The Repayment Assistance Plan (RAP) is Canada’s primary safety net for student loan borrowers who can’t afford their standard monthly payments. It caps payments based on income, eliminates the possibility of interest accumulating beyond your means, and leads to full loan forgiveness if your balance isn’t paid off after 15 years.
RAP at a Glance
| Feature | Details |
|---|---|
| Applies to | Canada Student Loans (federal portion only) |
| Payment cap | 20% of family income above threshold |
| Minimum payment | $0 (for income below threshold) |
| Stage 1 period | First 10 years of RAP |
| Stage 2 period | After 10 years of RAP |
| Maximum forgiveness timeline | 15 years of RAP (10 years for borrowers with disabilities) |
| Re-application required | Every 6 months |
| Effect on credit | None — no negative impact |
Stage 1 vs Stage 2: How RAP Progresses
Stage 1 (First 10 Years of RAP)
| What happens | Details |
|---|---|
| Monthly payment | Capped at 20% of income above threshold; may be $0 |
| Interest not covered by your payment | Government pays it — your balance does not grow |
| Principal | You make no progress on principal if payment is $0 |
In Stage 1, the government ensures that interest never outpaces your ability to pay. Your loan balance stays frozen (or slowly declines) rather than growing.
Stage 2 (After 10 Years of RAP)
| What happens | Details |
|---|---|
| Monthly payment | Still capped at 20% of income above threshold |
| Government contribution | Covers both remaining interest AND a portion of principal |
| Your balance | Actively decreasing each month regardless of payment amount |
Stage 2 is more aggressive: the government makes progress on your principal even if your income is too low to do so yourself. This ensures the loan is fully retired by year 15.
Year 15: Full Forgiveness
After 15 cumulative years of repayment assistance (not 15 consecutive years), any remaining balance is fully forgiven. The forgiven amount is not considered taxable income in Canada — no T4A is issued for RAP forgiveness.
For borrowers with a permanent disability, forgiveness occurs after 10 years of RAP.
Income Thresholds and Payment Examples
RAP payment = 20% of income above threshold. The threshold varies by family size.
| Family size | Approximate annual income threshold (2025–2026) |
|---|---|
| Single, no dependants | ~$25,000–$33,000 |
| 1 dependant | ~$30,000–$40,000 |
| 2 dependants | ~$35,000–$45,000 |
| 3+ dependants | ~$40,000+ |
Thresholds are indexed and updated annually. Use the RAP calculator at nslsc.ca for your specific situation.
Example: Single borrower, $32,000 income, threshold $28,000
- Income above threshold: $4,000/year = $333/month
- 20% of $333 = $67/month maximum RAP payment
- If standard repayment would be $350/month, RAP reduces the payment to $67/month
Example: Single borrower, $24,000 income, threshold $28,000
- Income is below threshold
- RAP payment: $0/month
- Government covers all accruing interest
How to Apply for RAP
| Step | Action |
|---|---|
| 1 | Log in to your NSLSC account at nslsc.ca |
| 2 | Select “Repayment Assistance” from the menu |
| 3 | Submit income documentation (CRA Notice of Assessment, T4 slips, or recent pay stubs) |
| 4 | Include spouse/partner income if applicable |
| 5 | Receive decision within 1–3 weeks |
| 6 | New payment amount begins the following billing cycle |
Re-apply every 6 months. RAP approval expires after 6 months and is not automatic — missing the re-application window puts you back on your standard repayment schedule immediately.
RAP vs Other Repayment Options
| Option | Best for | Payment reduction |
|---|---|---|
| RAP | Low income; long-term need | Up to 100% (payment = $0) |
| Revised payment terms | Need more time, not lower income | 10–30% lower payments |
| Lump-sum extra payments | Higher income; want to pay faster | N/A |
| Permanent disability benefit | Permanent disability | Full discharge |
Provincial Loan RAP Equivalents
RAP applies only to the federal Canada Student Loan portion. Provincial loans have separate programs:
| Province | Provincial repayment assistance |
|---|---|
| Ontario | Ontario Student Opportunity Grant (applies after 2 years repayment) |
| British Columbia | BC Repayment Assistance Program |
| Alberta | Alberta repayment assistance |
| Quebec | Separate AFE system — own assistance programs |
| Others | Contact your provincial student aid office |
If you have both a federal and provincial loan, you may need to apply separately to your provincial office for assistance on the provincial portion.
RAP and Loan Forgiveness Programs
RAP is one of several pathways to student loan forgiveness in Canada:
| Program | Who qualifies | Amount forgiven |
|---|---|---|
| RAP — 15 year forgiveness | Any Canada Student Loan borrower on RAP 15 years | Full remaining balance |
| RAP — 10 year disability | Permanent disability | Full remaining balance |
| Rural doctors and nurses | Work in underserved rural area | Up to $60,000 |
| Permanent disability benefit | NSLSC medical discharge | Full loan discharged |
See: Student Loan Forgiveness Canada for all national forgiveness programs.
Common RAP Mistakes
| Mistake | Better approach |
|---|---|
| Missing the 6-month re-application deadline | Set a calendar reminder the month before your RAP period expires |
| Not applying because income “seems too high” | Apply anyway — the NSLSC will calculate your exact payment; you may qualify |
| Ignoring provincial loan during RAP | Apply separately to your province for the provincial portion |
| Assuming RAP handles taxes | RAP does not affect your tax obligations; consult CRA separately |
| Defaulting instead of applying | Default harms your credit; RAP payments can be $0 — there’s no reason not to apply |
Related Guides
- NSLSC Guide Canada
- Student Loan Forgiveness Canada
- How to Pay Off Student Loans
- What Happens If You Can’t Pay Your Student Loan?
- Canada Student Grant Guide
- Student Loan Repayment Calculator
Sources
- Employment and Social Development Canada. “Repayment Assistance Plan.” canada.ca/en/employment-social-development/services/student-financial-aid/student-loan/repayment/assistance
- National Student Loans Service Centre. “Repayment.” nslsc.ca
- Financial Consumer Agency of Canada. “Managing student debt.” canada.ca