, then the baby will not receive the $500.00 grant, period. Subsequent
S& T. s Y: K: Z" e( Y8 {$100.00 grants are awarded when the child reaches grades 3, 6 and 9. Each of
$ M2 Y* O% Y& n2 X. J- e& M- ~! nthose grants will require parents to provide matching dollars to qualify. These
! G* G2 y# A' O4 G* Pgrants are awarded with the same limitations and restrictions as the initial $500.006 ]- x: h1 x2 u/ `& b
grant. Potentially, an RESP could receive up to $800.00 in Provincial grant money. |
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