Receiving money for a child's post-secondary education is easier than ever
TORONTO, April 14, 2018 /CNW/ - When more people can afford post-secondary education, our economy can grow and our middle class can thrive. That is why the Government of Canada is helping low- and middle-income families save money for their children's post-secondary education.
Today, on behalf of the Honourable Patty Hajdu, Minister of Employment, Workforce Development and Labour, Nathaniel Erskine-Smith, Member of Parliament for Beaches–East York, along with the Honourable Tracy MacCharles, Ontario Minister of Government and Consumer Services, announced an important change to Ontario's Newborn Bundle - the province's on-line birth registration service. As part of the new 5-in-1 Newborn Bundle, the new Education Savings Referral Service will help parents of newborns open a Registered Education Savings Plan (RESP) and request the Canada Education Savings Grant and/or the Canada Learning Bond.
Previously, the 4-in-1 Newborn Bundle allowed parents of newborns living in Ontario to register their child's birth, request a birth certificate, apply for a Social Insurance Number for the child and apply for the Canada Child Benefit. By expanding the Newborn Bundle, the Government of Canada and the Government of Ontario are making it easier for parents to get a head start on saving for their child's future education.
"Making post-secondary education more affordable for all Canadians, especially those from low- and middle-income families, isn't just the right thing to do - it's the smart thing to do. Children with education savings are more likely to attend and complete post-secondary education and graduate with less debt. Helping more people access post-secondary education is a key way in which we can grow the economy and strengthen the middle class."
- The Honourable Patty Hajdu, Minister of Employment, Workforce Development and Labour
"Ontario is the first province to bundle an Education Savings Referral Service for parents when registering their newborn. This important partnership with the Government of Canada will help children eligible for financial support towards their future education, receive it when they need it most."
- The Honourable Tracy MacCharles, Ontario Minister of Government and Consumer Services
"Studies show children with a higher education experience a better quality of life, which is every parent's wish. Through Ontario's new 5-in-1 Newborn Bundle, families can choose to be contacted about education savings incentives like the Canada Learning Bond, which can provide up to $2,000 for a child's post-secondary education."
- Nathaniel Erskine-Smith, Member of Parliament for Beaches–East York
- As of the end of December 2017, the Government of Canada had made over $1 billion in Canada Learning Bond payments into RESPs of low-income children since its launch in 2004.
- Over $1 billion dollars in combined Canada Learning Bond and Canada Education Savings Grant payments were made into the RESPs of eligible Canadian children in 2017 alone.
- In May 2017, the Government of Canada provided the millionth Canada Learning Bond in an RESP; helping 1 million Canadian children save for their post-secondary education.
- Over 1.3 million births have been registered through the 4-in-1 Newborn Bundle since the application was launched in 2006.
Canada Education Savings Program
The Canada Learning Bond is money that the Government of Canada deposits directly in Registered Education Savings Plans (RESP) of children from low-income families, born in 2004 or later, to help pay for their post-secondary education. The Bond provides an initial payment of $500, plus $100 for each year of eligibility up to age 15, for a maximum of $2,000. Personal contributions are not required to receive the Bond.
To be eligible for the Canada Learning Bond, a child must be from a low-income family and:
- have been born on or after January 1, 2004;
- be a resident of Canada;
- have a valid Social Insurance Number; and
- be named as a beneficiary to an RESP.
The Canada Education Savings Grant consists of a basic grant of 20 percent on the first $2,500 in annual personal contributions to an RESP (available to all eligible Canadians regardless of their family income), as well as the additional amount of Canada Education Savings Grant, which is:
a) 10 percent on the first $500 of annual personal contributions for children from families with an adjusted income between $46,605 and $93,208; or
b) 20 percent on the first $500 of annual personal contributions for children from families with an adjusted income of $46,605 or less.
The Grant is available until the calendar year in which the beneficiary turns 17, and the maximum lifetime amount, including the additional amount of Canada Education Savings Grant, is $7,200.
The child's primary caregiver (and effective January 2018, the spouse or common-law partner of the primary caregiver) can request the Canada Learning Bond on behalf of an eligible child. The primary caregiver is the person who is eligible to receive the Canada Child Benefit in the child's name. The child's primary caregiver must have applied for the Canada Child Benefit for the child through the Canada Revenue Agency and must continue to file income tax returns, allowing eligibility to be validated. Children in care qualify for the Bond.
Education Savings Referral Added to 5-in-1 Newborn Bundle
Ontario is the first province to bundle an Education Savings Referral service for parents when they register their newborn and apply for birth products through ServiceOntario. Parents may now choose to be contacted by a participating RESP promoter to start the process of opening an RESP and requesting education savings incentives - the Canada Education Savings Grant and the Canada Learning Bond - for their child.
The expanded service, which launched on March 25, aims to increase access to education savings incentives offered through the Government of Canada.
Through the 5-in-1 Newborn Bundle, parents of newborns living in Ontario will continue to be able to:
- register their child's birth;
- request a birth certificate or birth certificate with parental information;
- apply for a Social Insurance Number; and
- sign up for Canada child benefits (including Ontario child benefits).
Also new to the bundle is the option to order a birth certificate that includes parental information, which will make it easier for parents to apply for products for their children that require proof of parentage, such as a child's passport application.
SOURCE Employment and Social Development Canada
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