Repayment Assistance Plan Canada — RAP Student Loans

If your income after graduation does not support your student loan payments, Canada's Repayment Assistance Plan can reduce or eliminate your monthly payment. Here is how it works.

What Is the Repayment Assistance Plan?

The Repayment Assistance Plan (RAP) is a federal government program that adjusts your Canada Student Loan repayment based on your family income and size. Under RAP, you are never required to pay more than 20% of your family income toward your student loan. If your income is below certain thresholds, your required payment can be reduced to zero — and the government covers any principal shortfall in Stage 2 of the program.

RAP is not automatic and not permanent. You must apply every six months and demonstrate continued financial need. It is a critical safety net designed to prevent graduates from defaulting simply because their income has not yet caught up to their loan obligations.

RAP Stage 1 vs Stage 2

Stage 1 (first 5 years of RAP): Your monthly payment is calculated based on income. If the calculated payment is less than your standard payment, the government covers the difference — ensuring your loan does not grow. You make reduced or zero payments while the loan balance stays flat.

Stage 2 (after 5 years on RAP, or 10 years since leaving school): If your income still does not support full payments, the government begins paying down the principal of your loan on your behalf. In Stage 2, even the principal is being reduced at government expense if your payment is insufficient. After 15 years on RAP total, any remaining Canada Student Loan balance is forgiven.

How RAP Payment Is Calculated

Annual Family Income	Family Size 1	Family Size 2	Family Size 4
Under ~$25,000	$0/month	$0/month	$0/month
$30,000	~$83/month	$0/month	$0/month
$45,000	~$250/month	~$125/month	$0/month
$60,000	~$417/month (capped 20%)	~$292/month	~$125/month

These are approximate figures — exact calculations depend on the current RAP tables published by Employment and Social Development Canada. Use the NSLSC RAP calculator for precise amounts.

Who Should Apply for RAP?

Apply for RAP if your monthly Canada Student Loan payment exceeds 20% of your family income, or if you are struggling to make payments and risk missing them. You do not need to be unemployed — underemployed graduates, those in low-wage first jobs, and graduates supporting families frequently qualify for reduced payments. Apply proactively: missing payments damages your credit and risks default, while RAP keeps you in good standing.

How to Apply

• Log in to your NSLSC account at csnpe-nslsc.canada.ca
• Navigate to Repayment Assistance and complete the application form
• Provide your most recent income information (Notice of Assessment or recent pay stubs)
• Applications are processed within 4–6 weeks
• Reapply every six months — RAP is not automatically renewed

RAP and Your Credit Score

Being on RAP with zero payment required does not negatively affect your credit score. Your loan is reported as in good standing because you are meeting your payment obligation as set by the plan. This is entirely different from missing payments, which would be reported as delinquent. RAP is designed to keep borrowers in good standing while their financial situation stabilizes.