MISSISSAUGA, ON, Jan. 23, 2014 /CNW/ - The Honourable Candice Bergen, Minister of State for Social Development, is encouraging families to save for their children's post-secondary education with the help of the Canada Learning Bond and the Registered Education Savings Plans (RESP).
Minister Bergen spoke at the India Rainbow Community Services in Mississauga, which actively promotes education savings in the Greater Toronto Area.
The Canada Learning Bond is $500 that the federal government deposits into a Registered Education Savings Plan (RESP). A child may then be eligible for another $100 per year, until he or she is 15 years old, up to a maximum of $2,000. Parents, or primary caregivers, do not have to contribute any of their own money to receive the Canada Learning Bond. Parents should talk to a financial institution to find out if they are eligible.
- The RESP and the Canada Learning Bond is an easy way for parents to start saving early.
- Families can get the Canada Learning Bond in three steps:
- Obtain a Social Insurance Number for the child
- Open an RESP
- Apply for the Canada Learning Bond
"Our government recognizes that access to post-secondary education is vital, not only for a young person's future, but also for Canada's long-term growth and prosperity. An RESP, supplemented with the Canada Learning Bond, helps modest-income families make post-secondary education a reality for their children. This is important information that every eligible family should know."
Minister of State (Social Development)
"Our post-secondary strategy has a positive impact on the youth of Peel. With hundreds of partners, we are helping every eligible child in Peel to enroll in the Canada Learning Bond, and receive the government funds available to them for their post-secondary education."
Director of Success by Six Peel, Peel Children and Youth Initiative
The Government of Canada offers money to help Canadians with education savings. The Canada Learning Bond was introduced in 2004 to help modest-income families save for their children's education. As of the end of 2012, almost half a million children have received the Canada Learning Bond, for a total of close to $400 million.
To receive the Canada Learning Bond, a child must have been born in 2004 or later. The primary caregiver must also receive the National Child Benefit Supplement under the Canada Child Tax Benefit (sometimes known as the "family allowance" or "baby bonus").
Families can also receive the Canada Education Savings Grant when opening a Registered Education Savings Plan (RESP). The federal government adds between 20 percent and 40 percent of contributions to a child's RESP, depending on family income. The amount could be up to $600 per year, to a lifetime maximum of $7,200 per child.
If a child does not continue his or her education soon after high-school, the RESP can remain open for up to 36 years should the child later pursue post-secondary education.
If the RESP is closed:
- contributions are returned to the subscriber;
- the Canada Learning Bond must be returned to the Government of Canada; and
- the Canada Education Savings Grant can be shared with a brother or sister if he or she has Grant room available—otherwise, the Grant must be returned to the Government of Canada.
For information on how to apply for the Canada Learning Bond, and save for post-secondary education, visit CanLearn.ca or call 1 800 O-Canada (1-800-622-6232).
SOURCE: Employment and Social Development Canada
For further information:
Office of the Minister of State (Social Development)