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Thanks, here are details.
Canada Learning Bond7 L6 M7 |1 ], t
The Federal Government, in the 2004 Budget, introduced the Canada Learning ^8 `0 ^: x; E: I) A, _3 c6 h+ |
Bond. The Bond is aimed at helping low-income families save for their children’s- n ?7 X! a) i8 {' `8 `
post-secondary education pursuits. Beginning in 2004, each child born to lowincome
# O" p2 P0 p/ k( J2 R+ U5 cfamilies, those earning $35,000 or less and who are also entitled to receive# ?- t4 H8 H5 x
the National Child Benefit, will receive a $500 Canada Learning Bond.
* k8 @7 ?0 M, a- W r( C2 e+ _Assuming a child remains qualified for the Canada Learning Bond, the child will
* o! H2 z$ r# B9 kcontinue to receive $100.00 in each subsequent year in Canada Learning Bond
0 u4 J) J* |6 y# w% G7 @2 @7 ]installments. The Federal Government projects that the Canada Learning Bond will% B0 J0 } q5 X
carry a cost of up to $85 million this year and up to 120,000 children will benefit
7 {+ v1 Q7 S3 m0 b# `from the program2. The government says a child living in a low-income household
9 r. P% j9 Y: V! g4 H5 `could receive up to $2,000 for their education.0 b& [+ k) b( x8 u+ F7 V% @3 a
Additionally, in terms of post-secondary education and low-income families, the
2 n8 {8 F) O! Q5 h- ~# Igovernment has introduced a new one-time grant of up to $3,000 for first-year
. V, _% [ F8 r, K* X$ J# r) E1 \students whose family income hovers around $35,000 or less a year.
7 T, K; h& g; I4 lAlberta Centennial Education Savings Plan Act
5 q# w( n! o7 i, E* kDuring the 2004 Spring Sitting, the Alberta Government introduced and' d2 f6 E/ o- \" d/ ]1 S6 p
subsequently passed the Alberta Centennial Education Savings Plan Act. The- b3 A" Q' U$ |4 a
program created by the Act is available only to residents of Alberta who have
' e) O5 H! j4 J! t, g+ H; Achildren born after January 1, 2005 (Alberta’s Centennial). The program, at first& J* G$ p) i' _7 A( Z( e
glance, seems quite simple in scope but it does have many intricate details that,+ G: E& v4 r& j. P) c; G6 U
once communicated, reveal a complicated program that relies on proactive parents
Y6 [+ w; C" _to absorb the full benefit of the program.8 ~* E; ?/ _& i/ j2 t
Alberta residents, who have a baby born on January 1, 2005, or after, will be
- |, t% Y+ ?- H religible for a $500.00 grant toward the baby’s established RESP. The grant will
$ [" @8 W, A; i5 {only be awarded if a RESP is established within the first year of the baby’s birth
' y. @6 f7 a# H) ~ l(though Alberta Learning is looking to extend this deadline to two years or, albeit
" d6 o9 L6 _4 b0 `9 {unlikely, extending the deadline until the baby has reached their first year of, M6 Y/ S8 `/ C* b
schooling). Should a year elapse and the parents do not arrange an RESP account,
/ X1 G" S0 S4 A3 u ^0 I \& ^0 G$ kfor the baby, then the baby will not receive the $500.00 grant, period. Subsequent
' {! j/ F+ V% q" I5 w$100.00 grants are awarded when the child reaches grades 3, 6 and 9. Each of
( L! Z5 E$ ?! N( {7 I8 n) G# t% B" Athose grants will require parents to provide matching dollars to qualify. These
6 E% _* V( a+ }grants are awarded with the same limitations and restrictions as the initial $500.00) M% _5 h% w" @& Z
grant. Potentially, an RESP could receive up to $800.00 in Provincial grant money. |
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