Canada Learning Bond

For children born after 2003, whose family is entitled to the National Child Benefit, the government will provide a Canada Learning Bond. The Bond will be $500 in the first year of entitlement and $100 for each subsequent year of entitlement until the child turns 15. The first year of entitlement for the Bond can be any year up to age 15, depending on which year the family is first entitled to the National Child Benefit. The Bond can be transferred into a Registered Education Savings Plan (RESP) of which the child is the beneficiary at any time before the child reaches 18 years of age. When making the first payment of a Bond into a RESP, the government will contribute an additional $25 to cover administration costs.

Canada Education Savings Grant

The government currently provides a $20 grant for every $100 contributed to a RESP, subject to a maximum. Effective in 2005 this 20% grant will be doubled to 40% for the first $500 contributed to a RESP by families with incomes up to $35,000. For families with incomes between $35,000 and $70,000 the grant will be increased to 30% for the first $500 contributed to a RESP. There is no carry-forward of unused access to the enhanced matching rates, thereby limiting matching to a maximum of $500 in RESP contributions in any given year.

Post-Secondary Education Grants

Effective with the 2005-06 school year, eligible first-year post-secondary students from low income families will qualify for a grant equal to one-half the cost of tuition, to a maximum of $3,000.

Also effective with the 2005-06 school year, disabled students who are eligible for post-secondary student loans will receive an additional up-front grant of up to $2,000.

Canada Student Loans

Beginning with the 2005-06 school year, the federal ceiling for student loans will be increased from $165 per week to $210 per week.

To increase eligibility for student loans, the parental contribution expected from middle-income families will be reduced.

To assist with the repayment of student loans, the income thresholds used to determine eligibility for interest relief will be increased by 5%.

For borrowers who remain in financial difficulty after the application of interest relief, the maximum amount of debt reduction will be increased to $26,000 from $20,000.