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Thanks, here are details.
Canada Learning Bond
9 o6 {/ T, V6 o* OThe Federal Government, in the 2004 Budget, introduced the Canada Learning6 ^# _, q5 N1 { H$ G
Bond. The Bond is aimed at helping low-income families save for their children’s: M2 Y+ E- N7 W7 {
post-secondary education pursuits. Beginning in 2004, each child born to lowincome
( H l, ~0 y# ^/ ^families, those earning $35,000 or less and who are also entitled to receive" A2 s \3 r2 e" f
the National Child Benefit, will receive a $500 Canada Learning Bond.- R# S, [" G1 n6 _5 f- R
Assuming a child remains qualified for the Canada Learning Bond, the child will7 ]" c# K3 D( k, _" ?
continue to receive $100.00 in each subsequent year in Canada Learning Bond: y& Y2 ~6 L% G, ?. S
installments. The Federal Government projects that the Canada Learning Bond will
( J8 m7 T ~4 f7 I* Ucarry a cost of up to $85 million this year and up to 120,000 children will benefit
* m& a$ d6 s* g& w7 W$ Ffrom the program2. The government says a child living in a low-income household
, [' g1 H7 X1 ^5 qcould receive up to $2,000 for their education.
% k) A* `5 T+ R/ X1 s, z0 hAdditionally, in terms of post-secondary education and low-income families, the; N& U/ Y; d& o4 g2 c( ]
government has introduced a new one-time grant of up to $3,000 for first-year# ]' t8 M+ a2 ~/ B% b
students whose family income hovers around $35,000 or less a year.) x9 ^0 F$ f% _& |" q
Alberta Centennial Education Savings Plan Act
2 y- K1 ?! W7 ?9 S' W' V0 a/ hDuring the 2004 Spring Sitting, the Alberta Government introduced and
$ C7 z. G& B) n) csubsequently passed the Alberta Centennial Education Savings Plan Act. The
8 S' y1 I' {( Uprogram created by the Act is available only to residents of Alberta who have
0 A9 K4 v2 p; f# Bchildren born after January 1, 2005 (Alberta’s Centennial). The program, at first" H. G6 D4 r/ R2 I7 q
glance, seems quite simple in scope but it does have many intricate details that,
. G% W3 x$ y4 l, A5 ^once communicated, reveal a complicated program that relies on proactive parents
; X. }8 k" E& N. {1 [to absorb the full benefit of the program.
; B( _) k# D9 ]" i2 U1 k; \" j; dAlberta residents, who have a baby born on January 1, 2005, or after, will be
1 X9 v4 m' Y8 D( ~; a; V: G7 `' beligible for a $500.00 grant toward the baby’s established RESP. The grant will
! L7 L+ ~* m, k3 G9 B4 C, H& Nonly be awarded if a RESP is established within the first year of the baby’s birth
: Z! x9 g1 L/ c( W/ g6 T3 m- V(though Alberta Learning is looking to extend this deadline to two years or, albeit
. v" m5 J% t# x# ounlikely, extending the deadline until the baby has reached their first year of% t" k3 v5 x! Q8 @; t8 z1 o
schooling). Should a year elapse and the parents do not arrange an RESP account,
7 W. f8 x; X9 S+ Efor the baby, then the baby will not receive the $500.00 grant, period. Subsequent# F* ?) i5 o( l$ p; x
$100.00 grants are awarded when the child reaches grades 3, 6 and 9. Each of* H: k: {9 J Y a2 u, w
those grants will require parents to provide matching dollars to qualify. These; I5 ~- w' P u8 f# A
grants are awarded with the same limitations and restrictions as the initial $500.00
$ B* _% ~( h4 \ X( ~3 agrant. Potentially, an RESP could receive up to $800.00 in Provincial grant money. |
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