Saving for Education Is Easy With The Canada Learning Bond

One of the main benefits of opening an RESP is that you can become eligible for a number of government grants and incentives. One such grant is the Canada Learning Bond. Below, we explain what the Canada Learning Bond is and how you can use it to invest in your child’s education with a Registered Education Savings Plan (RESP).

What is the Canada Learning Bond (CLB)?

The Canada Learning Bond (CLB) is a federally run program by the Canadian government that helps low-income families save for higher education. More specifically, if you are eligible for the CLB, you can receive money from the federal government through your Registered Education Savings Plan (RESP), which can then be put toward your child’s post-secondary education. A key part of understanding RESPs is understanding how the CLB might apply.

The Canada Learning Bond is a government initiative designed to support children from lower-income families in their pursuit of saving for higher education with a Registered Education Plan (RESP). It provides financial assistance to eligible families, helping to alleviate the financial burden associated with educational expenses. If your family is eligible for the Canada Learning Bond (CLB), you will receive a one-time initial payment of $500 to your child’s RESP with an additional $100 for each year of eligibility until your child reaches age 15.

We talk a lot about why investing in your child’s education with an RESP is so beneficial. However, the CLB is a unique benefit because eligible families can receive the CLB without contributing any money of their own.

Over time, this could add up to as much as $2,000 in grant money invested in your RESP, plus whatever income that investment generates over time. That is a great start to seeing your child successfully to a post-secondary education.

The money that you receive through the Canada Learning Bond can be used to help pay for a part-time or full-time program at any eligible postsecondary institution in Canada. This includes universities, colleges, trade schools, apprenticeships, and collège d’enseignement général et professionnel (CEGEPs).

How do you apply for a Canada Learning Bond?

To apply for a CLB follow these simple steps:

1. If you haven’t already, register the birth/adoption of your child and apply for a birth certificate
2. Apply for a Social Insurance Number (SIN) for the child. You can apply through this link for a SIN
3. Speak to one of our Education Savings Specialists about setting up an Embark Student Plan with a CLB

Once we receive your completed forms, we will apply for the CLB on your behalf. When your CLB application is approved, all grants will automatically be added to your RESP.

We’re here to make setting up and managing your RESP as easy as possible!

So how do you know if you qualify?

Eligibility for the Canada Learning Bond is dependent on your family income and the number of children you have. The chart below will help you determine whether you are eligible:

Required Documentation

To make sure your CLB application is processed smoothly, you or your RESP provider should have the following documents on hand:

• Social Insurance Number (SIN) for the child and parent/guardian.
• Birth certificate or citizenship documentation for the child.
• Proof of income for the parent/guardian.

So when should you apply for CLB?

You have up until your beneficiary turns 18 to apply for the Canada Learning Bond, but the earlier you apply, the sooner the grant money will start to grow in an RESP.

Don’t worry if you’ve already set up an RESP , but didn’t apply for the CLB right away, you can still do so. Your child is eligible for the CLB starting the year that they were born, or became a Canadian resident. If you did not apply for the CLB right away, the Canadian Government will still make payments for the previous years. All you need to do is to apply

Frequently Asked Questions about the CLB

How much money can I receive through the Canada Learning Bond?
Eligible children can receive up to $2,000, including an initial deposit of $500.

Can I apply for the Canada Learning Bond for multiple children?
Yes, CLB can be accessed for each eligible child in the family.

Do I need to repay the Canada Learning Bond?
No, CLB funds do not need to be repaid.

What happens to the Canada Learning Bond if my child doesn’t pursue post-secondary education?
The CLB funds can be transferred to other eligible beneficiaries, if they are a part of a family plan. You can find more information on what happens to your grant money and the contributed savings in an RESP if it is not used here.

Can I use the Canada Learning Bond for expenses other than education?
CLB funds are specifically designated to pay for educational expenses.

How can I track the growth of my Canada Learning Bond funds?
You can monitor how your CLB contributions, deposits you made, and your compound growth increase over time through your personal Embark Student Plan digital platform.

Similar to how there are so many RESP benefits, there are also a ton of benefits of the Canada Learning Bond. Given that attending post-secondary school in Canada doesn’t come cheap, taking advantage of all financial incentives available to you is so important. So in case you’re looking for even more reasons to apply for the CLB, keep reading.

Financial assistance for your child’s education

The most obvious benefit of the Canada Learning Bond is that it provides financial assistance for your child’s education. In qualifying for the CLB, you will receive up to $2,000 per eligible child. This money is completely free of charge and doesn’t have to be paid back. In essence, is $2,000 in your pocket that you can put toward your child’s tuition fees, accommodation fees, textbooks, and more.

Investment in your child’s future

We like to think of the Canada Learning Bond, and RESPs in general, as an investment in your child’s future. By opening an RESP, whether you qualify for the CLB or not, you will be investing in your child’s future. You will be giving the contributions you make a chance to grow in order to maximize the amount of money you have for your child’s education. And worst case, if your RESP is not used, you can transfer the money or close the account.

Positive impact on your child’s long-term educational success

Finally, when you take advantage of the Canada Learning Bond through your RESP, you will be making a positive impact on your child’s long-term educational success. How? The CLB translates to more money in your RESP, which means more money that you can put toward your child’s education. The more funds you have, the more educational opportunities your child has. Trade school, college, or university may all be within reach if you start early and open an RESP.

Understanding Canada Learning Bond Contributions

If you qualify for the Canada Learning Bond, then you need to know what to expect in terms of contributions. We’re talking about both contribution amounts and the frequency of contributions.

The contribution amount for the Canada Learning Bond maxes out at $2,000 per child. This means that the lifetime limit for the CLB is $2,000. However, you won’t receive this $2,000 in one lump sum payment.

Instead, if you qualify for the CLB, you will receive $500 in the first year and $100 in subsequent years, up until your child turns 15 years of age.

Therefore, the frequency of CLB contributions is typically annual. However, an annual contribution isn’t guaranteed because the CLB is linked to a family’s income level. If your income level fluctuates and rises above the maximum threshold, then you will not receive a CLB payment that year. Only when your family’s income level falls below the maximum threshold once again will you start receiving your annual payment.

One last word on Canada Learning Bond contributions – you are not required to make annual contributions to your RESP in order to receive the CLB.