LONDON, ON, Feb. 21, 2025 /CNW/ - Ensuring every child has all the help they can get to pursue their education helps strengthen Canada's economy and its competitiveness on the global stage. The Government of Canada offers parents different ways to make post-secondary education more affordable and attainable for their children.

For the past 20 years, the Canada Learning Bond has helped students from low-income families pursue post-secondary education by providing up to $2,000 in a Registered Education Savings Plan (RESP). No personal contributions to an RESP are required to receive the Bond.

Today, the Minister of Employment, Workforce Development and Labour, Steven MacKinnon, announced that children born in or after 2024 who are eligible, will now be automatically enrolled to receive the Canada Learning Bond once they turn four years old if they have a valid SIN and do not already have their own RESP.

Parents and caregivers have started receiving letters from Employment and Social Development Canada providing information about automatic enrolment. More letters will go out later this year, informing them that the Government of Canada will open an RESP on their child's behalf if they don't already have one by the time they turn four years of age.

As a result of automatic enrolment, an additional 130,000 children will receive the Canada Learning Bond each year, beginning in 2028, to help pay for the cost of their studies after high school. The money can be used to help pay for an apprenticeship program, trade school, college or university. It can also be used to pay for expenses like rent, tuition, books, tools or transportation.

The Canada Learning Bond is retroactive. Eligible adults born in 2004 or later can receive the Bond until the day before they turn 21 by opening their own RESP. Starting in April 2028, the age limit to apply for the Bond will be extended from 20 to 30 years old to allow young adults to retroactively access the benefit for their post‑secondary education.

Quotes

"The Canada Learning Bond goes directly to children as an investment in their future. Whether their child wants to attend an apprenticeship program, trade school, college or university, easier access to the Canada Learning Bond will help more low-income families get the support they need to start planning early for their child's post-secondary journey and take advantage of interest that would allow their savings to grow substantially over time."
– Minister of Employment, Workforce Development and Labour, Steven MacKinnon

"Every year, many families miss out on government services or benefits they could receive because they don't know they exist, or the process is too complicated. By introducing automatic enrolment for the Canada Learning Bond, we are removing barriers to ensure more children have the financial support they need to pursue post-secondary education. No parent should have to navigate complex government websites to secure their child's future. This initiative makes access to education savings simple and automatic, putting opportunity within reach for every child."
– Minister of Citizens' Services, Terry Beech

"Investing in a child's education is one of the most important decisions a parent can make for their child's future. By helping Canadians invest early for their child's education, we are helping build a solid foundation that will provide greater opportunities for youth to pursue their passions, complete their studies and successfully transition from school to the workforce."
– Member of Parliament for London North Centre, Peter Fragiskatos

"The Canada Learning Bond is helping make education more accessible and fostering a more equitable society. Planning and investing early in your child's education can unlock a world of opportunities that can have a lasting impact on their academic success and social development."
– Member of Parliament for London West, Arielle Kayabaga

Quick facts

• Funds saved in an RESP can be used to pay for an apprenticeship program, trade school, college or university and for expenses like rent, tuition, books, tools or transportation.
• The Canadian government will automatically open an RESP for eligible children born in or after 2024, provided they have a valid SIN and are not already named as a beneficiary of an RESP by age four. This change will come into effect in 2028 for children turning four years old.
• As of 2023, 43.1% of those eligible received the Bond—meaning that 2.7 million children and youth across the country were eligible but did not receive the benefit.
• As of December 31, 2023, about two million children and young adults had received about $2 billion in funding through the Bond since 2004.

Associated links

• Registered Education Savings Plans and related benefits
• Canada Learning Bond amounts and eligibility criteria
• Budget 2024 – The Best Start for Every Child

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SOURCE Employment and Social Development Canada