The Canada Learning Bond (CLB) is a financial assistance initiative by the Government of Canada aimed at aiding low-income families in saving for their children’s post-secondary education expenses.
As a Canadian parent or caregiver, you can receive $500 to $2000 in your children’s Registered Education Savings Plan (RESP) to save on university education expenses.
If you want to know more about the CLB, how to qualify and apply, and how to maximise your benefits, this article provides a comprehensive overview of the Canada Learning Bond.
Continue reading to gain a thorough understanding of this valuable educational benefit.
What is Canada Learning Bond?
The Canada Learning Bond is a financial assistance program provided by the Canadian Government to help eligible low to moderate-income families.
Administered by the Employment and Social Development Canada (ESDC), the CLB offers an extra incentive of up to $2,000 to assist families in kickstarting early savings for their child’s post-secondary education after high school.
This assistance is channelled through the child’s Registered Education Savings Plan (RESP), and there’s no need for families to make their own financial contributions.
The goal is to make it easier for families to support their children’s education, whether they’re pursuing full- or part-time studies at apprenticeship programs, trade schools, CEGEPs, colleges, or universities. Parents, public caregivers, and even young Canadians aged 18 can apply for this program.
CLB Benefit Amount
If the beneficiary qualifies for the Canada Learning Bond (CLB), they could initially receive $500 in the first year, followed by an additional $100 for each eligible year thereafter until age 15. This accumulation continues, resulting in a potential lifetime maximum of $2,000 deposited into their RESP.
Additionally, parents or caregivers can also claim benefits for all the years the child was eligible for the CLB before the application.
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CLB Eligibility Requirements
To receive the Canada Learning Bond, the child must be:
- From a low-income family
- Born on or after January 1, 2004
- A Canadian resident
- Have a valid Social Insurance Number (SIN)
- Named in an RESP
In addition, the primary caregiver of the child must:
- be eligible to receive the Canada Child Benefit (CCB)
- have filed income tax returns for each year they wish to request the CLB for the child
However, it is important to note that eligibility for the CLB is based on how many qualified children you have in the family and the adjusted income of the primary caregiver and the cohabiting spouse or common-law partner.
Canada Learning Bond Application Process
To apply for the Canada Learning Bond, you must follow these steps to complete your Canada Learning Bond application:
Step 1: Gather Your Information
You will be required to present the following during the application:
- A Social Insurance Number (SIN) for the subscriber or the Business Number of the agency if they are a child in care
- A Social Insurance Number (SIN) for the child
- If the subscriber isn’t the child’s primary caregiver, their Social Insurance Number (SIN) will also be needed.
Ensure you have them ready before requesting the CLB.
Step 2: Contact a Participating RESP Promoter to Open an RESP
You must open an RESP for your child before applying for the Canada Learning Bond. You don’t need a bank account to open an RESP.
Contact any of the participating RESP promoters and open an RESP for your child.
Contact your RESP promoter if your child is named as the beneficiary of an RESP and is not receiving the Canada Learning Bond.
Step 3: Check That The CLB is Deposited in the RESP
Once your application is approved, the Canada Learning Bond will be automatically deposited in the child’s RESP for every year they are eligible.
What Happens After You Apply?
Your CLB application will take a few months to process, and once approved, you will receive the initial $500 deposit into the RESP and $100 for every year your child is available.
However, if your child doesn’t continue their education after high school, and the RESP is closed, any RESP contributions will return to the subscriber, and the CLB will return to the Government of Canada.
Any interest accumulated in the RESP will be returned to the subscriber, transferred to an RRSP of the subscriber, or gifted to a designated educational institution.
Canada Education Savings Grant (CESG)
The CESG is another way to get more money for your child’s education. The CESG is available to eligible Canadian families who open an RESP and have made any personal contributions to their Child’s RESP.
There is no minimum contribution limit. The Canadian government matched 20% of your annual contribution up to a lifetime maximum of $7,200 for every child. However, if you over-contribute to your RESP, you might not receive the CESG
Like the CLB, the CESG is also deposited directly to the child’s RESP.
Final Thoughts on Canada Learning Bond
The Canada Learning Bond is a benefit from the Government of Canada. It was created to help low-income families afford post-secondary education-related expenses for their children.
You should take advantage of this benefit if you are eligible. Also, check out other benefits available to Canadians, like the CESG. They can help lighten the burden of your child’s educational expenses.
If you have any questions about the CLB, you can drop them in the comment section.
FAQs on Canada Learning Bond
Do you have to pay back Canada Learning Bond?
The CLB is a grant and doesn’t need to be paid back to the government. However, you may have to repay the grant if your child fails to attend post-secondary education and the RESP is closed.
How long does the Canada Learning Bond take?
When you apply for the CLB, it may take up to two months for your application to process and be approved.
Is the Canada Learning Bond automatic?
No. The CLB isn’t automatic. You need to do it as soon as you turn 18 or before the day you turn 21.
