Updated: April 2025  |  bremo.io financial guides

Canada Repayment Assistance Plan (RAP) 2025

The Repayment Assistance Plan (RAP) ensures that Canada Student Loan repayments never become unmanageable. Payments are capped as a percentage of income, zero payments are available for low earners, and any remaining balance is forgiven after 10 years on the plan.

How RAP Payment Is Calculated

The government compares your family income to a Low Income Threshold based on family size. If your income is below this threshold (approximately $25,000 for a single person), your required payment is zero — the government covers your account. Above the threshold, your payment is approximately 20% of the income above the threshold divided by 12 months.

Applying for RAP

Apply at csnpe-nslsc.canada.ca or by mail. Provide income documentation (Notice of Assessment or recent pay stubs) and family size. Processing typically takes 4-6 weeks. Apply several months before your first payment is due if you anticipate difficulty affording the standard amount.

Six-Month Renewals

RAP must be renewed every six months. Missing a renewal reverts you to standard payment. Set a calendar reminder 8 weeks before your renewal deadline. The NSLSC sends notices but your renewal is ultimately your responsibility.

Phase 1 vs. Phase 2 RAP

Phase 1 (first 60 months): Government covers any interest shortfall; you pay what you can toward principal. Phase 2 (months 61+): Government covers full principal shortfall; your payments go entirely toward principal. After total 10 years on RAP, remaining balance is forgiven. The government has effectively guaranteed that no borrower carries federal student debt beyond 10 years of income-based repayment.

Provincial RAP

Federal RAP covers only the Canada Student Loan (federal) portion. Provincial loans have separate assistance programs. Apply to both the federal NSLSC and your provincial servicer if you carry both federal and provincial loan balances with income challenges.