Canada Learning Bond
CANADA EDUCATION SAVINGS PROGRAM
The Government of Canada encourages Canadians to use Registered Education Savings Plans (RESP) to save for a child’s post-secondary education, which includes full- or part-time studies at a trade school, CEGEP, college, or university, or in an apprenticeship program.
Employment and Social Development Canada administers two education savings incentives linked to RESPs:
- The Canada Education Savings Grant consists of a basic grant of 20% on the first $2,500 in annual personal contributions to an RESP (this grant is available to all eligible Canadians regardless of their family income), as well as the additional amount of Canada Education Savings Grant, which is:
- 10% on the first $500 of annual personal contributions for children from families with an adjusted income between $46,605 and $93,208; or,
- 20% on the first $500 of annual personal contributions for children from families with an adjusted income of $46,605 or less.
The Canada Education Savings Grant is available until the calendar year in which the beneficiary turns 17, and the maximum lifetime amount, including the additional amount of Canada Education Savings Grant, is $7,200.
- The Canada Learning Bond is available for eligible Canadian children from low-income families born in 2004 or later and 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 Canada Learning Bond.
KEY PROGRAM OUTCOMES
- As of December 31, 2016, 51.1% of all eligible Canadian children had received the Canada Education Savings Grant in an RESP, and 34.7% had received the Canada Learning Bond.
- In 2016, the Government of Canada disbursed $884 million in Canada Education Savings Grant payments and $134 million in Canada Learning Bond payments in RESPs for beneficiaries, for a total of $1.02 billion.
- As of December 31, 2016, a total of $51.3 billion was held by Canadian families in RESP assets.
- In 2016, $3.56 billion was withdrawn from RESPs to help cover the costs of post-secondary education for 419,611 beneficiaries.
In Northwest Territory:
- As of December 2016, the participation rate in Northwest Territory (10.5%) was below the national participation rate (34.7%).
- Also as of December 2016, cumulative CLB payments reached approximately $0.40 million in Northwest Territory.
- In 2016, cumulative CLB payments reached $856 million. Cumulative number of children eligible, not receiving the CLB was 4,430 in Northwest Territory.