Missing out on tuition help ?
Six years after the launch of the Canada Learning Bond, the families of only 212,000 children, or 19 per cent of those eligible, have taken advantage of the benefit.
Only one in five low-income families in Canada has taken up the federal government's offer of free money for their children's post-secondary education, shows a study released in December by Toronto's Omega Foundation.
Six years after the launch of the Canada Learning Bond, the families of only 212,000 children, or 19 per cent of those eligible, have taken advantage of the benefit. Through the learning bond, Ottawa contributes a maximum of $2,000 to a low-income child's tax-sheltered registered education savings plan (RESP).
Yet as of 2009, more than 880,000 children had not claimed the bond they were entitled to.
“The federal program is benefiting the high-income families, when the low-income families can benefit from it most,” said May Wong, Omega's executive director and a report co-author. “The money can make a big difference in their children's academic aspirations.”
To receive the learning bond, families have to have a child born Jan. 1, 2004, or after, and an after-tax household income under $40,970 a year. Then, it is necessary to start an RESP account with a licensed RESP provider where the government can deposit the money. Parents and child also need to have a social insurance number.
A previous survey, published in 2008 by EKOS, showed that only one in 10 low-income families had heard of the free learning bond, and only 83 per cent had heard of RESPs in general.
The report attributes this gap, especially among immigrants, to the lack of multilingual information, and to the ignorance of community workers about the RESP.
Nasrin Khatam, originally from Iran, learned about the RESP only when she was approached by a sales representative of a private scholarship fund at a mall. “He told me how much the money would grow but didn't say anything about the processing fees and investment risks,” said the Toronto graphic designer, who had to pay a large penalty for stopping payments to her son's scholarship fund after being laid off in 2008.
But, overall, RESPs can be a solid investment in your children's educational future, as the federal government provides a payment of at least 20 per cent of the total annual contributions you make to the RESP, up to $2,500 per child, through something called the Canada Education Savings Grant (CESG). The CESG's lifetime limit per child is $7,200.
Find out more information on the Canada Learning Bond, RESPs and more at canlearn.ca.
Six years after the launch of the Canada Learning Bond, the families of only 212,000 children, or 19 per cent of those eligible, have taken advantage of the benefit.
Only one in five low-income families in Canada has taken up the federal government's offer of free money for their children's post-secondary education, shows a study released in December by Toronto's Omega Foundation.
Six years after the launch of the Canada Learning Bond, the families of only 212,000 children, or 19 per cent of those eligible, have taken advantage of the benefit. Through the learning bond, Ottawa contributes a maximum of $2,000 to a low-income child's tax-sheltered registered education savings plan (RESP).
Yet as of 2009, more than 880,000 children had not claimed the bond they were entitled to.
“The federal program is benefiting the high-income families, when the low-income families can benefit from it most,” said May Wong, Omega's executive director and a report co-author. “The money can make a big difference in their children's academic aspirations.”
To receive the learning bond, families have to have a child born Jan. 1, 2004, or after, and an after-tax household income under $40,970 a year. Then, it is necessary to start an RESP account with a licensed RESP provider where the government can deposit the money. Parents and child also need to have a social insurance number.
A previous survey, published in 2008 by EKOS, showed that only one in 10 low-income families had heard of the free learning bond, and only 83 per cent had heard of RESPs in general.
The report attributes this gap, especially among immigrants, to the lack of multilingual information, and to the ignorance of community workers about the RESP.
Nasrin Khatam, originally from Iran, learned about the RESP only when she was approached by a sales representative of a private scholarship fund at a mall. “He told me how much the money would grow but didn't say anything about the processing fees and investment risks,” said the Toronto graphic designer, who had to pay a large penalty for stopping payments to her son's scholarship fund after being laid off in 2008.
But, overall, RESPs can be a solid investment in your children's educational future, as the federal government provides a payment of at least 20 per cent of the total annual contributions you make to the RESP, up to $2,500 per child, through something called the Canada Education Savings Grant (CESG). The CESG's lifetime limit per child is $7,200.
Find out more information on the Canada Learning Bond, RESPs and more at canlearn.ca.
