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Thanks, here are details.
Canada Learning Bond
( t% v2 v. I% F$ JThe Federal Government, in the 2004 Budget, introduced the Canada Learning
) n! F4 l: z% a5 ?Bond. The Bond is aimed at helping low-income families save for their children’s
' ?. G$ g( e+ m/ Zpost-secondary education pursuits. Beginning in 2004, each child born to lowincome
+ Y: r+ J& `* ^" H. K/ l( Mfamilies, those earning $35,000 or less and who are also entitled to receive; }* x% C7 K1 r* z' [, c" Z
the National Child Benefit, will receive a $500 Canada Learning Bond.1 L; Q, Q. ^8 E# @/ v: S/ |
Assuming a child remains qualified for the Canada Learning Bond, the child will% H4 q/ y7 r# |
continue to receive $100.00 in each subsequent year in Canada Learning Bond
: }3 n% s2 h8 cinstallments. The Federal Government projects that the Canada Learning Bond will
' _( B# l+ X, U4 O6 ]% ocarry a cost of up to $85 million this year and up to 120,000 children will benefit
. l2 x' Z+ J0 s2 mfrom the program2. The government says a child living in a low-income household
3 w/ P6 U* v, ocould receive up to $2,000 for their education.
0 a! Z: h9 G( W$ _% K9 m7 A( |Additionally, in terms of post-secondary education and low-income families, the
& }( ^4 g! T# ~# Mgovernment has introduced a new one-time grant of up to $3,000 for first-year
* I4 Y0 ?9 D' U* Jstudents whose family income hovers around $35,000 or less a year.: @* i. E' y+ Q0 S* d/ `1 V" Q" t
Alberta Centennial Education Savings Plan Act
$ Y1 K' T2 I* e% zDuring the 2004 Spring Sitting, the Alberta Government introduced and
* G/ `0 F* @+ S: _( Z$ Osubsequently passed the Alberta Centennial Education Savings Plan Act. The- e5 U4 A! p3 L/ x
program created by the Act is available only to residents of Alberta who have7 X% T* f. j- v+ G
children born after January 1, 2005 (Alberta’s Centennial). The program, at first
2 ^7 X3 O1 T C7 c) C' B# B8 wglance, seems quite simple in scope but it does have many intricate details that,
" q. v+ x8 h: q; g6 bonce communicated, reveal a complicated program that relies on proactive parents
' g3 F' c/ p0 {/ Y( [$ p$ I1 ~) I2 Nto absorb the full benefit of the program.. l; G% ^2 k& C: d A
Alberta residents, who have a baby born on January 1, 2005, or after, will be3 p4 G7 ?- Q* |& A
eligible for a $500.00 grant toward the baby’s established RESP. The grant will8 n3 W$ `8 G1 W6 X
only be awarded if a RESP is established within the first year of the baby’s birth2 N$ b9 s& q' v' q! P v. C
(though Alberta Learning is looking to extend this deadline to two years or, albeit% K/ U# Y1 v6 G2 t- [+ `! ?9 X
unlikely, extending the deadline until the baby has reached their first year of
! j8 H% F, f1 V$ W! L( ^schooling). Should a year elapse and the parents do not arrange an RESP account,
# b+ i( ~/ L, ?for the baby, then the baby will not receive the $500.00 grant, period. Subsequent+ Q& C1 x- z0 D
$100.00 grants are awarded when the child reaches grades 3, 6 and 9. Each of: j6 h9 g0 l( T8 `$ t1 H
those grants will require parents to provide matching dollars to qualify. These8 }% C! U3 m# D; J% J+ m
grants are awarded with the same limitations and restrictions as the initial $500.00
9 ?' T3 _6 B- ?grant. Potentially, an RESP could receive up to $800.00 in Provincial grant money. |
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