Updated: April 2025  |  bremo.io financial guides

Repayment Assistance Plan (RAP) for Student Loans in Canada

The Repayment Assistance Plan (RAP) is the federal government's income-based repayment program for Canada Student Loans. If your income after graduation is too low to manage your standard monthly payments, RAP reduces or eliminates your required payment — and can eventually forgive your remaining loan balance.

RAP is one of the most important and underused tools available to Canadian graduates. Here's a complete explanation of how it works and how to use it.

How RAP Works

When you're on RAP, the government calculates your monthly payment based on your family size and income. The formula is designed so that you pay no more than 20% of your gross family income. For most people with modest post-graduation incomes, this means significantly lower payments than the standard schedule.

During RAP, if your required payment is less than the interest that would normally accumulate, the government covers the shortfall. Since federal student loans are now interest-free (as of April 2023), this is less of a factor than it used to be — but it remains important for provincial loans in provinces that still charge interest.

Who Is Eligible?

To qualify for RAP on your Canada Student Loan, you must:

• Be a Canadian citizen or permanent resident
• Have a Canada Student Loan in good standing (not in default)
• Have been out of school for at least 6 months
• Demonstrate financial need based on your income and family size

There's no strict income cutoff — the program is assessed based on your situation. A single person earning $35,000 might qualify, as might someone earning $50,000 with dependants.

How to Apply for RAP

1. Log into your NSLSC account at csnpe-nslsc.canada.ca
2. Navigate to the Repayment Assistance section
3. Submit your application with your current income documentation
4. Wait for the assessment — usually processed within a few weeks
5. If approved, your new payment amount takes effect the following month

You must reapply for RAP every 6 months. If your income changes significantly, you can reapply sooner.

RAP Payment Examples

Here are approximate examples of how RAP payments work (single person, no dependants):

• Income under ~$20,000: Required payment of $0/month
• Income of $30,000: Approximately $100–$150/month
• Income of $45,000: Approximately $200–$300/month
• Income above ~$65,000: Full standard payment may apply

These are estimates — your actual payment depends on family size and total loan balance.

RAP for Borrowers with Disabilities

There's a separate stream of RAP for borrowers with permanent disabilities. Under RAP for Borrowers with Disabilities, your payments are reduced based on a more generous formula, and loan forgiveness can happen sooner. If you have a documented permanent disability, ask the NSLSC about this option specifically.

Loan Forgiveness Through RAP

This is the part most people don't know about: if you've been on RAP for a cumulative total of 10 years, the government forgives any remaining federal student loan balance.

Additionally, if you've been making payments for 15 years total (whether on RAP or regular repayment), the remaining balance is also forgiven. This ensures that no borrower is stuck with a federal student loan forever.

RAP vs. Revision of Terms

If you don't qualify for RAP but want smaller payments, you can apply for a Revision of Terms through the NSLSC — this extends your repayment period up to 15 years, lowering monthly payments. However, this is generally less beneficial than RAP because it doesn't offer eventual forgiveness and may extend interest charges on provincial loans.

Common Mistakes to Avoid

• Waiting too long to apply: Apply for RAP as soon as you're struggling — don't wait until you miss a payment
• Forgetting to reapply: RAP expires every 6 months. Set a reminder to reapply
• Assuming your provincial loan is covered: RAP applies to your Canada Student Loan. Check with your provincial aid office about their repayment assistance programs
• Thinking it hurts your credit: Being on RAP does not negatively affect your credit as long as you're making your required (even $0) payments

Should You Use RAP?

If your income is tight after graduation, absolutely. Since federal loans are now interest-free, being on RAP doesn't cost you anything extra — it just gives you breathing room. And the 10-year forgiveness provision means you're not trapped with debt forever.

If you're earning well and can afford standard payments, you may prefer to just pay off your loan normally and be done with it sooner.