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Additional Canada Education Savings Grant

The Canada Education Savings Grant is an allowance that the Government of Canada adds to a minor’s Registered Education Savings Plan from Heritage Education Funds. The Government grant is intended to make the child’s post-secondary education cheaper.

Additional CESG is free funding offered by the government to minors that live with low-income and middle-income caregivers. The additional funding is added to the minor’s RESP account to ensure that they receive the maximum amount of funding that the government can offer.

Additional Canada Education Savings Grant is money extended to a minor in addition to the funds offered through the basic CESG program. The basic CESG program specifies that the Canadian Government will contribute 20 percent of any heritage RESP contribution, up to a maximum of 500 dollars every year. Please note that both the basic and additional CESG programs can only extend up to a maximum of 7200 dollars in total.

With the basic CESG program, it is immaterial how much income a family makes; every beneficiary still qualifies for 20 percent of the total contributions. However, the Canadian Government provides additional funds depending on family income. As a matter of fact, most lower-income and middle-income families are not aware they can get additional free money.

The net income level for the additional CESG program applies to the minor’s primary caregiver and not the person who opened the account. Just as in the basic CESG program, grants offered by the additional CESG program can be utilized after secondary education to assist in paying for either part-time or full-time studies in CEGEP, accredited apprenticeship program, trade school, university, or college.

There are different net income levels that can qualify for additional CESG. The beneficiary can receive up to 20 percent of each dollar deposited for the initial 500 dollars. A caregiver with an income of up to 45,282 dollars can get an extra 20 percent grant of the initial 500 dollars deposited each year. This translates to a maximum grant of 100 dollars every year. When this figure is added to the basic CESG, the beneficiary stands to get an additional 600 dollars every year.

Caregivers with an annual income between 45,282 dollars and 90,563 dollars can get an extra 10 percent grant of the initial 500 dollars deposited each year. This translates to a maximum grant of 50 dollars every year. When this figure is added to the basic CESG, the beneficiary stands to get an additional 550 dollars every year.

Children in foster care are automatically eligible to receive 100 dollars annually. Family incomes are determined every year.
In order to qualify for the additional CESG program, a Registered Education Savings Heritage RESP Plan account has to be opened in the beneficiary’s name. An education savings plan is designed by the government of Canada to help people save for a minor’s post-secondary education. Through the RESP savings plan, caregivers can deposit 2500 dollars every year. The maximum amount that can be deposited to any single plan is, however, capped at 50,000 dollars.

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