Me and my debt

My Mom asked me about an article on the community newspaper (The Times) about a 60% rebate for post-secondary students who are graduating this year. I really had no idea so I googled it and found this information on the official website of the Manitoba Government:

Manitoba’s New Tuition Fee Income Tax Rebate

Fact Sheet

What is the value of the income tax rebate?

60% of eligible tuition fees paid after January 1, 2004.

Who is eligible?

Manitoba taxpayers who graduate after January 1, 2007 from a post-secondary institution recognized by the Canada Revenue Agency. Recognized institutions include those that are private colleges, or are located outside of Manitoba or Canada.

How much can be claimed?

Maximum claim per year is the lesser of all of the following:

  • MB income tax payable (cannot exceed Manitoba tax payable in any given year)
  • 10% of eligible tuition fees (rebate is 60% of eligible tuition fees – therefore 10% per year makes it payable over a minimum of 6 years)
  • $2,500 (rebate claim cannot be higher than $2,500 each year)

The full rebate can be claimed in no less than six years.

Unused claims in a year can be carried forward for up to 20 years.

Is there a cap?

Maximum lifetime rebate is $25,000 (equivalent to a 60% rebate on tuition fees of $41,667).

Will this have an impact on other benefits?

The rebate will not affect bursaries and scholarships or existing tax credits for education and tuition fees.

What is the process for making a claim?

Applicants will submit their claims as part of their income tax returns, starting with the 2007 returns, which will be filed in early 2008. (Read More…)

I know there will be people who will say that is not enough, that the government should do more. It really is expensive but I think this is a good start especially for people like me who paid their tuition fees through student loans. I don’t even want to know how much debt I already am with the government right now. Sixty percent is a big chunk. That and the bursaries/scholarships I received in the past will make a really good dent against my debt.

Now I’m curious to find out exactly how much I owe…

3 Responses to “Me and my debt”

  1. niceheart Says:

    I think any rebate is better than nothing. Hay naku! I have a child who’s entering university this Fall, so major gastos. I will try to save up money na nga every payday. I’m also encouraging him to apply to as many scholarships para pantulong na rin. I’m trying to avoid student loans. I once had one for myself and it was such a burden to pay. When I calculated how much I ended paying, it was twice the amount of the loan. Sorry, I’m not trying to scare you, but that’s just what it was.

  2. Karen Says:

    that’s okay 😉 , i already prepared myself to be in debt naman. with the 60% rebate and all the bursaries i received in the past years, malaki na rin yung naalis sa loan ko.

  3. airellb Says:

    this aint in reading is it?

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