Government of Canada makes it easier for families to qualify for the Canada Learning Bond

THUNDER BAY, ONTARIO, Feb. 22, 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 more low- and middle-income families save money for their children's post-secondary education through the Canada Learning Bond (CLB).

The Canada Learning Bond provides up to $2,000 in a Registered Education Savings Plan for children from low-income families, with no personal contribution required. This includes $500 for the first year of eligibility and $100 each following year, until the calendar year they turn 15.

Today, the Honourable Patty Hajdu, Minister of Employment, Workforce Development and Labour, highlighted how the Government of Canada is helping more families save for their children's education. To help more children from low-income families benefit from the Canada Learning Bond, the Government of Canada is launching a pilot project that will explore new ways to increase awareness and access to the Canada Learning Bond.

The Government of Canada is also making it easier for families to qualify for the Canada Learning Bond by allowing the cohabiting spouse or common-law partner of the primary caregiver to request the Canada Learning Bond and the Additional Canada Education Savings Grant on behalf of an eligible child. This change will simplify the application process, ensuring that more children who are eligible for these benefits receive the support they need to help pursue post-secondary education.

Quote

"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

Quick Facts

• While take-up of the CLB has steadily increased from 0.2 percent in 2005 to 34.7 percent in 2016, two thirds of eligible children are not yet receiving this education savings incentive, representing approximately 1.8 million children across Canada.
• The Government of Canada is reviewing more than a hundred proposals in response to its recent Call for Concepts to Increase Awareness and Take-up of the Canada Learning Bond, which closed on January 16, 2018.
• $7 million will be awarded in support of successful projects over the next three years.

Associated Links

Canada Learning Bond
Registered Education Savings Plans

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Backgrounder

The Canada Learning Bond is money that the Government of Canada deposits directly in Registered Education Savings Plans for children from low-income families, born in 2004 or later, to help pay for their post-secondary education. The CLB 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 CLB.

To be eligible for the CLB, a child must be from a low-income family and:

• be born on or after January 1, 2004;
• be a resident of Canada;
• have a valid Social Insurance Number (SIN); and
• be named as a beneficiary to an RESP.

The child's primary caregiver (PCG) and, effective January 2018, the spouse or common-law partner of the PCG, can request the CLB on behalf of an eligible child. The PCG is the person who is eligible to receive the Canada Child Benefit in the child's name. The child's PCG 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 CLB.

SOURCE Employment and Social Development Canada