Updated: April 2025  |  bremo.io financial guides

Student Loan Forgiveness Programs in Canada 2025

Canada has several programs that can reduce or eliminate student loan debt — but they're not always well publicized. Unlike the US, Canada doesn't have broad loan forgiveness for all borrowers. Instead, forgiveness is targeted at specific groups: low-income borrowers on extended repayment assistance, healthcare workers in underserved communities, and borrowers with permanent disabilities.

Here's a complete overview of every student loan forgiveness path available in Canada in 2025.

1. Repayment Assistance Plan (RAP) Forgiveness

The most widely available path to forgiveness is through the federal Repayment Assistance Plan (RAP). Under RAP:

• After 10 years on RAP, any remaining Canada Student Loan balance is forgiven
• After 15 years of total repayment (including time on and off RAP), any remaining balance is forgiven

This means even if your income remains low throughout your career, you won't be stuck with federal student loan debt indefinitely. The forgiveness is automatic — no separate application is required once you've met the time requirement.

To qualify, you must be enrolled in RAP and making your required payments throughout the period. If you default on your loan, the forgiveness clock may be affected.

2. RAP for Borrowers with Permanent Disabilities

Borrowers who have a documented permanent disability can access an enhanced version of RAP. Under RAP for Borrowers with Disabilities:

• Payments are reduced to an even greater extent based on the disability-specific formula
• Remaining balances can be forgiven sooner than the standard 10-year RAP period
• The program recognizes that permanently disabled borrowers may have lower lifetime earnings

Contact the NSLSC and provide documentation from a medical professional confirming your disability to access this stream.

3. Canada Student Loan Forgiveness for Family Doctors and Nurses

The federal government offers a targeted forgiveness program for healthcare professionals who practice in rural or remote communities:

• Family doctors and nurse practitioners: Up to $60,000 in Canada Student Loan forgiveness over 5 years ($8,000–$20,000/year) for practicing in eligible rural or remote communities
• Nurses: Up to $30,000 in forgiveness over 5 years for working in eligible communities

Eligible communities are identified by Health Canada as underserved areas. To qualify, you must be practicing in the community and apply annually to the NSLSC. This is one of the most generous forgiveness programs available.

4. Death or Severe Permanent Disability

If a borrower dies or becomes severely and permanently disabled and is unable to work, the remaining Canada Student Loan balance can be fully discharged. A family member or designated representative must apply to the NSLSC with the appropriate documentation.

5. Provincial Forgiveness Programs

Several provinces have their own loan forgiveness or debt reduction programs:

Nova Scotia

Nova Scotia offers loan forgiveness for graduates who stay and work in the province. The Graduate Retention Rebate provides a tax rebate of up to $15,000 over 5 years for graduates who live and work in NS.

New Brunswick

NB offers the Timely Completion Benefit, which forgives a portion of provincial loans for students who complete their degrees within the standard timeframe.

Prince Edward Island

PEI offers interest-free provincial loans and various bursaries. Contact the PEI Student Financial Assistance office for current forgiveness programs.

Manitoba

Manitoba has eliminated interest on provincial student loans and offers an income-based bursary program that can reduce loan amounts.

BC

BC offers the Health Sciences Student Loan Forgiveness Program for eligible health professionals who work in underserved BC communities.

6. Bankruptcy

While not technically a forgiveness program, student loans can be discharged in bankruptcy — but only after 7 years have passed since you were last a student. This is a last resort and has severe credit implications. Seek advice from a licensed insolvency trustee before considering this option.

What Doesn't Exist in Canada

Unlike the United States, Canada does not have:

• Broad public service loan forgiveness (outside the healthcare worker programs above)
• Income-driven repayment programs that forgive after 20–25 years for all borrowers (RAP covers 10–15 years)
• Forgiveness for working in non-profit sectors generally

Key Takeaways

• Most Canadians access forgiveness through long-term RAP enrollment, not specialized programs
• Healthcare workers in rural communities have the best targeted forgiveness access
• Borrowers with permanent disabilities have enhanced options
• The interest elimination since 2023 means the burden of federal loans is already significantly reduced