Written by: Kaleido
Are you familiar with the Canada Learning Bond (CLB)? This little-known grant provides low-income families with up to $2,000 in a Registered Education Savings Plan (RESP) to fund a child’s post-secondary education. Are you already at the post-secondary level and just now learning about the CLB? Good news: If you qualify, it’s not too late to receive this education funding! You may be able to get the CLB retroactively even if you are 18, 19 or 20 years old.
The Canada Learning Bond is a grant offered by the Government of Canada to low-income families to encourage saving for post-secondary education. This financial assistance is intended for parents of young children, and also for young adults aged 18 to 20, under certain conditions:
Depending on your family situation, you could get up to $2,000.1 The CLB is calculated over the first 15 years of your life. It will be $500 for the first year, followed by $100 per year of eligibility up to the year you turn 15, for a maximum total of $2,000.
If you are between the ages of 18 and 20 and meet the eligibility criteria, all you need to do to get the CLB is open an RESP. At Kaleido, it’s as simple as that! No RESP contributions are required to receive this grant,2 and we will make the grant application for you. The amount you are entitled to will be based on your number of years of eligibility and will be deposited directly into your RESP. If you are under 18, your parents can open an RESP with you as beneficiary to receive the CLB on your behalf.
The CLB money will be available for withdrawal from the RESP as soon as it is received to pay for full-time or part-time post-secondary education at an eligible educational institution, such as a CÉGEP, trade school, college or university. Withdrawals can be used to pay all education-related expenses. In addition to tuition fees, the money can be used for school supplies, rent, transportation and so on. If you are pursuing post-secondary studies, this is a great help!
When you are ready to withdraw money from your RESP, just apply for an educational assistance payment (EAP) and provide proof of enrolment in an eligible program.
Not expecting to need financial assistance right away? You can also keep the RESP open and withdraw the funds later.
At Kaleido, we offer young adults the option of opening an RESP so that they can receive the Canada Learning Bond and other grants they are entitled to without having to make contributions. There are no subscription charges, and no minimum or recurring contributions are required.2 It would be a shame not to take advantage of this opportunity!