Order Fixing the Day on Which Certain Provisions of the Fall Economic Statement Implementation Act, 2022 Come into Force: SI/2023-78
Canada Gazette, Part II, Volume 157, Number 26
Registration
SI/2023-78 December 20, 2023
FALL ECONOMIC STATEMENT IMPLEMENTATION ACT, 2022
Order Fixing the Day on Which Certain Provisions of the Fall Economic Statement Implementation Act, 2022 Come into Force
P.C. 2023-1223 December 8, 2023
Her Excellency the Governor General in Council, on the recommendation of the Minister of Employment and Social Development, under subsection 168(2) of the Fall Economic Statement Implementation Act, 2022, chapter 19 of the Statutes of Canada, 2022, fixes the day after the day on which this Order is made as the day on which sections 146, 147, 150 to 152, 157 and 158, subsections 159(2) and (3) and sections 160 and 166 of that Act come into force.
EXPLANATORY NOTE
(This note is not part of the Order.)
Proposal
This Order in Council, pursuant to subsection 168(2) of the Fall Economic Statement Implementation Act, 2022, fixes the day on which sections 146, 147, 150 to 152, 157 and 158, subsections 159(2) and (3) and sections 160 and 166 of that Act come into force in support of the permanent elimination of interest accrual on Canada Student Loans (CSL) and Canada Apprentice Loans (CAL).
Specifically, this Order fixes that day as the day after the day on which this Order is made.
Objective
The objective of this Order is to bring into force amendments to the Canada Student Loans Act, Canada Student Financial Assistance Act, and Apprentice Loans Act that repeal or amend certain regulation-making authorities as well as provisions associated with those authorities.
Background
On November 3, 2022, the permanent elimination of interest accrual on CSLs and CALs was announced in the 2022 Fall Economic Statement.
To implement the permanent elimination of interest accrual, legislative amendments, regulatory amendments, and changes to the student and apprentice loan agreements are required.
Amendments to the Canada Student Financial Assistance Act, Canada Student Loans Act, and Apprentice Loans Act were introduced on November 4, 2022, as part of the Fall Economic Statement Implementation Act, 2022, and received royal assent on December 15, 2022.
Amendments to the Canada Student Financial Assistance Regulations, the Canada Student Loans Regulations, and the Apprentice Loans Regulations will align the regulations with the legislation while ensuring that borrowers remain liable to repay any interest that may have accrued prior to the elimination of interest accrual.
While the legislative provisions that enact the elimination of interest accrual came into force on April 1, 2023, other existing provisions in all three Acts continued to reference situations in which interest payments on loans could take place, creating a misalignment within the legislation. This order repeals provisions in the Canada Student Loans Act and the Canada Student Financial Assistance Act related to specific situations in which interest is payable and when regulations related to interest-free or interest-reduced periods can be made. Provisions related to calculating alternative payments to non-participating provinces and territories are amended in both Acts to ensure that interest amounts paid prior to the elimination of interest accrual will be included in calculations as appropriate. The amendments to the Apprentice Loans Act remove the authority to make regulations about interest-free or interest-reduced periods.
Implications
The amendments to the Canada Student Loans Act, Canada Student Financial Assistance Act, and Apprentice Loans Act remove outdated and extraneous provisions referencing interest-related regulation-making authorities. Removing these provisions will mitigate possible stakeholder confusion caused by legislative inconsistencies.
Consultation
As the amendments brought into force by the Order are housekeeping in nature, no consultations with stakeholders took place.
Contact
Erin Heatherington
Director
Program Policy
Canada Student Financial Assistance Program
Employment and Social Development Canada
200 rue Montcalm, Tower II
Gatineau, Quebec
K1A 0J9
Email: erin.hetherington@hrsdc-rhdcc.gc.ca