Personal Finance

Canada Student Loan Repayment Assistance: How Does RAP Work?

Canada Student Loan borrowers who are finding payments difficult may get help through RAP. The program can lower monthly payments or reduce them to $0 based on income and family size.

Canada Student Loan Repayment Assistance Plan: Paying back student loan can be hard when you don’t have a good income after leaving school. Canada has a program that can help borrowers who are struggling with their monthly payments which called the Repayment Assistance Plan (RAP).

RAP can lower your monthly loan payment based on your income and family size. In some cases, your payment can even become $0 for a period of time. You don’t have to wait until your loan is in serious trouble to apply. You can apply once your loan has entered repayment and whenever you’re finding it hard to pay.

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What is the Canada Student Loan Repayment Assistance Plan?

RAP is meant for people who are having trouble paying back their Canada Student Loan. When you qualify, the government can reduce the amount you’re expected to pay each month. Some borrowers may not have to make a payment at all for the approved period.

The help is given for 6 months at a time. When those 6 months are over, you must apply again if you still need help. RAP isn’t an automatic benefit that keeps going forever. Your income and other details are checked again when you reapply.

For borrowers who qualify for RAP, the Government of Canada can cover federal loan interest that isn’t covered by the borrower’s reduced payment. After 60 months on RAP or 10 years after leaving school, the government can also start paying down the principal and any remaining interest. This helps eligible borrowers keep moving toward paying off their loan.

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Who Can Apply for RAP?

  • You can generally apply when your Canada Student Loan is already in repayment. This means at least 6 months have passed since you finished school, left school or changed from full-time to part-time studies.
  • You also need to be up to date with your loan payments
  • In most cases, you must live in Canada
  • There are some exceptions for people such as certain reservists or people taking part in an eligible international internship

Your family income and family size are important when the government checks whether you qualify. The current monthly gross family income thresholds listed by the Government of Canada are:

Family size Income threshold
1 $3,866
2 $4,535
3 $5,556
4 $6,412
5 $7,170
6 $7,854
7+ $8,483

People whose income is above these amounts may still qualify for reduced payments. The income rules can be different for the provincial part of a student loan.

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How Does RAP Reduce Your Student Loan Payments?

When you apply for RAP, the government looks at your financial situation and works out an affordable payment. This amount can be lower than your normal monthly payment. For some borrowers, it can be reduced to $0.

RAP works in stages. During the first stage, the government can cover the federal interest that your affordable payment doesn’t cover. Once you reach the later stage, government support can also help pay down the principal as well as interest that isn’t covered by your reduced payment. The federal government also limits how long eligible borrowers should remain in repayment. In most cases, the repayment period can’t be more than 15 years after leaving school. For borrowers with a disability, the limit is generally 10 years.

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How to Apply for Repayment Assistance?

  • Apply is through your National Student Loans Service Centre (NSLSC) online account.
  • Log in to your secure NSLSC account and submit your application for repayment assistance.
  • You can also apply by mail by completing the RAP application form and sending it to the NSLSC.
  • RAP support lasts for 6 months at a time.
  • Once the 6-month period ends, you’ll need to apply again if you still qualify and need help with your student loan payments.

It’s important not to ignore your loan payments while waiting for help. Borrowers who are already struggling should check their NSLSC account and contact the service centre about their available options.

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What is RAP-D for Borrowers with Disabilities?

(Credit: FlexJobs)

There is another version of the program called the Repayment Assistance Plan for Borrowers with Disabilities (RAP-D). It can provide extra help to eligible borrowers who have a recognized disability.

RAP-D can lower the monthly payment and may allow a borrower to have no payment at all. Gov of Canada reports that disability-related expenses can also be considered when the application is assessed. Like regular RAP, approval is given for 6 months and borrowers normally need to reapply to continue receiving assistance.

Some people with a severe permanent disability may also qualify to have their federal student debt cancelled through the Severe Permanent Disability Benefit if they meet the program rules.

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What Happens if You Go Back to School?

Going back to school can change how your existing student loan is handled. You generally don’t have to make payments on an existing federal student loan while you’re back in school.

However, there are restrictions if the government has already paid down your principal while you were receiving RAP. In that situation, you may not be able to receive new federal student grants or loans until the unpaid amount is dealt with. Different rules can apply to the provincial part of your loan.

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FAQs

1. Can RAP make my student loan payment $0?

Yes. Depending on your income and family size, you may qualify for a $0 payment during an approved 6-month period.

2. Do I have to apply for RAP every year?

No. RAP is approved in 6-month periods, so you need to reapply every 6 months to keep receiving assistance.

3. Can I apply for RAP right after graduation?

RAP is for loans that are in repayment. Normally, your loan enters repayment after the 6-month non-repayment period following your studies.

4. Is interest charged on Canada Student Loans?

No new interest is charged on Canada Student Loans. Provincial student loans may follow different rules, so borrowers with a provincial portion should check their province’s rules.

Tarique Anwer

Tarique Anwer is a finance writer, editor, and digital publishing professional with a background in banking and financial services. Before entering the media industry, he worked at Bank of America in online fraud operations, gaining firsthand experience with banking systems, financial processes, and consumer financial services. Today, Tarique writes about personal finance, banking, retirement benefits, government programs, consumer technology, and business trends. His goal is to translate complex financial and technical topics into clear, practical guidance that helps readers navigate important decisions with confidence. With an MBA and more than a decade of experience in digital media, journalism, and content leadership, Tarique brings both industry knowledge and editorial expertise to his work.

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