Canada Learning Bond

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The Canada Learning Bond (CLB) is a grant offered by the Government of Canada to help parents, friends, and family members save early for the post-secondary education of children in modest-income families.

Beyond the Canadian Education Savings Grant (CESG), Employment and Social Development Canada (ESDC) provides an additional incentive of up to $2,000 to help modest‑income families start saving early for their child's education after high school (post‑secondary education). The Canada Learning Bond (CLB)[1] money will be deposited directly into the child's Registered Education Savings Plan (RESP).

Eligibility

The Canada Learning Bond is available to children:[3]

  • born on or after January 1, 2004;
  • who are residents of Canada;
  • who have a valid Social Insurance Number; and
  • who are from low-income families.

Children in care, for whom a Children's Special Allowance is payable, automatically qualify for the Canada Learning Bond.

What is modest-income

Beginning July 1, 2017, eligibility for the Canada Learning Bond is based on the number of qualified children and the adjusted net family income.[4]

  • Families with up to three children can qualify for the CLB if their adjusted net family income is less than the lowest income tax threshold, less than or equal to $45,916 in 2017.
  • Families with more than three children can qualify for the CLB if the adjusted net family income is less than the amount determined by the formula.

You can qualify with a higher adjusted net family income when you have more than 3 children. See Determing eligibility for the CLB.

Historic information

For years prior to July 1, 2016, a child was eligible for the Canada Learning Bond if the primary caregiver was in receipt of the National Child Benefit Supplement (NCBS) for the child.

From July 1, 2016, to June 30, 2017, a child was eligible for the Canada Learning Bond if the primary caregiver would have otherwise been in receipt of the NCBS for the child, had it continued to be paid for that period.

How much can I receive

For families with modest-income, the CLB will provide:

  • an initial $500 to children born on or after January 1, 2004.
  • Thereafter the CLB will also pay an additional $100 annually for up to 15 years for each year the family has modest-income.

To help cover the cost of opening an RESP for the child, ESDC will pay an extra $25 with the first $500 bond.

A child can get the Canada Learning Bond in an RESP even if you do not contribute any money to the plan.[5]

If the beneficiary does not pursue post‑secondary education, the CLB is returned to the Government of Canada.

Who should apply

The primary caregiver (the person who is responsible for the care and upbringing of the child) can apply for the Canada Learning Bond on behalf of the child. This is the person who is eligible to receive the Canada Child Benefit in the child’s name. In many cases, the mother is considered the primary caregiver.[3]

If you don’t qualify for CLB, you can still apply and receive CLB in the future if your situation changes.

How to apply

You must open a Registered Education Savings Plan (RESP), through an RESP provider, before you can apply for the Canada Learning Bond on behalf of a child.[6]

Not all RESP providers offer the Canada Learning Bond, so make sure that your provider does.

Once your application is approved, the Government of Canada will directly deposit the Canada Learning Bond into the RESP every year that the child is eligible.

References

  1. Employment and Social Development Canada, Canada Learning Bond (CLB), viewed July 28, 2017.
  2. Employment and Social Development Canada,Canada Learning Bond summary statistics by province and territory, viewed July 28, 2017.
  3. 3.0 3.1 Employment and Social Development Canada, Canada Learning Bond (CLB) - Eligibility, viewed July 28, 2017.
  4. Employment and Social Development Canada, Canada Learning Bond (CLB) eligibility criteria amendments, viewed July 28, 2017.
  5. Employment and Social Development Canada, Canada Learning Bond – How much could a child receive?, viewed July 28, 2017.
  6. Employment and Social Development Canada, Canada Learning Bond - Apply, viewed July 28, 2017.

External links