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Thanks, here are details.
Canada Learning Bond0 o* F# |# [3 | {1 Y. ]7 R# S
The Federal Government, in the 2004 Budget, introduced the Canada Learning
' Q4 @3 d* D$ P3 i: o( dBond. The Bond is aimed at helping low-income families save for their children’s
- T9 R# i( h1 L2 Y: U; Epost-secondary education pursuits. Beginning in 2004, each child born to lowincome; K. T, C. S+ h( X. T9 C5 o. w% M
families, those earning $35,000 or less and who are also entitled to receive
. l* F0 k q$ q: t, Uthe National Child Benefit, will receive a $500 Canada Learning Bond. F9 P5 q: f' s3 I6 _. D- i, y( I
Assuming a child remains qualified for the Canada Learning Bond, the child will
: p A9 G, x. x- ]' }: K! @/ h8 xcontinue to receive $100.00 in each subsequent year in Canada Learning Bond
' W& ?- i6 D, l" Hinstallments. The Federal Government projects that the Canada Learning Bond will% q/ m! B/ i' n" y
carry a cost of up to $85 million this year and up to 120,000 children will benefit: U: j9 d8 y( B3 q
from the program2. The government says a child living in a low-income household2 m% k% l. J5 I( m
could receive up to $2,000 for their education.6 D y$ z( z, j. A+ }+ B
Additionally, in terms of post-secondary education and low-income families, the
4 n7 i. U) N6 ^government has introduced a new one-time grant of up to $3,000 for first-year) e2 } H2 J5 m$ R9 G* e7 N
students whose family income hovers around $35,000 or less a year.
: q& K: Z" q( Z% R" lAlberta Centennial Education Savings Plan Act
! ~5 a9 g, j1 ?* J& O+ nDuring the 2004 Spring Sitting, the Alberta Government introduced and
: K% l/ l8 \$ p9 d& V- |0 ] i3 E xsubsequently passed the Alberta Centennial Education Savings Plan Act. The
& s# e5 V1 H+ B) W& Cprogram created by the Act is available only to residents of Alberta who have
+ C' }, i3 O5 G, ?9 Ychildren born after January 1, 2005 (Alberta’s Centennial). The program, at first
* {* I" J& ^' _9 hglance, seems quite simple in scope but it does have many intricate details that,4 |) d" y0 R' ]5 m( {% G" m
once communicated, reveal a complicated program that relies on proactive parents
& }* w2 d- n( i6 Y1 o5 b: ?3 fto absorb the full benefit of the program.( I% f l9 ]: X' f: y, \$ h8 f
Alberta residents, who have a baby born on January 1, 2005, or after, will be6 p. x" ?' L5 X0 J6 E
eligible for a $500.00 grant toward the baby’s established RESP. The grant will
2 w" @8 @9 b" M2 u; F& e# k- Konly be awarded if a RESP is established within the first year of the baby’s birth e, q0 c) B3 u: k9 {9 N1 I
(though Alberta Learning is looking to extend this deadline to two years or, albeit
! w- a' m6 T( I( @' Z& b0 V' u4 Junlikely, extending the deadline until the baby has reached their first year of2 p( v) i B+ s. T. I
schooling). Should a year elapse and the parents do not arrange an RESP account,3 q i( V7 v$ X# E4 [. x- ]0 f3 @
for the baby, then the baby will not receive the $500.00 grant, period. Subsequent8 t2 r0 G+ u+ ^2 N; a6 r# K1 ^- w& s) h
$100.00 grants are awarded when the child reaches grades 3, 6 and 9. Each of4 N" r/ g# Q. @" W4 v3 `+ E
those grants will require parents to provide matching dollars to qualify. These# T; @* w9 Z' O Z. C# Q% K, ~
grants are awarded with the same limitations and restrictions as the initial $500.00
4 u; T/ h% b" Ggrant. Potentially, an RESP could receive up to $800.00 in Provincial grant money. |
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