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Thanks, here are details.
Canada Learning Bond
& m* N" Z d) S& k0 RThe Federal Government, in the 2004 Budget, introduced the Canada Learning
* C1 ~5 R5 A) b; m2 e- nBond. The Bond is aimed at helping low-income families save for their children’s
# J- u3 S* e) g# K* R( t: ppost-secondary education pursuits. Beginning in 2004, each child born to lowincome+ J9 Z( O( e3 J) \1 E
families, those earning $35,000 or less and who are also entitled to receive
5 q! q: R( ?9 b5 _. o4 b- Fthe National Child Benefit, will receive a $500 Canada Learning Bond.
# j( F3 ?! \ a7 L+ I8 _Assuming a child remains qualified for the Canada Learning Bond, the child will& J) ~! H9 o) g9 }: T
continue to receive $100.00 in each subsequent year in Canada Learning Bond
9 q L% ?9 l' `installments. The Federal Government projects that the Canada Learning Bond will, c \. | C) M2 u
carry a cost of up to $85 million this year and up to 120,000 children will benefit0 e- l" C3 G k7 l3 g6 O; i7 X) d" E
from the program2. The government says a child living in a low-income household
7 k+ `- `8 e$ t/ ccould receive up to $2,000 for their education.
& a+ n7 k0 g) A* k. b3 T% tAdditionally, in terms of post-secondary education and low-income families, the
; R# s& Y4 p1 n' s2 {4 ?! k( P( a9 ngovernment has introduced a new one-time grant of up to $3,000 for first-year
: H1 k/ p2 ?& {- @students whose family income hovers around $35,000 or less a year.2 @5 V/ F( }2 F9 z# }
Alberta Centennial Education Savings Plan Act
: F4 M" D) N" R9 gDuring the 2004 Spring Sitting, the Alberta Government introduced and
: k, x9 b" a8 Y) p. usubsequently passed the Alberta Centennial Education Savings Plan Act. The1 i* C% s( f: p1 p( w- ]8 {/ A
program created by the Act is available only to residents of Alberta who have- |$ ]8 d3 B* K
children born after January 1, 2005 (Alberta’s Centennial). The program, at first
# D: [! _4 p$ A* D& Yglance, seems quite simple in scope but it does have many intricate details that,( E2 Y8 K) a2 ~/ }8 F
once communicated, reveal a complicated program that relies on proactive parents; _" {: v! b6 @/ k- y+ T
to absorb the full benefit of the program.& r0 @4 F5 T) e. J$ y N3 @
Alberta residents, who have a baby born on January 1, 2005, or after, will be. A6 K# q9 P' b8 Q+ k, V
eligible for a $500.00 grant toward the baby’s established RESP. The grant will
# f( H+ D* N. E, i6 _) Aonly be awarded if a RESP is established within the first year of the baby’s birth
3 k$ I7 o" G* X2 c M(though Alberta Learning is looking to extend this deadline to two years or, albeit
# I+ T) ?* |/ L' g/ b+ }! Aunlikely, extending the deadline until the baby has reached their first year of# U/ W. b( a: B5 O
schooling). Should a year elapse and the parents do not arrange an RESP account,
3 J# c" \( t7 Z/ D8 \for the baby, then the baby will not receive the $500.00 grant, period. Subsequent
+ w4 Y9 \8 T( [, v, U; d0 R$100.00 grants are awarded when the child reaches grades 3, 6 and 9. Each of
8 j% c& i c, [: K6 Xthose grants will require parents to provide matching dollars to qualify. These- n% Z- ] l' s
grants are awarded with the same limitations and restrictions as the initial $500.00
/ B7 m& X4 i: c. G8 V6 \5 ugrant. Potentially, an RESP could receive up to $800.00 in Provincial grant money. |
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