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.
(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.
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(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) 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
(d) any provincial share paid pursuant to an agreement or arrangement made under subparagraph 18(b)(ii),
(a) the amount of interest calculated in that loan year in respect of outstanding loans referred to in the description of A made under an agreement entered into under section 6.1, at the rate of interest fixed or determined in accordance with subsection 20(2),
(b) any amounts received by or on behalf of Her Majesty in right of Canada in respect of a provincial share paid pursuant to an agreement or arrangement made under subparagraph 18(b)(ii), and
(a) the amount of interest received by or on behalf of Her Majesty in right of Canada in that loan year in respect of loans referred to in the description of A that were made under an agreement entered into under section 6.1, and
total program net costs , for a loan year, means the amount determined by the formula
(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 authorities for participating provinces, and
(a) the estimated amount of interest calculated in that loan year in respect of outstanding loans referred to in the description of A made under an agreement entered into under section 6.1, at the rate of interest fixed or determined in accordance with subsection 20(2),
(7) The following amounts shall be included in the calculations described in the definitions net costs and total program net costs in subsection (6) only if the government of the province satisfies the Minister, by written notice received by the Minister before the beginning of the loan year in question, that, in relation to the matter in question, the provincial student financial assistance plan has substantially the same effect as the plan established by this Act and the regulations:
(a) amounts that are determined as a result of the application of subparagraph 5(a)(viii), section 7, as that section read from time to time before April 1, 2023, or section 10 or 11;
(c) in respect of loans made under an agreement entered into under section 6.1, amounts in relation to a termination of a borrower’s obligations under section 10.1 or 11.1 or to a reduction in the outstanding principal resulting from the operation of regulations made under paragraph 15(1)(o), other than regulations that provide for the repayment of student loans by borrowers on an income-contingent basis.
(1.1) For greater certainty, nothing in this section relieves a borrower from liability for interest that accrued before April 1, 2023 on a student loan.
