Repayment Assistance Plan (RAP) Guide 2025

Updated March 2025 · 10 min read

The Repayment Assistance Plan (RAP) is the federal government's safety net for Canada Student Loan borrowers who cannot afford their standard monthly payments. RAP ensures that no one needs to pay more than they can reasonably afford, and it provides a path to full loan forgiveness for those who need it.

What Is RAP?

RAP is an income-based repayment assistance program for borrowers with Canada Student Loans managed by the NSLSC. It is not available for provincial loans (which have their own provincial equivalents), private bank student lines of credit, or loans in default.

RAP works in two stages:

• Stage 1 (First 10 years of assistance): The government pays any loan principal and interest (where applicable) that exceeds your affordable payment amount
• Stage 2 (After 10 years on RAP, or 15 years total repayment): Any remaining loan balance is forgiven

RAP Income Thresholds (2024–25)

RAP uses a formula based on family size and income to determine your affordable payment. Approximate thresholds for a $0 monthly payment in 2024–25:

• Single borrower: income below approximately $25,000/year
• Family of 2: income below approximately $35,000/year
• Family of 3: income below approximately $43,000/year
• Family of 4: income below approximately $50,000/year

These thresholds are indexed to inflation and updated periodically. At incomes above these thresholds, your payment increases gradually up to 20% of gross income, but never more.

RAP Payment Formula

Your monthly RAP payment is the lower of:

• 20% of your gross monthly family income, or
• Your standard monthly payment (what you'd pay on the regular 10-year schedule)

If 20% of your income is less than the interest portion of your payment, the government covers the gap so your balance doesn't grow.

Who Qualifies for RAP?

To be eligible for RAP, you must:

• Have a Canada Student Loan in good standing (not in default)
• Have completed the 6-month non-repayment period after leaving school
• Be a Canadian citizen, permanent resident, or protected person
• Demonstrate that your standard monthly payments exceed 20% of your gross family income

There is no minimum income to apply — if your income is very low or zero (e.g., you are unemployed or dealing with a health issue), your RAP payment could be $0.

RAP for Borrowers with Disabilities

A special version of RAP — RAP-Disability (RAP-D) — is available for borrowers with a permanent disability that affects their ability to work. Under RAP-D:

• Payments are based on income, same formula as regular RAP
• Forgiveness may come sooner — after 5 years of repayment in some cases
• Additional consideration is given to disability-related expenses in the income assessment

How to Apply for RAP

1. Log in to your NSLSC account at nslsc.canlearn.ca
2. Go to the Repayment Assistance section
3. Complete the RAP application — you will need to provide current income information (pay stubs, Notice of Assessment, or a statutory declaration of income)
4. Submit the application
5. NSLSC reviews your application — typically within 4–6 weeks
6. If approved, your new monthly payment takes effect at the start of the next billing cycle

What Counts as Income for RAP?

RAP assesses your gross family income, which includes:

• Employment income (wages, salary)
• Self-employment income
• EI benefits
• Social assistance payments
• CPP/OAS benefits
• Investment income
• Spouse's or common-law partner's income

RRSP withdrawals, child benefits, and OSAP grants are generally excluded. Confirm with the NSLSC if you have unusual income sources.

RAP and Loan Forgiveness

RAP includes a built-in forgiveness backstop:

• After 10 years of receiving RAP assistance, any remaining Canada Student Loan balance is forgiven
• If you've been in repayment for 15 years total (on or off RAP), any remaining balance is also forgiven

Forgiveness happens automatically — the NSLSC tracks your years and applies forgiveness without you needing to apply separately.

Provincial RAP Equivalents

Each province that participates in the integrated loan system has its own repayment assistance program for the provincial loan portion. These programs generally mirror the federal RAP but may have different thresholds and application processes. Some provinces also provide repayment assistance on their own systems. Check your provincial student aid authority for details.

Alternatives to RAP

If you don't qualify for RAP or want a different option:

• Revision of Terms: Extend repayment to 15 years for lower payments with no income requirement
• Temporary Deferral: Pause payments for up to 6 months in genuine hardship situations
• Interest Relief (historical): No longer needed for federal loans since they are now interest-free, but may still be relevant for some provincial loans