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Thanks, here are details.
Canada Learning Bond
& Y; b' [, B9 Q5 @" N/ y( fThe Federal Government, in the 2004 Budget, introduced the Canada Learning
& a; `- {- S+ r/ X8 d. vBond. The Bond is aimed at helping low-income families save for their children’s: s6 ^8 C7 |# z6 T
post-secondary education pursuits. Beginning in 2004, each child born to lowincome1 {' ]2 O9 F8 J* W0 t$ W8 y. w
families, those earning $35,000 or less and who are also entitled to receive
0 W, R/ K2 H7 E: I% n; Cthe National Child Benefit, will receive a $500 Canada Learning Bond.
- C8 A. v6 S" ]( i0 \Assuming a child remains qualified for the Canada Learning Bond, the child will
' x( S7 _- t( ^7 Mcontinue to receive $100.00 in each subsequent year in Canada Learning Bond9 T6 J% d) p6 F. S- s' i% N- E2 c
installments. The Federal Government projects that the Canada Learning Bond will
1 W; m/ q' g* A* {* {- mcarry a cost of up to $85 million this year and up to 120,000 children will benefit" m0 D, Y& E, u7 R2 j4 _
from the program2. The government says a child living in a low-income household
! k3 k6 @: {9 a* xcould receive up to $2,000 for their education.+ o7 j( j. }7 a! A2 c2 V7 o! |' R( t
Additionally, in terms of post-secondary education and low-income families, the% W- `; Q9 l8 X5 n# N, ]
government has introduced a new one-time grant of up to $3,000 for first-year
2 o8 e3 Y+ V3 w2 M- Ystudents whose family income hovers around $35,000 or less a year.
. s$ H5 h; e0 U/ @Alberta Centennial Education Savings Plan Act$ q9 |4 Q8 U: ?, e( e( k0 s
During the 2004 Spring Sitting, the Alberta Government introduced and9 {& |1 G1 y5 x V# O
subsequently passed the Alberta Centennial Education Savings Plan Act. The- S1 b! W9 z* P2 _6 ~3 e6 Q
program created by the Act is available only to residents of Alberta who have
?2 k: p$ Q+ F5 r3 p( wchildren born after January 1, 2005 (Alberta’s Centennial). The program, at first4 t: M8 z& q! c
glance, seems quite simple in scope but it does have many intricate details that,% W0 w+ ]# z4 F& v& D# s
once communicated, reveal a complicated program that relies on proactive parents+ k' T- H( U9 }- \
to absorb the full benefit of the program.
1 \* S! k/ w b4 C( ]# QAlberta residents, who have a baby born on January 1, 2005, or after, will be! `0 y K& `2 r+ M
eligible for a $500.00 grant toward the baby’s established RESP. The grant will: ]4 m$ D7 v% h+ M, Z3 d
only be awarded if a RESP is established within the first year of the baby’s birth
1 C ]7 M9 \) G(though Alberta Learning is looking to extend this deadline to two years or, albeit
( Y) g" X- o1 i& {7 n2 nunlikely, extending the deadline until the baby has reached their first year of
! Z- M% E9 V2 a6 a, I5 Eschooling). Should a year elapse and the parents do not arrange an RESP account,
1 Q9 {/ ~( f/ r: i2 M5 [! V; e5 Qfor the baby, then the baby will not receive the $500.00 grant, period. Subsequent4 d" {7 V8 R, q/ y( u8 t6 u. W
$100.00 grants are awarded when the child reaches grades 3, 6 and 9. Each of
2 c7 E) M7 _1 K3 L& Lthose grants will require parents to provide matching dollars to qualify. These
) @5 h1 B& u. V+ w$ }grants are awarded with the same limitations and restrictions as the initial $500.00
) O! o/ I% F0 O/ mgrant. Potentially, an RESP could receive up to $800.00 in Provincial grant money. |
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