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Thanks, here are details.
Canada Learning Bond( ~3 |( a+ b% | N9 p$ H
The Federal Government, in the 2004 Budget, introduced the Canada Learning
2 s6 \( |2 P( A, z7 E! zBond. The Bond is aimed at helping low-income families save for their children’s* x j3 s9 C* Q3 c. J# n4 O r
post-secondary education pursuits. Beginning in 2004, each child born to lowincome; B% I+ I& c. s% Q8 C& h
families, those earning $35,000 or less and who are also entitled to receive& I) W( r0 Q* F* c" ?7 u8 d
the National Child Benefit, will receive a $500 Canada Learning Bond.; H8 ~ M* i" w- x6 Y
Assuming a child remains qualified for the Canada Learning Bond, the child will
% \# @0 T- G8 q1 bcontinue to receive $100.00 in each subsequent year in Canada Learning Bond
% n8 ]) e" b9 y( A+ m# {installments. The Federal Government projects that the Canada Learning Bond will; U# r; k; m2 v, `8 _( w& r8 I
carry a cost of up to $85 million this year and up to 120,000 children will benefit
2 T3 O) c& n4 B# gfrom the program2. The government says a child living in a low-income household
% K- D& V0 d8 I; `2 h& @could receive up to $2,000 for their education.
6 w' E% t9 E7 D& w2 ZAdditionally, in terms of post-secondary education and low-income families, the* Z- P" |. Q7 }
government has introduced a new one-time grant of up to $3,000 for first-year- n6 E+ e, \( U. j/ `
students whose family income hovers around $35,000 or less a year.
8 u: C& ^; T N& {Alberta Centennial Education Savings Plan Act
) h3 ^/ Z! b- {/ I. }9 `During the 2004 Spring Sitting, the Alberta Government introduced and
; v" c% j& W/ Y, R8 B2 ^' `subsequently passed the Alberta Centennial Education Savings Plan Act. The) z7 g# l" D: T+ N. Y
program created by the Act is available only to residents of Alberta who have0 w) r* ]# ?! P* k h( X; B- t
children born after January 1, 2005 (Alberta’s Centennial). The program, at first s6 l! K; c @
glance, seems quite simple in scope but it does have many intricate details that,
( p. n) q: s. k; {. a2 O# Uonce communicated, reveal a complicated program that relies on proactive parents
" H9 n* M& u. \# P# F2 i% b9 B5 Ito absorb the full benefit of the program.
. K0 N% \5 @' d ~9 n& w& HAlberta residents, who have a baby born on January 1, 2005, or after, will be- X/ H7 _2 U1 g5 v. ?! v( C3 U
eligible for a $500.00 grant toward the baby’s established RESP. The grant will
; B- y. }5 |7 p$ C! r7 G) nonly be awarded if a RESP is established within the first year of the baby’s birth, k0 `. M$ i% O* u
(though Alberta Learning is looking to extend this deadline to two years or, albeit
! F5 k9 @9 [8 i( k# n1 bunlikely, extending the deadline until the baby has reached their first year of( ?% \% g8 u2 t0 ?2 C# p6 B, g
schooling). Should a year elapse and the parents do not arrange an RESP account,- y, {" L! e+ o: N ?/ y
for the baby, then the baby will not receive the $500.00 grant, period. Subsequent
+ n. y: [0 F! Q! N7 t: Y$100.00 grants are awarded when the child reaches grades 3, 6 and 9. Each of2 \/ Q- a* C a' P* R; h* b+ }' o R
those grants will require parents to provide matching dollars to qualify. These
c3 k' B1 t# u" tgrants are awarded with the same limitations and restrictions as the initial $500.00
* ^& @5 c5 h3 ^+ h3 A3 Bgrant. Potentially, an RESP could receive up to $800.00 in Provincial grant money. |
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