What Is the Canada Repayment Assistance Plan?
The Canada Repayment Assistance Plan (RAP) caps your federal student loan payment at an affordable share of your family income, and it can reduce it to $0 if your income is below the threshold for your family size. It's a federal program, and the official RAP page on canada.ca lays out the rules.
Here's what that means in practice:
- Your payment is based on your gross family income and family size, so it can be far below the standard 10-year payment.
- While you're approved and paying your RAP amount, your loan stays in good standing and out of collections.
- RAP covers the federal portion of your loan only. Provincial portions, such as OSAP in Ontario, are handled separately, and Quebec runs its own program.
Ignoring student loan payments is the worst option. Missed payments pile up, collection steps follow, and repayment problems escalate faster than most people expect. Applying early is the best protection you have.
This guide covers who qualifies, how to apply in six steps, a worked $70,000 example, forgiveness timelines, and what to do if student loans are only part of your debt problem.
Who Qualifies and What You Need Before You Apply
You qualify for RAP if you have a Canada Student Loan in repayment and your family income is too low for the standard payment to be affordable. Repayment starts after the six-month grace period that follows the end of your studies. The federal repayment assistance overview explains the broader set of help options.
Income thresholds scale with family size. A single borrower with a family income of $25,000 or less pays $0, and the threshold rises for each additional family member. Thresholds can change, so confirm the current table on canada.ca before you rely on any figure.
Check where your loans sit
RAP only applies if you hold federal loans. Some provinces and territories lend directly, and Quebec, the Northwest Territories and Nunavut run their own programs. Provincial student aid sites, such as Alberta's RAP page and StudentAid BC's repayment help page, explain how the plan works with the provincial side of your loan. Ontario borrowers should apply separately for OSAP help, and our guide to repaying your Ontario student assistance loan walks through that process.
Gather these before you start
- Your Social Insurance Number
- Your National Student Loans Service Centre (NSLSC) login
- Your most recent Notice of Assessment or other proof of income
- Your spouse or partner's name and income, if applicable
- Your family size, since it changes your payment
Log in to the NSLSC first and separate your federal and provincial balances. That tells you exactly how much RAP can touch.
One warning: RAP doesn't protect you if you haven't applied. Late payments can hurt your score, as we explain in how student loans affect your credit score.
How to Apply for RAP: 6 Steps
To apply for RAP, log in to your NSLSC account, confirm your family size and income, submit the RAP application, and reapply every six months. Here's the full process.
- Log in to your NSLSC account. If you don't have one, create it with your SIN and loan details. Review your balance and your standard monthly payment so you have a baseline.
- Select the Repayment Assistance Plan application. Confirm your family size. It sets your income threshold, so get it right.
- Enter your gross family income. Include your spouse or partner's income if applicable, and upload or attach the required proof, such as your Notice of Assessment.
- Estimate your payment before you submit. Your payment is based on income above your family-size threshold and is capped at a percentage of your income. The exact formula can change, so check it on the RAP page at canada.ca. A repayment calculator helps you model the numbers, and we've gathered some in our guide to debt repayment calculators.
- Submit and watch for confirmation. You'll get a confirmation of your monthly payment. If the amount is above $0, set up pre-authorized debit so you never miss a due date.
- Reapply every six months. Report any change in income or family size as it happens. Keeping your plan active is what keeps your loan in good standing.
A worked example with $70,000 in federal loans
Federal Canada Student Loans no longer charge interest. On a standard 10-year schedule, $70,000 works out to about $583 a month ($70,000 divided by 120 payments).
Under RAP, a single borrower with a family income of $25,000 pays $0. As income rises above the threshold, the payment rises gradually, but it never exceeds the capped share of your income. That's why a borrower earning $45,000 and one earning $70,000 can see very different payments on the same balance, and both can land below the standard amount. We don't quote a payment for those incomes here because the formula and thresholds are updated by the government. Run your own figures through the NSLSC estimator for an exact number.
For another look at planning a mid-sized balance, see our $40,000 student debt scenario.
If you're already behind
If you've missed payments, ask about other relief too. Our guide to government breaks on student loan payments covers pauses and related options. Ontario borrowers should also apply for provincial support so both portions of the loan are covered. The federal repayment assistance page lists the current programs.
Tips, Forgiveness Rules and Other Options If RAP Isn't Enough
Keep your plan active
Reapply on time. A lapsed RAP means your payment reverts to the standard amount, which can be a shock if your income is low. Put a reminder in your calendar five months after each approval.
Know the end point
RAP isn't open-ended. Balances can be forgiven after a maximum period in the plan. The shortest route is commonly tied to 10 years after leaving school, with longer limits in some cases. Check the current terms on canada.ca for your situation. Because federal loans no longer charge interest, your balance won't grow while you pay.
What happens if you stop paying
If you stop paying and haven't applied, the loan goes into default. It can then be sent to the Canada Revenue Agency for collection, including keeping tax refunds and benefit payments. Verify current practice on canada.ca, since collection rules can change.
The 7-year rule
Student loans can be discharged through bankruptcy or a consumer proposal only once you've been out of school for at least 7 years. Our article on student loans in a consumer proposal explains how that timing works.
When student loans are only part of the problem
Many people carry credit cards, payday loans or tax debt alongside student loans. A consumer proposal can reduce those other debts while RAP keeps your student loan payment affordable. If your student loans are less than 7 years past your school end date, they can't be included in a proposal, but everything else can be dealt with. The idea behind it is debt restructuring: reorganizing what you owe into something you can actually pay.
For more on federal and provincial options, read our student loan relief guide for graduates. If you want to see the full range of choices, our overview of alternatives to bankruptcy is a good next read.
How 4 Pillars can take this off your plate
4 Pillars is an independent debtor advocate with 51 offices across Canada and a free initial consultation. We have 3,000+ verified TrustPilot reviews averaging 4.9/5, and our second-insolvency rate is under 2% compared with an industry average of 24%. We take on the paperwork and the negotiation so you can focus on rebuilding, and we help with rebuilding your credit afterward.
Frequently Asked Questions About the Repayment Assistance Plan
Who qualifies for the repayment assistance plan?
Borrowers with a Canada Student Loan in repayment qualify if the standard payment is unaffordable relative to their family income and family size. Those with income at or below the threshold for their family size pay $0. Residents of provinces that run their own programs, such as Quebec, apply through those programs. Confirm current thresholds on canada.ca.
What happens if I don't pay my student loan for 7 years in Canada?
Your loan goes into default and may be sent to the Canada Revenue Agency for collection, which can include keeping tax refunds and benefit payments. The balance doesn't simply disappear. However, if you've been out of school for 7 years, you may be able to include the loan in a bankruptcy or consumer proposal. Applying for RAP before you fall behind is the safer route. For more, see our answer on student loans, debt restructuring and Revenue Canada.
How much is the monthly payment on a $70,000 student loan?
On the standard 10-year schedule, interest-free federal loans of $70,000 cost about $583 a month. Under RAP, your payment depends on income and family size: $0 at or below the threshold, and rising with income but capped at a share of it. Use the worked examples in this guide and the NSLSC estimator for your exact figure.
Does Canada forgive student loans after 10 years?
Not automatically. RAP can end with forgiveness of the remaining balance after a set time in the plan, and the shortest timeline is tied to 10 years after leaving school. You must stay enrolled in RAP and reapply as required. Check current terms on canada.ca for your situation.
If you have other debts alongside your student loans, book a free consultation with 4 Pillars and we'll show you your options.
