April 2004, Canadian Minister of Finance, Ralph Goodale
As part of the 2004 Canadian federal budget, the Minister of FinanceRalph Goodale introduced the Canada Learning Bond as a way to encourage low-income families to use a RESP for saving money to be used for a child's post-secondary education.[1] The maximum net benefit outlined per child was $2000 (CA$) over fifteen years and the budget estimated over 120,000 newborn children would be eligible in 2004 with an estimated budget cost of $85 million.[1] As part of the 2006 Canadian federal budget, Minister of Finance Jim Flaherty maintained the status quo of the CLB program by specifying that the proposed 2006 Universal Child Care Benefit (i.e., $1,200 per year per child under six) would not be considered as income when determining eligibility for the CLB.[2] As of 2006, the program did not achieve its participation or distribution goals.[3] Less than five percent of eligible children received the grant over the program's first two and a half years (i.e., 19,259 out of 422,048).[3] In addition, the federal government distributed $12 million rather than the $192.5 million budgeted for the same time period.[3] In December 2006, a spokesperson for Minister of Human ResourcesDiane Finley described the launch of marketing efforts to address the low awareness of the CLB program.[3] In a presentation to the House of Commons of Canada Standing Committee on Finance in August 2007, the Canadian Association of University Teachers recommended converting the CLB, Canada Education Savings Grant, and Canada Millennium Scholarship Foundation into one annual needs-based grant program for eligible post-secondary students.[4]
Current programedit
The Canadian federal government provides the CLB to families who are entitled to the NCB and have children under the age of fifteen who were born after 2003.[1] In the first year of eligibility per child, the family receives $25 to cover the cost of setting up a RESP with the child as a beneficiary and $500 payable into that RESP.[1] After setup, the Canadian federal government provides a $100 CLB installment payment for each year the family remains entitled to the NCB and until the child turns fifteen.[1] If an eligible family does not apply for a CLB after the birth of a child, then they have until the child's eighteenth birthday to apply and receive payments for the years the family was eligible.[5] If the family does not apply prior to the child's eighteenth birthday, then the child can apply for their own RESP and receive the CLB as long as they do so before their twenty-first birthday.[5] Once the beneficiary of the RESP enrolls in a qualified educational program, then the beneficiary receives the balance in the account through Educational Assistance Payments.[5] If the beneficiary of the RESP does not enroll in an educational program after high school, then the CLB payments must be returned to the Canadian federal government because the CLB is not transferable.[5]
^Canadian Association of University Teachers (2007, August). Statement to the House of Commons Standing Committee on Finance regarding the 2007 pre-budget consultations. Retrieved June 24, 2008, from http://www.caut.ca/pages.asp?page=584 2011-07-06 at the Wayback Machine
canada, learning, bond, french, études, canadien, grant, paid, government, canada, assist, income, families, with, saving, money, their, children, post, secondary, education, relies, primarily, national, child, benefit, program, determine, which, families, eli. The Canada Learning Bond French Bon d etudes canadien CLB is a grant paid by the government of Canada to assist low income families with saving money for their children s post secondary education The CLB relies primarily on the National Child Benefit NCB program to determine which families may be eligible and the tax regulations for the Registered Education Savings Plan RESP to guide the eventual use of the CLB funds As of 1 July 2005 the CLB is legislated by the Canada Education Savings Act College Graduation Contents 1 History 2 Current program 3 See also 4 External links 5 ReferencesHistory edit nbsp April 2004 Canadian Minister of Finance Ralph Goodale As part of the 2004 Canadian federal budget the Minister of Finance Ralph Goodale introduced the Canada Learning Bond as a way to encourage low income families to use a RESP for saving money to be used for a child s post secondary education 1 The maximum net benefit outlined per child was 2000 CA over fifteen years and the budget estimated over 120 000 newborn children would be eligible in 2004 with an estimated budget cost of 85 million 1 As part of the 2006 Canadian federal budget Minister of Finance Jim Flaherty maintained the status quo of the CLB program by specifying that the proposed 2006 Universal Child Care Benefit i e 1 200 per year per child under six would not be considered as income when determining eligibility for the CLB 2 As of 2006 the program did not achieve its participation or distribution goals 3 Less than five percent of eligible children received the grant over the program s first two and a half years i e 19 259 out of 422 048 3 In addition the federal government distributed 12 million rather than the 192 5 million budgeted for the same time period 3 In December 2006 a spokesperson for Minister of Human Resources Diane Finley described the launch of marketing efforts to address the low awareness of the CLB program 3 In a presentation to the House of Commons of Canada Standing Committee on Finance in August 2007 the Canadian Association of University Teachers recommended converting the CLB Canada Education Savings Grant and Canada Millennium Scholarship Foundation into one annual needs based grant program for eligible post secondary students 4 Current program editThe Canadian federal government provides the CLB to families who are entitled to the NCB and have children under the age of fifteen who were born after 2003 1 In the first year of eligibility per child the family receives 25 to cover the cost of setting up a RESP with the child as a beneficiary and 500 payable into that RESP 1 After setup the Canadian federal government provides a 100 CLB installment payment for each year the family remains entitled to the NCB and until the child turns fifteen 1 If an eligible family does not apply for a CLB after the birth of a child then they have until the child s eighteenth birthday to apply and receive payments for the years the family was eligible 5 If the family does not apply prior to the child s eighteenth birthday then the child can apply for their own RESP and receive the CLB as long as they do so before their twenty first birthday 5 Once the beneficiary of the RESP enrolls in a qualified educational program then the beneficiary receives the balance in the account through Educational Assistance Payments 5 If the beneficiary of the RESP does not enroll in an educational program after high school then the CLB payments must be returned to the Canadian federal government because the CLB is not transferable 5 See also editRegistered Education Savings Plan Canada Education Savings GrantExternal links editCanada Learning BondReferences edit a b c d e Department of Finance Canada 2004 March 23 Learning Cornerstone of Canada s economic and social progress Retrieved June 22 2008 from http www fin gc ca budget04 pamph paleae htm Archived 2008 09 23 at the Wayback Machine Department of Finance Canada 2006 May 2 Building a better Canada Families and communities Retrieved June 22 2008 from http www fin gc ca budget06 bp bpc3ce htm Archived 2008 06 13 at the Wayback Machine a b c d Schmidt S 2006 December 22 Ottawa education initiative falling flat CanWest News Service Retrieved June 24 2008 from http www canada com saskatoonstarphoenix story html id 720dfbc5 5279 478a 8765 82df67b45f1c amp k 63142 Archived 2007 11 07 at the Wayback Machine Canadian Association of University Teachers 2007 August Statement to the House of Commons Standing Committee on Finance regarding the 2007 pre budget consultations Retrieved June 24 2008 from http www caut ca pages asp page 584 Archived 2011 07 06 at the Wayback Machine a b c d Human Resources and Social Development Canada 2008 June 5 Canada Learning Bond Frequently asked questions Retrieved June 22 2008 from http www hrsdc gc ca en learning education savings publicsection CESP CLB FAQs shtml Archived 2008 08 01 at the Wayback Machine Retrieved from https en wikipedia org w index php title Canada Learning Bond amp oldid 1197391322, wikipedia, wiki, book, books, library,
