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Thanks, here are details.
Canada Learning Bond
7 C3 i$ U7 j/ F' W( s2 a7 pThe Federal Government, in the 2004 Budget, introduced the Canada Learning
% @- l G4 M l+ v& MBond. The Bond is aimed at helping low-income families save for their children’s+ c7 P, E9 O1 E2 C4 b5 P4 @
post-secondary education pursuits. Beginning in 2004, each child born to lowincome
! o# N- n1 o5 qfamilies, those earning $35,000 or less and who are also entitled to receive
( G7 o* T/ A2 E/ L8 \+ Othe National Child Benefit, will receive a $500 Canada Learning Bond.% P) [! c. o' {$ T: C
Assuming a child remains qualified for the Canada Learning Bond, the child will0 {+ d S) f9 B/ q( g8 ?
continue to receive $100.00 in each subsequent year in Canada Learning Bond8 r4 i, _9 Y3 a$ i
installments. The Federal Government projects that the Canada Learning Bond will
& g6 \: p' E/ s f# T- tcarry a cost of up to $85 million this year and up to 120,000 children will benefit
5 i. K0 d3 @ |% E* t2 l i6 ?from the program2. The government says a child living in a low-income household4 N/ }# p, E9 k: ?1 _7 ]; {
could receive up to $2,000 for their education.; J: [* E% d, r# h+ l% a) H
Additionally, in terms of post-secondary education and low-income families, the) z% T) T$ b `
government has introduced a new one-time grant of up to $3,000 for first-year! B+ X3 Z. v" W$ g
students whose family income hovers around $35,000 or less a year.
8 v5 g6 f. _- V" }Alberta Centennial Education Savings Plan Act
* U* X6 F" R& O0 `During the 2004 Spring Sitting, the Alberta Government introduced and
" n Y% ?6 b1 i4 n8 F* esubsequently passed the Alberta Centennial Education Savings Plan Act. The( Z) s. ~# X0 b( L2 ^9 N: ^& J
program created by the Act is available only to residents of Alberta who have9 P w* v$ [, F# o0 f6 B- D' l( M8 t
children born after January 1, 2005 (Alberta’s Centennial). The program, at first
9 P- J( p- k6 z9 i4 hglance, seems quite simple in scope but it does have many intricate details that,% r7 B4 y' a+ |6 E
once communicated, reveal a complicated program that relies on proactive parents+ C0 v ?% r( }& L0 W" N& Y
to absorb the full benefit of the program.
. f5 q0 y- v' U9 MAlberta residents, who have a baby born on January 1, 2005, or after, will be5 J* i B5 V" y8 k
eligible for a $500.00 grant toward the baby’s established RESP. The grant will
4 c! I4 @9 G7 X3 w' monly be awarded if a RESP is established within the first year of the baby’s birth
4 Z. G! ^3 H- D1 p- `: }3 {(though Alberta Learning is looking to extend this deadline to two years or, albeit
. T5 S; w. Q5 y. O2 Yunlikely, extending the deadline until the baby has reached their first year of& `- r4 Y& r- L5 c* v6 H
schooling). Should a year elapse and the parents do not arrange an RESP account,
8 q% @% [: h( _' p4 f9 Xfor the baby, then the baby will not receive the $500.00 grant, period. Subsequent& j/ y3 i1 h7 K* x2 f- g2 ?
$100.00 grants are awarded when the child reaches grades 3, 6 and 9. Each of
( @; m7 c; V, K. W( t* lthose grants will require parents to provide matching dollars to qualify. These
% e W6 n6 K6 b# ]/ Lgrants are awarded with the same limitations and restrictions as the initial $500.00- p; P8 c6 m W! ^- W
grant. Potentially, an RESP could receive up to $800.00 in Provincial grant money. |
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