Alberta's education savings incentive boosts RESPs at one-year anniversary

Significant enrolment in ACES through Canadian Scholarship Trust
Foundation

TORONTO, Jan. 31 /CNW/ - More Alberta parents are starting a Registered
Education Savings Plan (RESP) for their newborns as a result of the Alberta
Centennial Education Savings Plan (ACES), reports Canadian Scholarship Trust
Foundation, Canada's oldest and largest RESP provider, at the one year
anniversary of the ACES program.

In 2005, close to 1,600 newborns in Alberta were eligible for the ACES
grant through enrolment in a Canadian Scholarship Trust Plan - a 29 per cent
jump from 2004. Through these grants, the Alberta government contributed close
to $800,000 towards the newborns' higher education.

"The ACES plan is an incredible opportunity for parents to supplement an
RESP. Every dollar put towards a child's education will make a difference,"
said Peter Lewis, Vice President, Canadian Scholarship Trust Foundation.
"Saving for a child's education, regardless of the amount, increases the
probability of a child going on to higher education. By investing in an RESP,
parents are communicating a very strong message about the value of pursuing
higher education."

In January 2005, new parents in Alberta were given a helping hand in
starting to save for their child's post-secondary education under the ACES
plan. Children born in Alberta in 2005 and beyond are eligible for $800 in
grants. Parents receive an initial $500 to kick start their RESP, with an
additional $100 for children enrolled in school in Alberta when they reach the
ages of 8, 11 and 14.

Under a legislative amendment passed in the fall of 2005, any 8, 11 or 14
year old Alberta student can receive the $100 grant, even if they were born
before 2005, provided parents invest at least $100 in an RESP before applying
for the grant.

The Alberta government has noted that approximately 120,000 children born
prior to January 1, 2005 will be eligible for the $100 supplemental grant when
they turn 8, 11 and 14 years of age.

Alberta is the first province to offer a post-secondary education savings
incentive program, with Statistics Canada reporting that Alberta leads all
provinces in its financial support of public education. The results of these
efforts were highlighted in 2004 international testing - Alberta students
shared the highest scores in reading, moved from third to second in
mathematics and ranked fourth in science.

Statistics Canada reports that university students in Alberta paid on
average $5,125 in tuition fees for the 2005/2006 academic year, a
31.2 per cent increase since the 2000/2001 academic year.

Peter Lewis, Vice President, Canadian Scholarship Trust Foundation is
available to speak about the impact of the ACES grant on education savings in
Alberta, accessing ACES and how parents can prepare to save for a child's
post-secondary education.

Albertan families accessing the ACES grant are also available to speak
about how ACES influenced their decision to start an RESP for their children.

The Canadian Scholarship Trust Foundation, founded in 1960, is the oldest
and largest provider of RESPs in Canada with $2 billion in assets under
administration. Its mission is to promote the benefits of higher education and
improve access by reducing financial barriers and providing wide distribution
of RESPs.