January 2007 ISSUE
More Students Eligible for Alberta Centennial Education Savings Grants
As the cost of post-secondary education rises and this trend is expected
to continue, the federal and provincial governments are encouraging parents to
open savings programs for their children’s future education.
In recognition of the importance of education, both governments are supporting individual Registered Education Savings Plans with financial grants.
The federal government tops up your annual RESP contribution by 20 per cent on the first $2,000 contributed, up to $400 a year per eligible child. The enhanced Alberta Centennial Education Savings Grant program provides an additional top up if your family net income is less than $71,190.
Last year the Alberta Government introduced its Centennial plan. Qualifying children born in 2005 and beyond are entitled to a one-time government contribution of $500 to a child’s RESP. Subsequent grants of $100 may be available to qualifying Alberta children at age eight, 11 and 14, provided a matching contribution of $100 is made into the child’s RESP in the year prior to the application for the grant.
Recently an amendment to Bill 54 has been passed and effective Jan. 1, all Alberta children who have attained the age of eight, 11 or 14 on or after Jan. 1, 2005, will be eligible to apply for the Alberta Centennial Education Savings Plan $100 grant.
For more specific information on APEGGA-endorsed RESP and supporting government programs, click below:
www.heritageresp.com/content/education_resp_apegga.asp