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Thanks, here are details.
Canada Learning Bond
. V% a- n1 A/ YThe Federal Government, in the 2004 Budget, introduced the Canada Learning. O5 U0 X1 v' ^/ g2 Z6 G9 X
Bond. The Bond is aimed at helping low-income families save for their children’s
' q0 j3 i! c; Z6 e O7 \8 u" opost-secondary education pursuits. Beginning in 2004, each child born to lowincome
( s1 q8 g O& F5 E7 Pfamilies, those earning $35,000 or less and who are also entitled to receive; G- p! n, {2 t0 E! Q8 Y: W
the National Child Benefit, will receive a $500 Canada Learning Bond.8 ]% W! w/ T0 s$ P, K
Assuming a child remains qualified for the Canada Learning Bond, the child will" ~6 Y D6 F+ O+ M
continue to receive $100.00 in each subsequent year in Canada Learning Bond3 e: S) y! N4 w; w4 Q$ r) P5 T
installments. The Federal Government projects that the Canada Learning Bond will
1 F6 n/ m4 X, Y) Lcarry a cost of up to $85 million this year and up to 120,000 children will benefit7 k# f% P# q. d# z! X: n& t% Z; P, H
from the program2. The government says a child living in a low-income household- M. ^+ {+ [# y
could receive up to $2,000 for their education.
( d- h3 h/ p% c# O6 c9 iAdditionally, in terms of post-secondary education and low-income families, the
9 e* C( | A7 E! g5 Qgovernment has introduced a new one-time grant of up to $3,000 for first-year6 O) f' ~2 A7 F( k2 c6 M) Q
students whose family income hovers around $35,000 or less a year.
2 O6 ~" K5 _. sAlberta Centennial Education Savings Plan Act
9 e* m! L! F/ T- _7 KDuring the 2004 Spring Sitting, the Alberta Government introduced and
5 Z7 u( B8 t, j6 r- a+ msubsequently passed the Alberta Centennial Education Savings Plan Act. The5 I1 |. J# Q: H; F; I
program created by the Act is available only to residents of Alberta who have
* T6 Q! a% C% [7 V- Gchildren born after January 1, 2005 (Alberta’s Centennial). The program, at first- L4 \1 h# u8 W. O/ @7 f& ]
glance, seems quite simple in scope but it does have many intricate details that,7 a+ ^& ^2 w1 M8 ~6 x5 ^: W
once communicated, reveal a complicated program that relies on proactive parents1 ~# x( I7 f' X/ R
to absorb the full benefit of the program." i7 s7 Z* `% j& ?" K0 t2 ?
Alberta residents, who have a baby born on January 1, 2005, or after, will be
( v5 T1 f1 J# Q$ a1 ~' j* veligible for a $500.00 grant toward the baby’s established RESP. The grant will
+ O" d. L0 J F0 E- honly be awarded if a RESP is established within the first year of the baby’s birth
8 Z6 c& O+ r7 k3 ~! v(though Alberta Learning is looking to extend this deadline to two years or, albeit2 i" T% [# |" ~, z6 p. s1 l
unlikely, extending the deadline until the baby has reached their first year of% q3 Q7 E A- C! ~, c( S
schooling). Should a year elapse and the parents do not arrange an RESP account,
$ f& S3 H: {. q- ifor the baby, then the baby will not receive the $500.00 grant, period. Subsequent/ R+ A- \/ p% ]( v) j8 o4 N
$100.00 grants are awarded when the child reaches grades 3, 6 and 9. Each of k4 `) C; i# H0 h) v6 R- p9 e# h( G2 z
those grants will require parents to provide matching dollars to qualify. These6 K% Y3 V9 [, }
grants are awarded with the same limitations and restrictions as the initial $500.00
1 U8 N# o' C& U( m' p! ]grant. Potentially, an RESP could receive up to $800.00 in Provincial grant money. |
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