Canada Student Loans Act — S-23 16
Alternative payment 16 (1) Where the government of a province has, at least twelve months before the commencement of a loan year, informed the Minister in writing that a provincial student loan plan will be in operation in that province in that loan year and that no appropriate authority for that province will be designated for that loan year for the purposes of this Act, the Minister shall pay to the province, not later than six months after the end of that loan year, an alternative amount calculated as provided in this section. Calculation of payment (2) An alternative amount for a province for a loan year beginning before August 1, 1991 is the amount, as determined by the Minister after consultation with the Chief Statistician of Canada, obtained by (a) multiplying (i) subject to subsection (3), the aggregate of all amounts paid by the Minister in that loan year to lenders under sections 6, 7 and 8, paragraph 10(b), as that paragraph read from time to time before April 1, 2023, and sections 12 and 13, and to collection agencies, in respect of guaranteed student loans made on the basis of certificates of eligibility issued or caused to be issued by the appropriate authorities for participating provinces that issued or caused to be issued such certificates in that loan year, minus all amounts collected by or on behalf of His Majesty in that loan year in respect of those loans, by (ii) the quotient obtained by dividing (A) the estimated number of persons in that province that, on the first day of that loan year, have attained eighteen years of age and have not attained twenty-five years of age, by (B) the estimated number of persons, in provinces the appropriate authorities for which issued or caused to be issued certificates of eligibility in that loan year, that, on the first day of that loan year, have attained eighteen years of age and have not attained twenty-five years of age; and (b) subtracting from the product obtained under paragraph (a) the result obtained when that product is multiplied by the quotient obtained by dividing (i) the total amount of guaranteed student loans authorized by that province in the preceding three years by (ii) the total amount of guaranteed student loans authorized by all participating provinces in the same period. Exception (3) The amounts described in subparagraph (2)(a)(i) that were paid or collected in respect of a loan made to a part-time student or that were paid under paragraph 10(b), as it read from time to time before April 1, 2023, shall be included in the calculation set out in subparagraph (2)(a)(i) only if the government of the province satisfies the Minister that the provincial student loan plan includes provisions having substantially the same effect as the provisions of this Act relating to loans to part-time students or to the granting of special interest-free periods to borrowers respectively. Calculation of payment (4) An alternative amount for a province for a loan year beginning on or after August 1, 1991 (in this subsection referred to as the “current loan year”) is the amount, as determined by the Minister after consultation with the Chief Statistician of Canada, obtained by (a) multiplying (i) the net per capita costs for participating provinces for the loan year beginning on August 1, 1990 by (ii) the product obtained by multiplying the estimated number of persons in that province who, on the first day of the current loan year, have attained eighteen years of age and have not attained twenty-five years of age by the escalator determined under subsection (5) for each loan year in the period beginning on August 1, 1991 and ending on July 31 of the current loan year; and (b) subtracting from the product obtained under paragraph (a), the net costs for that province for the current loan year. Escalator (5) For the purposes of subparagraph (4)(a)(ii), (a) subject to paragraph (b), the escalator for a loan year is a fraction of which (i) the numerator is the net per capita