Canada Student Financial Assistance Act — S-22.7 14
Alternative payment 14 (1) Where the government of a province has, at least twelve months before the beginning of a loan year, notified the Minister in writing that a provincial student financial assistance plan will be in operation in that province in that loan year and that it does not wish, or no longer wishes, to participate in the plan established by this Act and the regulations, the Minister shall pay to the province, not later than six months after the end of that loan year and each following loan year in which it does not participate in the plan, an alternative amount for the loan year, calculated as provided in this section. Non-participating provinces (2) The government of a province that, on the coming into force of this section, is not participating in the student loan plan established by the Canada Student Loans Act is deemed to have notified the Minister as described in subsection (1) in respect of the loan year in which this section comes into force. Opting in, or opting back in (3) The government of a province that is not participating in the plan established by this Act and the regulations but later wishes to participate may do so by so notifying the Minister in writing at least six months, or such shorter period as the Minister may fix, before the beginning of the loan year in which it wishes to participate. Calculation of alternative amount (4) The alternative amount for a province for a loan year (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 costs for participating provinces for that loan year, and (ii) the denominator is the net per capita costs for participating provinces for the previous loan year; and (b) the escalator for the first loan year in which a provincial student financial assistance plan will be in operation in the province, as stated in the notice under subsection (1), is a fraction of which (i) the numerator is the net per capita costs for participating provinces for that first loan year, and (ii) the denominator is the net per capita costs for the previous loan year for provinces that are participating provinces in that first loan year. Definitions (6) In this section, net costs , for a province for a loan year, means the amount determined by the formula (A + B) - (C + D) where A is the estimated aggregate of all amounts paid by the Minister in that loan year (a) to lenders, service providers or financial institutions under this Act, the regulations or an agreement entered into under section 5, 6.2 or 6.3, to lenders under the Canada Student Loans Act or the regulations made under that Act, and to collection agencies, in respect of student loans or guaranteed student loans made pursuant to certificates of eligibility issued or caused to be issued in any loan year by the appropriate authority for that province, and (b) to persons pursuant to regulations made under paragraph 15(1)(p), excluding (c) any amounts paid pursuant to paragraph 5(e) or pursuant to regulations made under paragraph 15(1)(o) that provide for the repayment of student loans by borrowers on an income-c