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Thanks, here are details.
Canada Learning Bond1 p8 O; V" I0 {" l) u3 {+ s
The Federal Government, in the 2004 Budget, introduced the Canada Learning; l; f3 b/ I C; L ]
Bond. The Bond is aimed at helping low-income families save for their children’s
* S0 s; P- k3 Vpost-secondary education pursuits. Beginning in 2004, each child born to lowincome
! `+ q% X, N- B( Qfamilies, those earning $35,000 or less and who are also entitled to receive% d0 B, W7 X6 G+ @
the National Child Benefit, will receive a $500 Canada Learning Bond.
G# F# @- {' [" [% e7 A4 }. XAssuming a child remains qualified for the Canada Learning Bond, the child will. Y! D) h* I- w9 o9 c" d; `
continue to receive $100.00 in each subsequent year in Canada Learning Bond `7 }; w+ m, {/ C
installments. The Federal Government projects that the Canada Learning Bond will
- c/ r( ~) z7 T9 n; N# H3 kcarry a cost of up to $85 million this year and up to 120,000 children will benefit* C7 l1 s. F. }9 n
from the program2. The government says a child living in a low-income household
* A1 J: W# h! M5 V( K! R! y* i7 Mcould receive up to $2,000 for their education.7 N+ I' F: x6 ]; B& n7 W2 `
Additionally, in terms of post-secondary education and low-income families, the) N9 n {5 V5 U" | Y
government has introduced a new one-time grant of up to $3,000 for first-year
0 I; W+ J3 K+ a3 e/ h6 v" f% |students whose family income hovers around $35,000 or less a year.9 Q1 y8 \! `9 y2 P$ Q
Alberta Centennial Education Savings Plan Act' T8 o" F( H; r0 ^0 G5 z
During the 2004 Spring Sitting, the Alberta Government introduced and
% M- _' F4 b3 Z" Y& p% hsubsequently passed the Alberta Centennial Education Savings Plan Act. The
Q* k' X; @4 @: j9 d( J/ y% L0 wprogram created by the Act is available only to residents of Alberta who have+ D) ?$ J9 }# t+ {8 s' e0 v
children born after January 1, 2005 (Alberta’s Centennial). The program, at first+ R& `+ @1 @& T8 R s$ n ^: k) Z
glance, seems quite simple in scope but it does have many intricate details that,0 f E0 D- G- D' f
once communicated, reveal a complicated program that relies on proactive parents: x# A3 ~& z) }! u
to absorb the full benefit of the program.
$ A$ a) G" o z) T+ g, M; yAlberta residents, who have a baby born on January 1, 2005, or after, will be
1 ~. U; e* J4 X8 s9 X5 Seligible for a $500.00 grant toward the baby’s established RESP. The grant will
6 s& P3 B$ b L- l& e ponly be awarded if a RESP is established within the first year of the baby’s birth9 U! R0 q. V0 ^8 x
(though Alberta Learning is looking to extend this deadline to two years or, albeit' a( h U, ~( v1 G! b
unlikely, extending the deadline until the baby has reached their first year of, K1 d9 F7 f" h* C+ w2 p, l9 k
schooling). Should a year elapse and the parents do not arrange an RESP account,
" p; g' `+ E# }/ Cfor the baby, then the baby will not receive the $500.00 grant, period. Subsequent( i9 `6 z. {5 }
$100.00 grants are awarded when the child reaches grades 3, 6 and 9. Each of7 [3 h: `" Q' V* p8 @8 ]
those grants will require parents to provide matching dollars to qualify. These* }8 e$ e9 \! J% C
grants are awarded with the same limitations and restrictions as the initial $500.00
) r3 I g5 ?( K2 ~- ?$ o/ wgrant. Potentially, an RESP could receive up to $800.00 in Provincial grant money. |
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