FOR IMMEDIATE RELEASE
June 14, 2006
OTTAWA, ONTARIO - The Department of Human Resources and Social Development distributed statutory notices to over 280,000 Canadian families this week advising them that their children qualify for a $500 Canada Learning Bond to help them start saving towards their education after high school.
"The Canada Learning Bond helps to create greater opportunity for Canadians by ensuring that those from all income levels have better access to post-secondary education. This is an investment in our children's future, and in Canada 's future," stated Minister Finley.
The Canada Learning Bond is available to children born after December 31, 2003 to families that receive the National Child Benefit Supplement, sometimes called the "family allowance" or "baby bonus." This is usually paid to families whose net family incomes are about $36,000 or less per year.
The statutory notice informs parents that when they open a Registered Education Savings Plan (RESP) for their child, the Government of Canada will pay $500 directly into the RESP. The Canada Learning Bond will also contribute an extra $100 a year for up to 15 years into the child's RESP, as long as the family continues to receive the NCB Supplement. With interest, these entitlements could be worth up to $3,000 by the time the child reaches 18 years of age.
While the Canada Learning Bond offers education savings assistance to children born after December 31, 2003 in modest income families, all Canadian children qualify for help from the Government of Canada through the Canada Education Savings Grant (CESG). Depending on family income, the Canada Education Savings Grant will add from 20 to 40 per cent on the first $500 of RESP contributions each year, and 20 per cent on additional contributions up to $2,000 each year.
Both the Canada Learning Bond and the CESG can be used to pay for full-time or part-time studies in an apprenticeship program, trade school, CEGEP, college or university.
Brochures on the Canada Learning Bond and the Canada Education Savings Grant are available online at www.hrsdc.gc.ca (SEARCH "CLB" or "CESG"). For more information on these programs, call 1 800 O Canada (1-800-622-6232), use the TTY number (1-800-926-9105), visit a Service Canada Centre or look on the Internet at www.canlearn.ca .
For further information (media only):
Media Relations Office
Human Resources and Social Development
(819) 994-5559
