Thanks to the People For Education, we learned that low income families can get “free money” for their children’s education via the Canada Learning Bond.
In order to get the Canada Learning Bond money, you will have to open an RESP (Registered Education Savings Plan) for your child.
For low income families, the following information about the Canada Learning Bond is from Human Resources and Social Development, Government of Canada:
GET $500 FOR YOUR CHILD’S EDUCATION AFTER HIGH SCHOOL
plus an additional $100 per year up to age 15
DO I HAVE TO PUT MONEY INTO THE RESP TO GET THE CANADA LEARNING BOND?
No. Even if you don’t put any of your own money into the RESP right now, the Government of Canada will still deposit the $500 Canada Learning Bond into the RESP account that you opened.
WHO CAN GET THE CANADA LEARNING BOND?
Your child can get the Canada Learning Bond (CLB):
- If you get the National Child Benefit Supplement as part of the Canada Child Tax Benefit (commonly known as “family allowance”). This usually applies to families whose net income is $40,970 or less. Income amount shown is for 2010. The family net income amount is updated each year.
- And also, if your child was born after December 31, 2003.
The features of the Canada Learning Bond include:
- The Canada Learning Bond (CLB) is a $500 grant from the Government of Canada to help you start saving early for your child’s education after high school.
- Your child may also get an extra $100 per year up to age 15, as long as you continue to receive the National Child Benefit Supplement.
- Over time, the Canada Learning Bond could add up to $2,000 in grant money (plus interest) for your child’s education after high school.
- This money can be used to pay for full-time or part-time studies in an apprenticeship program, trade school, CEGEP, college, or university.
- At some financial institutions, you can open an RESP account for free; others have fees. The first Canada Learning Bond payment includes an additional $25 to help cover any costs of opening the RESP account. Be sure to shop around to find an RESP provider that best meets your needs.
- You will not be taxed on money that the Government of Canada adds to your child’s RESP.
- The Canada Learning Bond and the Canada Education Savings Grant will not affect your other Government of Canada benefits.
HOW DO I GET HELP OR MORE INFORMATION?
• Call toll-free at 1 800 O-Canada (1-800-622-6232) for more information and brochures on the Canada Education Savings Grant and RESP.
• Visit a Service Canada Centre near you.
• For more information or for a list of RESP providers, visit CanLearn.ca.
• If you use a TTY, call 1-800-926-9105.
This document is available on demand in alternative formats such as Large Print, Braille, Audio Cassette, CD, DAISY, and Computer Diskette. Call 1 800 O-Canada (1-800-622-6232) to request your copy.
Also available in other languages at CanLearn.ca.
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