Amendments to Eligibility Requirements For The Canada Learning Bond
The Canada Learning Bond (CLB) is a government grant to help lower income families save for their child’s post-secondary education. Qualifying for the grant provides your child with access to $500 at birth and an additional $25 to cover the costs of opening an RESP. Based on your income tax return, an additional $100 will be deposited in the RESP until your child turns 15. This can add up to more than $2000 in grants.
National Child Benefit Supplement (NCBS) and other family benefits were replaced with the Canada Child Benefit in July 2016. Since NCBS was used to determine eligibility for the Canada Learning Bond, new CLB criteria have been introduced that take effect on July 1, 2017. The good news is, since the formulas are similar, there is no significant change in the number of children who will qualify.
Here is what is new – starting July 1, 2017:
- 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.
- 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.
Adjusted net family income levels and number children for the 2017-2018 benefit year are:
|No. of children||Adjusted net family income 2017|
|1 to 3||Less than or equal to $45,916|
|4||Less than $51,809|
|5||Less than $57,724|
|6||Less than $63,640|
|7||Less than $69,556|
|8||Less than $75,472|
Other qualification factors:
- Your child must be born after December 31st, 2003
- You don’t have to make contributions to RESPs to qualify
- If you don’t qualify for CLB, you can still apply and receive CLB in the future if your situation changes
Have you applied?
Each year, more eligible children are receiving CLB however, 67% of eligible families have yet take advantage of this savings program. According to the 2015 CESP Annual Statistical Review by Employment and Social Development Canada:
- As of Dec 31, 2015, provincial and territorial cumulative statistics found that 830,735 of the 2.5 million eligible children (33.1%) have received the CLB incentive.
- In 2015, annual CLB payments increased by about 10% compared to 2014. 480,000 children received the CLB in the same year, an increase of 11.5% over 2014.
Learn more about growing savings with grants.