The Canada Learning Bond (CLB) is a government program that provides up to $2,000 per child to help encourage low-income families to begin saving for their child or children’s post-secondary education. These funds are paid into a Registered Education Savings Plan (RESP) but personal contributions aren’t required in order to qualify for these CLB payments.
It was in 2004 that the concept of the CLB was introduced as a way to encourage low-income families to save for educational purposes. As of 2022, 4.1 million Canadian children were eligible for CLB support, but only about 1.7 million have applied, been approved, and are receiving these funds.
To make sure that you and your family don’t miss out on these generous and helpful funds, it’s important to understand how the CLB works. Our in-depth guide to the CLB will help you understand the concept, eligibility requirements, application process, and more.
Key Takeaways
- The CLB provides up to $2,000 per child into an RESP to help with post-secondary education costs.
- Families must meet household income thresholds between $50,197 and $95,429 in order to qualify for CLB.
- The CLB is retroactive, accumulating for eligible beneficiaries until the end of the year they turn 15.
Requirements for CLB eligibility
The Canadian Learning Bond eligibility requirements are mostly based on family income and the number of children within the household. To be more specific, the CLB is only for those who:
- are a resident of Canada,
- have a valid Social Insurance Number (SIN),
- come from a low-income family,
- are eligible for the Canada Child Benefit,
- were born on or after January 1, 2004, and
- are the beneficiary of an RESP.
Of course, the term “low-income family” can be subjective, so there are also guidelines to define these parameters. The table below shows the Canada Learning Bond income threshold for families, based on the number of children within the household.
| Number of children | Adjusted net family income |
|---|---|
| 1, 2, or 3 | Less than or equal to $50,197 |
| 4 | Less than $56,636 |
| 5 | Less than $63,101 |
Since it’s likely that a family with 5+ children will have a harder time paying for post-secondary education than those with just 1, 2, or 3 children, the income requirements are significantly different.
For information on income thresholds for families with more than 5 children, you’ll have to speak with a program representative over the phone – you can find the contact information here, on the “Registered Education Savings Plans and related benefits” page.
The CLB is also retroactive. It continues to accumulate on an annual basis until the end of the year the eligible recipient turns 15.
What can it be used for?
The guidelines state that CLB funding can only be used for specific types of post-secondary education, including:
- apprenticeship programs and trade schools,
- CEGEPs,
- colleges, and
- universities.
This is a short list but it does cover the majority of established and popular educational establishments in Canada. Of course, the CLB likely won’t cover the entirety of your tuition costs at any of these places, but it will certainly help.
If you’re new to Canada or just not familiar with the term, CEGEP is a French acronym that, when translated, stands for College of General and Professional Teaching. Students in Quebec finish high school in Grade 11 and if they choose to remain in Quebec can continue their education at a CEGEP for 2 more years.
How much is the Canada Learning Bond?
The Canada Learning Bond can provide up to $2,000 to be used for post-secondary education. The amount will be directly deposited into your RESP each year that your child remains eligible, but the exact yearly amount could be different.
| Time period | Deposit amount |
|---|---|
| First year | $500 + $25 |
| Following years | $100 |
| Lifetime | $2,000 |
As the table shows, you’ll receive $500 in the first year that you receive CLB funding for your child. Plus, you’ll receive an extra $25 to help cover any costs associated with opening an RESP.
After the first year, you’ll receive a $100 deposit each year that your child remains eligible, usually in August. This will continue until the lifetime maximum of $2,000 is reached (per child/beneficiary), or until your child turns 15 years old.
Returning the CLB – something to be aware of
As we’ll discuss later, you’ll need to open an RESP in order to receive the CLB payments for your child – and RESPs can only stay open for a max of 35 years. If you make it to this point and your child has decided not to pursue any post-secondary education, all CLB funds will be returned to the government.
This is definitely a detail you’ll want to keep in mind as your child enters adulthood.
When and how to apply
Once you’ve established that you fit the Canada Learning Bond eligibility criteria, you’ll be pleased to know that you actually have lots of time to apply – in fact, you can apply any time before your child turns 21 years old. Although the earlier you open one, the more time the funds have to earn interest and grow.
Before you can start applying, though, there are a few basic steps to take care of:
- Be sure to register the birth or adoption of your child.
- Fill out and send an application for a birth certificate for your child.
- Fill out and send an application for a SIN for your child.
These are necessary as you’ll need the associated documents in order to complete the Canada Learning Bond application. Once you have them on hand, you can follow these further steps to finish applying for the CLB:
- make sure your income tax returns are up to date,
- open an RESP for your child, being careful to choose one that specifically states it can handle a CLB, and
- fill out the accompanying forms to apply for the CLB.
A Registered Education Savings Plan, or RESP, is a registered account where you can save for your child or children’s education and have your funds grow tax-free. They can be set up through most financial institutions, whether it be a bank, credit union, or perhaps an online brokerage. You can hold a variety of investments within this account, like stocks, GICs, and bonds – and the Canada Learning Bond.
Typically, when you first open an RESP, you’ll be given the opportunity to fill out an application for CLB. With Questrade, however, an application for CLB will automatically be made for you.
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$25 GeniusCash + $50 bonus for funding a new account, and $0 commissions on stocks & ETFsWill you apply for the Canada Learning Bond?
The Canada Learning Bond is a valuable resource from the government that can help kickstart your education savings plan for your kids. It likely won’t cover all of your child’s financial requirements at school, but it will certainly help.
Are you planning to apply for the CLB, or have you done so already? What was the application experience like for you?
We love hearing from our readers, so please leave us a note in the comments section below and let us know your thoughts.
FAQ
What is a Canada Learning Bond?
The Canada Learning Bond is a government program that provides a sort of financial incentive to help low-income families begin saving for their child or children’s education. It’s to be used for post-secondary education as part of an apprenticeship program, at a trade school, CEGEP, college, or university.
Where can I find a Canada Learning Bond application?
Typically, you’ll be provided with an application for the Canadian Learning Bond when you open an RESP account. You can open an RESP through most banks and credit unions, or you can use an online brokerage.
What are the Canada Learning Bond eligibility requirements?
For a child to be eligible for the CLB, you’ll need to be a resident of Canada with a valid SIN who was born after January 1, 2004. The CLB is only for those from low-income families, so there are specific family income thresholds to consider as well.
When is the Canada Learning Bond paid out?
You’ll receive the initial payment once your CLB application has been approved, which could be a few months after the application is submitted. After that, you’ll receive the $100 annual payment each year that your child remains eligible, up until they turn 15 years old or the lifetime maximum of $2,000 is reached. These payments are usually made in August.
Why do I need a Registered Education Savings plan?
An RESP is a valuable tool to help you save for your child’s post-secondary education. You also need an RESP if you want to apply for benefits like the Canada Learning Bond or Canada Education Savings Grant. Any funds held in an RESP can be used to pay for things like post-secondary school tuition, books, rent, and more.
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