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Thanks, here are details.
Canada Learning Bond; j2 r& e3 L$ q* z/ k. p. g
The Federal Government, in the 2004 Budget, introduced the Canada Learning
7 h, M' _8 n% c* DBond. The Bond is aimed at helping low-income families save for their children’s$ U6 F: E# F) C( J* j7 r
post-secondary education pursuits. Beginning in 2004, each child born to lowincome; \5 u9 g X7 Q- M. a; v9 G
families, those earning $35,000 or less and who are also entitled to receive: m0 K# I* y% s5 [ t) p0 P: c
the National Child Benefit, will receive a $500 Canada Learning Bond.
' S h, R6 e+ `/ A6 l: m$ @) D6 iAssuming a child remains qualified for the Canada Learning Bond, the child will( l! l# T5 W* ]) Y
continue to receive $100.00 in each subsequent year in Canada Learning Bond
5 I9 W" b, p I/ I, J; Ginstallments. The Federal Government projects that the Canada Learning Bond will
/ y9 a5 F9 N) O) a6 X4 ecarry a cost of up to $85 million this year and up to 120,000 children will benefit
+ ^ v% U% B7 K( E9 j. Jfrom the program2. The government says a child living in a low-income household
# y# ~+ I3 u! O# T& P3 r, H+ [, r* k( Vcould receive up to $2,000 for their education.
0 C$ A7 \* @% u6 {/ SAdditionally, in terms of post-secondary education and low-income families, the2 {2 d1 B5 m: L/ B
government has introduced a new one-time grant of up to $3,000 for first-year
- a% J& }8 ]0 w% |students whose family income hovers around $35,000 or less a year.( u9 P7 e2 ^: G# M" X0 e
Alberta Centennial Education Savings Plan Act" J: K; }$ s3 h( y, J* ~% i
During the 2004 Spring Sitting, the Alberta Government introduced and' e1 e5 N- Z5 E" D) W' |
subsequently passed the Alberta Centennial Education Savings Plan Act. The4 K% Z6 X B( T* E
program created by the Act is available only to residents of Alberta who have
" R# [! v- R& T' q/ ]0 O1 g" {9 \9 Echildren born after January 1, 2005 (Alberta’s Centennial). The program, at first) }5 ~3 p& y/ j3 }/ w: {# _
glance, seems quite simple in scope but it does have many intricate details that, f6 y9 H- i3 d1 q
once communicated, reveal a complicated program that relies on proactive parents
0 j3 I! W7 e* N: s9 \8 Gto absorb the full benefit of the program.1 J" s8 n# M" H2 S; h( N
Alberta residents, who have a baby born on January 1, 2005, or after, will be' a4 k- g) [6 q1 A; y; u" X
eligible for a $500.00 grant toward the baby’s established RESP. The grant will
8 v. n7 L4 A P# R$ m; E) ^only be awarded if a RESP is established within the first year of the baby’s birth
7 z. z" k+ s% w, y(though Alberta Learning is looking to extend this deadline to two years or, albeit- D' X) j$ d7 y
unlikely, extending the deadline until the baby has reached their first year of& R9 }' ]0 E& O) f2 _5 s; j+ [
schooling). Should a year elapse and the parents do not arrange an RESP account,4 T# C% t: X! b# N0 Q0 M& k
for the baby, then the baby will not receive the $500.00 grant, period. Subsequent9 L, r4 {: T) f# t5 @0 w! y
$100.00 grants are awarded when the child reaches grades 3, 6 and 9. Each of
3 g7 ~% [8 u" q5 J- dthose grants will require parents to provide matching dollars to qualify. These+ m% }9 D8 C" I* `
grants are awarded with the same limitations and restrictions as the initial $500.00
- U! j8 d, J0 n O+ T M; {grant. Potentially, an RESP could receive up to $800.00 in Provincial grant money. |
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