Vol. 146, No. 7 — March 28, 2012
SI/2012-15 March 28, 2012
KEEPING CANADA’S ECONOMY AND JOBS GROWING ACT
Order Fixing the Day on which this Order is made as the Day on which Section 154 and Subsection 155(3) of the Act Come into Force
P.C. 2012-289 March 15, 2012
His Excellency the Governor General in Council, on the recommendation of the Minister of Human Resources and Skills Development, pursuant to subsection 159(2) of the Keeping Canada’s Economy and Jobs Growing Act, chapter 24 of the Statutes of Canada, 2011, hereby fixes the day on which this order is made as the day on which section 154 and subsection 155(3) of that Act come into force.
(This note is not part of the Order.)
This Order in Council fixes the day on which this Order is made as the day on which section 154 and subsection 155(3) of the Keeping Canada’s Economy and Jobs Growing Act come into force, thereby giving effect to amendments to section 13 and subsection 15(1.1) of the Canada Student Financial Assistance Act (CSFAA).
These amendments will authorize the Governor in Council (GIC) to prescribe the aggregate amount of Canada Student Loans that may be outstanding at any given time, and the loans that are to be considered for this purpose, thereby ensuring that the growth in student loans continues to reflect the needs of students.
Section 13 of the CSFAA currently sets a $15-billion limit on outstanding Canada Student Loans. The Office of the Chief Actuary estimates that the aggregate amount of outstanding student loans will reach $15 billion in January 2013. However, if demand for student loans increases above forecast, this amount could be reached earlier.
On December 15, 2011, the Keeping Canada’s Economy and Jobs Growing Act received Royal Assent. Section 154 and subsection 155(3) of this Act amend the CSFAA to transfer the limit on aggregate outstanding student loans from legislation to regulations by
- Amending section 13 of the CSFAA to stipulate that the aggregate amount of student loans made under the CSFAA that are outstanding may not exceed the prescribed amount; and
- Adding subsection 15(1.1) to the CSFAA to authorize the GIC, on the recommendation of the Minister of Human Resources and Skills Development, with the concurrence of the Minister of Finance, to make regulations for the purposes of section 13 to (a) prescribe the aggregate amount of outstanding student loans that may not be exceeded; and (b) prescribe the student loans that are to be considered for the purpose of determining, at a given time, the aggregate amount of outstanding student loans.
Canada Student Loans are delivered in partnership with participating provinces and territories. Bringing these legislative amendments into force will have no effect on the roles and responsibilities of this partnership. The Canada Student Loans Program of Human Resources Skills Development Canada will continue to work closely with participating provinces and territories in delivering Canada Student Loans.
However, failure to bring these amendments into force would have a significant impact on provincial and territorial partners. Pursuant to cost-sharing arrangements between the Government of Canada and participating provinces and territories, the federal government covers 60% of a student’s assessed need for financial assistance up to a maximum amount, while provincial and territorial partners are responsible for the rest. Without these legislative amendments, and a subsequent regulation to establish a new limit, the federal government could be unable to continue providing its share of government student financial assistance as of January 2013. This could have serious implications for provincial and territorial partners, as provinces may face pressure from students to cover the shortfall.
Pursuant to the amendments made to the CSFAA by the Keeping Canada’s Economy and Jobs Growing Act, and in anticipation of the coming into force of these amendments, Human Resources and Skill Development Canada officials conducted consultations with representatives of the National Advisory Group on Student Financial Assistance on a regulation to prescribe the aggregate amount of outstanding student loans.
Operational Policy and Research
Canada Student Loans Program
Human Resources Skills Development Canada
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