Canada Student Loan Repayment Assistance Plan — Cap Payments and Earn Forgiveness
What Is It?
The Canada Student Loan Repayment Assistance Plan (RAP) is a federal government program that reduces your monthly student loan payment based on your income and family size — and if your income is low enough, reduces it to zero. The government covers any interest your reduced payment doesn’t cover, so your loan balance doesn’t grow while you’re on the plan. After a certain period, the government begins paying down the principal as well.
RAP is specifically for Canada Student Loans (federal) held at the National Student Loans Service Centre (NSLSC). Many provinces also offer their own parallel RAP for the provincial portion of student aid.
How It Works
Payment Cap: Your monthly payment under RAP is capped at 10% of your gross household income. If your income is below ~$40,000 (adjusted for family size), your payment may be reduced to $0.
Stage 1 — Interest Relief (first 10 years or 60 months of RAP) While on RAP, the government covers any interest that your reduced payment doesn’t cover. Your loan balance does not grow. Months in RAP count toward the forgiveness clock.
Stage 2 — Debt Reduction (after 60 months of RAP or 10 years since graduation) Once you’ve been on RAP for 60 months, OR 10 years have passed since you left school, you enter Stage 2. At this point, the government also starts paying down the principal — not just the interest — that your payment doesn’t cover. Effectively, the government begins retiring the loan for you.
Maximum repayment period: No matter what, Canada Student Loans must be repaid or forgiven within 15 years (or 10 years if you have a permanent disability). After that, the remaining balance is cancelled.
Do I Qualify?
- You have Canada Student Loans that are in repayment, generally at least 6 months after leaving school
- You live in Canada, or fit one of the limited exceptions such as an eligible international internship or reservist deployment abroad
- You are up to date on your student loan payments
- Your normal required payment is higher than what RAP considers affordable based on your income and family size
- You are ready to reapply every 6 months so the reduced payment can continue
Estimated Payment Examples
| Family Size | Gross Annual Income | Approximate RAP Payment |
|---|---|---|
| 1 | $30,000 | $0 |
| 1 | $45,000 | ~$125/month |
| 1 | $60,000 | ~$292/month |
| 2 | $50,000 | $0 |
| 2 | $70,000 | ~$208/month |
| 4 | $70,000 | $0 |
Payments are 10% of gross household income divided by 12, subject to adjustment for family size. Use the NSLSC online estimator for your exact figure.
How to Apply
Step 1 — Log in to your NSLSC account at csnpe-nslsc.canada.ca. If you don’t have an account, register using your Social Insurance Number and loan information.
Step 2 — Click “Apply for Repayment Assistance.” The application is entirely online and takes about 15 minutes. You’ll provide your income information; the NSLSC may request your most recent Notice of Assessment.
Step 3 — Your payment is adjusted within one to two billing cycles. Once approved, your next payment reflects the new reduced amount.
Step 4 — Reapply every 6 months. The plan runs in 6-month terms. You’ll be notified when to reapply. Missing a reapplication deadline returns your payment to the standard amount.
Step 5 — Apply for provincial RAP too. If your student loans include a provincial component (most do), contact your provincial student aid office to apply for matching provincial repayment assistance simultaneously.
What Most People Don’t Know
- You can apply as soon as your loan enters repayment — you don’t have to struggle for months before asking. If you know your income won’t support the standard payment, apply immediately.
- $0 payments are valid participation. If your calculated payment is $0, you are still enrolled in RAP and those months count toward the 60-month threshold for Stage 2 debt reduction.
- The 15-year outer limit is a real safety net. Even if you earn enough to make payments but RAP doesn’t eliminate the balance, Canada Student Loans cannot remain in repayment beyond 15 years — the remainder is cancelled at that point.
- Borrowers with permanent disabilities have a 10-year forgiveness window, not 15. Apply for the Severe Permanent Disability Benefit through the NSLSC if applicable.
- RAP does not apply to private student loans or provincial-only loans not managed through NSLSC. Only Canada Student Loans managed through the National Student Loans Service Centre qualify.
- Income is based on gross household income — both partners in a couple. If your partner has significant income, your payment calculation will be higher.
Who Benefits Most?
Any Canadian with federal student loans whose income doesn’t comfortably support the standard monthly payment — recent graduates in lower-paying fields, those between jobs, those with large families, and anyone facing temporary financial hardship.
Legal Basis
- Canada Student Financial Assistance Act — SC 1994, c 28
- Canada Student Loans Regulations — SOR/93-392
- NSLSC — Repayment Assistance Plan regulations administered under the Canada Student Financial Assistance Act
Frequently Asked Questions
If my calculated RAP payment is $0, do those months still count toward the 60-month threshold for Stage 2 debt reduction?
Yes. Months in which your approved RAP payment is $0 count as full RAP participation months. Every month you are enrolled — even with a zero-dollar payment — counts toward the 60-month threshold after which the government begins paying down your principal, not just covering interest shortfalls.
What happens if I forget to reapply for RAP at the 6-month renewal?
If you miss the reapplication deadline, your account reverts to the standard repayment terms and your regular (higher) monthly payment resumes. Those months outside of RAP do not count toward the 60-month RAP threshold. You can re-enroll at any time, but you cannot retroactively credit missed months.
Does RAP apply to provincial student loans as well, or only federal Canada Student Loans?
The federal RAP only covers Canada Student Loans managed through the NSLSC. Most provinces have parallel repayment assistance programs for the provincial portion of your student aid, but you must apply to each separately. Contact your provincial student aid office to apply for provincial RAP at the same time you apply federally.
Is the income threshold for RAP based on my individual income or my household income?
RAP uses gross household income — meaning if you have a spouse or common-law partner, their income is included in the calculation. A high-earning spouse will increase your calculated affordable payment under RAP, even if the loan is solely yours.
Can I be on RAP if I am behind on my student loan payments?
No. One of the eligibility conditions for RAP is that you must be current on your loan payments at the time of application. If you are in arrears, you need to bring your account up to date before applying. Contact the NSLSC to discuss a repayment arrangement to get current first, then apply for RAP.