| Government Grants |
Helping more families save for their children's post-secondary educationIn 2004, Canadian Scholarship Trust Foundation actively participated in discussions with the federal and Alberta governments that led to the introduction of the Canada Learning Bond, additions to the Canada Education Savings Grant, and the Alberta Centennial Education Savings Plan. These incentives are designed to assist families with saving for their children's post-secondary education. Canada Learning Bond1. What is the Canada Learning Bond (CLB)?The CLB is a grant from the federal government of up to $2,000 for post-secondary education of children in lower income* families. The grant is paid into an RESP, such as the Canadian Scholarship Trust Plan. (*Income levels are indexed to keep pace with inflation and are revised annually by CRA.) 2. Who can get the CLB?Canadian children born January 1, 2004 or later who are eligible for the National Child Benefit Supplement (NCBS). This generally applies to families with a total annual income under $37,178. 3. How is the total annual income determined?It is the combined net income of the primary caregiver and the spouse of the primary caregiver of the child. 4. What do families get?An initial $500 will be provided in the first year of eligibility for the CLB. Children are also eligible to receive up to 15 additional $100 grants, one for each year the family qualifies for the NCBS until the year the child turns 15. 5. How does it work?The CLB will be paid into your Canadian Scholarship Trust Plan RESP. It will be invested along with any RESP contributions that you make, and will earn and accumulate investment income inside your RESP. As your RESP administrator, we will manage the assets of your grant and interest earned, and will provide you with account balance updates. 6. How will my child receive the CLB?When your child enrolls in a qualifying post-secondary institution, the CLB will be paid to your child from the RESP as Education Assistance Payments (EAPs). EAPs will include, among other components, the CLB, interest earned on the CLB and interest earned on any additional contributions that you put into the RESP. EAPs are taxable in the student's name. Since students usually have a lower income, little or no tax will be payable on the EAP. Your contributions will be returned to you tax-free. 7. What happens if my child does not attend a post-secondary institution?
8. Can I transfer the CLB to another child?No, the federal government will not allow the CLB to be transferred from one child to another. 9. How do I apply for the CLB?An application form will need to be completed by the child's primary caregiver, directing the CLB to be placed into your RESP. Use one of the links below to review and download a copy of the application form:
Additional Canada Education Savings Grant1. What is the additional Canada Education Savings Grant (CESG)?The additional CESG is the same as the regular CESG, except the federal government will increase its 20% matching rate on the first $500 of eligible RESP contributions each year for families who qualify. The grant is paid into an RESP, such as the Canadian Scholarship Trust Plan. 2. When does it take effect?It applies to RESP contributions made on or after January 1, 2005. 3. Who qualifies for the additional CESG?Families with a total annual income below $74,357 qualify. Total family income is defined as the combined net income of the primary caregiver and the spouse of the primary caregiver of the child. 4. What do families get?
5. What are eligible contributions?Eligible contributions refer to your contributions that you put into an RESP. They do not include other government grants such as the Canada Learning Bond or Alberta Centennial Educations Savings Plan. For example, you may qualify for and receive both the CLB and additional CESG, however, the CESG matching rate will only be applied to your personal contributions that you put towards your child's RESP. 6. What if my family income is over $74,357?For families with a total annual income over $74,357, the regular CESG matching rate remains unchanged at 20% on all eligible RESP contributions, up to $2,000 per year for each child. This could add up to $400 in CESG per year, up to $7,200 over the life of your RESP for each child. 7. How will my child receive the CESG?When your child enrolls in a qualifying post-secondary institution, the CESG will be paid to your child from the RESP as Education Assistance Payments (EAPs). EAPs will include, among other components, the CESG, interest earned on the CESG and interest earned on your eligible contributions. EAPs are taxable in the student's name. Since students usually have a lower income, little or no tax will be payable on the EAP. Your eligible contributions (your principal) will be returned to you tax-free. 8. What happens if my child does not attend a post-secondary institution?You have three options:
9. How do I apply for the additional CESG or basic CESG?You will need to complete an application form directing the CESG to be placed into your RESP. Use one of the links below to review and download a copy of the application form:
10. Does the carry-forward provision apply to the additional CESG?No. The government does not allow you to carry forward any unused CESG grant room from one year to the next for the additional CESG. Therefore, if you qualify, it is very important to apply for the additional CESG today! The longer you wait, the more CESG you will lose. You do not want to miss out on this benefit and lose government grant money that you are entitled to receive. The Alberta Centennial Education Savings Plan1. What is the Alberta Centennial Education Savings Plan (ACES)?ACES is a grant from the Alberta government of up to $800 to encourage families to save for their children's post-secondary education. The grant is paid into an RESP, such as the Canadian Scholarship Trust Plan. 2. Who can get the ACES grant?The ACES grant is available to all children born to or adopted by Alberta residents . Families who reside in Alberta at the time of applying for the ACES grant are eligible, regardless of family income. 3. What do families get?The Alberta government will provide an initial ACES grant of $500 for children born to or adopted by Alberta residents on or after January 1, 2005. Three subsequent ACES grants of $100 each will be available to children enrolled in school in Alberta who turn 8, 11 and 14 on or after January 1, 2005 4. How does it work?The ACES grant will be paid into your Canadian Scholarship Trust Plan RESP. It will be invested along with any additional RESP contributions that you make, and will earn and accumulate investment income inside your RESP. As your RESP administrator, we will manage and track your grant and interest earned, and will provide you with account balance updates. 5. How will my child receive the ACES grant?When your child enrolls in a qualifying post-secondary institution, the ACES grant will be paid to your child from the RESP as Education Assistance Payments (EAPs). EAPs will include, among other components, the ACES grant, interest earned on the ACES grant and interest earned on any additional contributions that you put into the RESP. EAPs are taxable in the student's name. Since students usually have a lower income, little or no tax will be payable on the EAP. Your contributions will be returned to you tax-free. 6. What happens if my child does not attend a post-secondary institution?
7. Can I transfer the ACES grant to another child?Yes. The grant can be transferred to a sibling of your child. 8. How do I apply for the ACES grant?You will need to complete an application form directing the ACES to be placed into your RESP. Use the links below to review and download a copy of the application form:
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