The Repayment Assistance Plan (RAP) lowers or pauses student loan payments for borrowers who can’t afford the standard payment. This page covers how RAP calculates your payment, the income thresholds, what the government pays, how Ontario’s provincial RAP differs, and how to apply. Other ways to repay are in how to pay off student loans, and the student loans hub lists every guide.
RAP at a glance
| Feature | Federal RAP (Canada Student Loans) |
|---|---|
| Payment cap | 10% of gross family income |
| Payment below the income threshold | $0 |
| Interest your payment doesn’t cover | Paid by the government |
| Principal help | Starts after 60 months on RAP or 10 years after leaving school |
| Longest time in repayment | 15 years after leaving school (10 with a disability) |
| Approval period | 6 months, then reapply |
| Requirement | Loans in good standing (not in default) |
(Sources: canada.ca, Repayment Assistance Plan; canada.ca, RAP changes.)
How RAP progresses
First, interest relief. Your affordable payment goes to the loan, and the government pays any interest it doesn’t cover, so the balance doesn’t grow. With a $0 payment the principal stays where it is. The federal portion of a Canada Student Loan has charged no interest since April 1, 2023, so interest relief matters most for interest-bearing provincial portions.
Then, debt reduction. After 60 months on RAP, or once it has been 10 years since you left school, the government also pays down principal your payment doesn’t cover.
The end point. Together these ensure no borrower is in repayment for more than 15 years after leaving school (10 years for borrowers with a disability), as long as they keep reapplying and stay eligible.
Income thresholds (federal loans)
If your gross monthly family income is below the threshold for your family size, you pay nothing on the federal loan for that six-month period. Above it, the payment rises with income, up to 10% of family income.
| Family size | Monthly gross family income threshold | Annual equivalent |
|---|---|---|
| 1 | $3,866 | $46,392 |
| 2 | $4,535 | $54,420 |
| 3 | $5,556 | $66,672 |
| 4 | $6,412 | $76,944 |
| 5 | $7,170 | $86,040 |
| 6 | $7,854 | $94,248 |
| 7 or more | $8,483 | $101,796 |
The thresholds are indexed to inflation each year. Source: canada.ca, RAP eligibility.
Example: a single borrower earning $40,000. That is $3,333 a month, below the $3,866 threshold, so the federal RAP payment is $0.
Example: a single borrower earning $55,000. That is $4,583 a month, above the threshold, so a payment applies. The 10% cap means it can’t exceed $458 a month; the formula usually sets it lower, and if your regular payment is lower than the RAP payment you wouldn’t need RAP. The NSLSC calculates the exact amount.
Ontario’s provincial RAP
Ontario offers its own Repayment Assistance Plan for the Ontario portion of an OSAP loan. You apply once, through the same integrated application, but the federal and Ontario programs have different rules, so you can get a $0 payment on the federal loan and an affordable payment on the Ontario loan.
Interest relief matters more on the Ontario side, because the Ontario portion still charges interest: prime plus 1%, charged during the six-month grace period too and added to the principal, while the federal portion charges none. Ontario’s RAP has the same two stages as the federal plan. In the interest relief stage, Ontario covers the monthly interest your affordable payment doesn’t, so with a $0 payment the principal stays frozen; in the debt reduction stage it also covers principal your payment doesn’t.
| Feature | Ontario RAP (Ontario portion of OSAP) |
|---|---|
| Payment cap | 20% of family income |
| Interest relief stage | Up to 60 months, or until you’ve been out of school 10 years |
| Debt reduction stage | Ontario covers interest and principal your payment doesn’t |
| Longest time in repayment | 15 years out of school (10 with a disability) |
Ontario’s zero-payment thresholds are lower than the federal ones:
| Family size | Gross monthly family income, below which no Ontario payment |
|---|---|
| 1 | $2,083 |
| 2 | $3,254 |
| 3 | $4,205 |
| 4 | $4,959 |
| 5 or more | $5,652 |
(Source: ontario.ca, Pay back OSAP.) Other provinces run their own programs; the provincial guides cover them.
How to apply
- Apply online through your NSLSC account, or complete a paper application.
- Report your gross family income and family size (including your spouse’s income, if any).
- The NSLSC sets your payment for the six-month period.
- Reapply before the period ends; RAP does not renew automatically.
If your spouse also has government student loans in repayment, Ontario divides the affordable payment between you in proportion to your shares of the combined debt; your spouse applies separately.
RAP vs other repayment options
| Option | Suits | Effect on the payment |
|---|---|---|
| RAP | Low family income | Can reduce it to $0 |
| Revising your terms | Need a lower payment long term | Extending from 9.5 up to 14.5 years lowers the payment but adds interest on an interest-bearing portion |
| Interest-only payments (Ontario loans) | A short-term squeeze | Up to 12 months over the life of the loan |
| Extra or lump-sum payments | Paying off faster | Ends the loan sooner |
| Severe Permanent Disability Benefit | A severe permanent disability | Can cancel the federal loan |
Ontario also lets you extend the six-month grace period by another 6 months if you own a new business in Ontario or work or volunteer for a not-for-profit.
Forgiveness
RAP limits how long you repay. Separately, federal forgiveness is available for family doctors, nurses, teachers, pharmacists and other listed professionals who work in rural communities or population centres of up to 30,000 people, up to $60,000 depending on the occupation. See student loan forgiveness in Canada.
Returning to school
While you’re in school, federal and integrated loans need no payments and charge no interest, but you must confirm your enrolment every semester or year to keep that status. When you go back to school full-time, your school’s enrolment confirmation to the NSLSC is what returns the loan to in-study status, so it’s worth checking your NSLSC account to confirm it went through.
If payments are missed
Missed payments can hurt your credit rating. A loan with no payment for 270 days or more is in default and is sent to the Canada Revenue Agency for collection (the CRA’s general collection powers are covered in what happens if you don’t pay the CRA), and you lose access to new student aid and RAP until the loan is back in good standing through loan rehabilitation. The consequences and the way back are covered in what happens if you can’t pay your student loan. (Source: NSLSC, Stages of a loan.)
Common RAP mistakes
| Mistake | What to do instead |
|---|---|
| Missing the six-month reapplication | Reapply before the period ends; RAP doesn’t renew on its own |
| Not applying because income “seems too high” | The NSLSC calculates the payment; an application costs nothing |
| Forgetting the provincial portion | In Ontario the same application covers it; elsewhere check with the province |
| Letting the loan default instead of applying | A RAP payment can be $0, and default brings CRA collection |
Where to go next
Your balance, payment schedule and RAP application all live in your NSLSC account, explained in the NSLSC account guide. To compare RAP with a faster payoff, the student loan repayment calculator shows how long a balance takes at a given payment, and new borrowers can check what they can get without borrowing in the Canada Student Grants guide.
Sources
- Government of Canada. “Repayment Assistance Plan.” canada.ca
- Government of Canada. “RAP eligibility.” canada.ca
- National Student Loans Service Centre. “Stages of a loan.” csnpe-nslsc.canada.ca
- Government of Ontario. “Pay back OSAP.” ontario.ca