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Thanks, here are details.
Canada Learning Bond
3 `5 I: s$ o1 `% [The Federal Government, in the 2004 Budget, introduced the Canada Learning
7 _, ~/ N, O! k" V& R$ [Bond. The Bond is aimed at helping low-income families save for their children’s t8 {( y1 m6 `: {' a
post-secondary education pursuits. Beginning in 2004, each child born to lowincome9 Z e' K7 ~2 m c- V! F. A
families, those earning $35,000 or less and who are also entitled to receive
3 f: w, k( E- V- h' }# C: L/ {the National Child Benefit, will receive a $500 Canada Learning Bond.& ~+ L0 F3 \3 S f4 B0 x
Assuming a child remains qualified for the Canada Learning Bond, the child will
% s' t) q$ Y- M( x/ \/ _# D: rcontinue to receive $100.00 in each subsequent year in Canada Learning Bond
. _; A9 X* o! X8 y2 Rinstallments. The Federal Government projects that the Canada Learning Bond will
- x( m4 w' p. W( r' F( Hcarry a cost of up to $85 million this year and up to 120,000 children will benefit6 F! \( V2 t1 U
from the program2. The government says a child living in a low-income household8 R6 d. ?5 B g2 T6 U
could receive up to $2,000 for their education.; u% D7 { V8 U; u- Y, p
Additionally, in terms of post-secondary education and low-income families, the& _6 l. ?6 _' M# Y5 ]
government has introduced a new one-time grant of up to $3,000 for first-year6 w: _! ^7 t: y" c: p8 t
students whose family income hovers around $35,000 or less a year.
# @- R; \$ @+ ~# l- fAlberta Centennial Education Savings Plan Act& I, \% i6 i2 m$ n# d- r: v
During the 2004 Spring Sitting, the Alberta Government introduced and
% |7 C' W. U1 h( }, ysubsequently passed the Alberta Centennial Education Savings Plan Act. The2 `6 F. r) z7 J' M
program created by the Act is available only to residents of Alberta who have( f( P l7 j" g3 K
children born after January 1, 2005 (Alberta’s Centennial). The program, at first0 x1 ^* S) m8 r1 u/ s {9 g0 _
glance, seems quite simple in scope but it does have many intricate details that,3 u" c1 h, S5 Y1 x) s0 P3 r
once communicated, reveal a complicated program that relies on proactive parents
K/ X' P+ E* }& I: uto absorb the full benefit of the program.0 \( V d3 E/ J, y
Alberta residents, who have a baby born on January 1, 2005, or after, will be3 V5 |2 K1 E' E) L4 `+ w: F( Z/ }( x
eligible for a $500.00 grant toward the baby’s established RESP. The grant will
0 ]! K9 D; D9 b7 W; y, u9 }only be awarded if a RESP is established within the first year of the baby’s birth
3 u3 o' f& t5 p6 r& O M& {(though Alberta Learning is looking to extend this deadline to two years or, albeit
7 R& z3 P& I0 K* Q- y. Z9 h' u2 Dunlikely, extending the deadline until the baby has reached their first year of
8 q, K3 B1 P* R" H; f9 S; Y8 f: Ischooling). Should a year elapse and the parents do not arrange an RESP account,
( @- V3 ~; U# {for the baby, then the baby will not receive the $500.00 grant, period. Subsequent7 ^: C; B2 F% y J' L; d& P9 a
$100.00 grants are awarded when the child reaches grades 3, 6 and 9. Each of- {8 t8 b- Q; X6 j+ b
those grants will require parents to provide matching dollars to qualify. These
) q& `! H( Z- Q% o, n# O2 jgrants are awarded with the same limitations and restrictions as the initial $500.00
+ `% a' y) ~* Z2 F2 P/ B; Jgrant. Potentially, an RESP could receive up to $800.00 in Provincial grant money. |
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