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Thanks, here are details.
Canada Learning Bond8 ?/ [/ o& u( G- w. B' ~4 [, _1 {2 @
The Federal Government, in the 2004 Budget, introduced the Canada Learning9 x% e& [9 z, \# E6 q- k
Bond. The Bond is aimed at helping low-income families save for their children’s% V" k8 ?1 q3 Y+ P: x& b
post-secondary education pursuits. Beginning in 2004, each child born to lowincome' \7 E9 i8 _- Q" Z7 y4 [7 d
families, those earning $35,000 or less and who are also entitled to receive; t. ~! h$ C1 |
the National Child Benefit, will receive a $500 Canada Learning Bond.
0 p# d5 }6 Y* y# {& f C( J: M# uAssuming a child remains qualified for the Canada Learning Bond, the child will
' c5 W% s* J/ x/ S4 G! C. z" Ocontinue to receive $100.00 in each subsequent year in Canada Learning Bond$ t, S. e) v8 j3 o$ I
installments. The Federal Government projects that the Canada Learning Bond will7 g: j- i4 c; j2 }9 Z5 X7 O
carry a cost of up to $85 million this year and up to 120,000 children will benefit$ Z2 x) o: d9 m: U: x D( w
from the program2. The government says a child living in a low-income household
6 H" Z1 h" m6 f9 A* Ucould receive up to $2,000 for their education.
* X L( ~0 x. NAdditionally, in terms of post-secondary education and low-income families, the P1 ^7 R$ \0 _0 m' ~
government has introduced a new one-time grant of up to $3,000 for first-year
3 t. s! X4 m8 ?5 N& s" m) [students whose family income hovers around $35,000 or less a year.% j6 \! v, w, ?1 u
Alberta Centennial Education Savings Plan Act
* v6 P4 A- ^5 Y. O, Y! K0 z4 a! ? wDuring the 2004 Spring Sitting, the Alberta Government introduced and& G( G/ a1 ]* a9 B* W
subsequently passed the Alberta Centennial Education Savings Plan Act. The3 R) \+ c" B+ z% h. S$ [
program created by the Act is available only to residents of Alberta who have
- s, V) e" l: M- }$ _( h3 q8 vchildren born after January 1, 2005 (Alberta’s Centennial). The program, at first A' _7 j, X; \/ D+ f) m: } A
glance, seems quite simple in scope but it does have many intricate details that,
) S0 y1 k+ X* U9 m! ~) xonce communicated, reveal a complicated program that relies on proactive parents
( Y/ p' Q' S2 i0 Hto absorb the full benefit of the program.
+ E3 Z5 s! ]/ c! k/ QAlberta residents, who have a baby born on January 1, 2005, or after, will be
7 V. r! B+ A& Y. u9 seligible for a $500.00 grant toward the baby’s established RESP. The grant will
' V( K' k6 f! A5 m; I: v" k2 Bonly be awarded if a RESP is established within the first year of the baby’s birth7 h2 X( @0 T& g5 ]0 Q
(though Alberta Learning is looking to extend this deadline to two years or, albeit
$ B3 C+ H% v( _unlikely, extending the deadline until the baby has reached their first year of
( I- V2 \' ^% v% [' vschooling). Should a year elapse and the parents do not arrange an RESP account,
* `( S8 e, m! m ~! a/ F) Ifor the baby, then the baby will not receive the $500.00 grant, period. Subsequent1 W7 i2 `. [% E) B6 D/ p
$100.00 grants are awarded when the child reaches grades 3, 6 and 9. Each of
% [0 F9 C" a- ~, K1 |: b i4 uthose grants will require parents to provide matching dollars to qualify. These0 m5 K6 u) f$ s+ j7 |
grants are awarded with the same limitations and restrictions as the initial $500.00
Z5 C7 S0 h4 S5 u1 ogrant. Potentially, an RESP could receive up to $800.00 in Provincial grant money. |
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