If your Canada Student Loan payments are too high for your income, the federal Repayment Assistance Plan (RAP) can lower your monthly payment, sometimes to zero. You apply through the National Student Loans Service Centre (NSLSC), and approval lasts six months at a time. It is one of the most effective tools for student debt, yet many borrowers never apply.
Quick answer: RAP sets your payment based on your family income and family size. If your income is below the threshold for your family size, your payment can be zero for six months. You must reapply every six months to stay on the plan.
This article is general information, not financial advice. Confirm your eligibility with the NSLSC.
Who can use RAP?
- Borrowers repaying federal Canada Student Loans (and, in many provinces, integrated provincial loans).
- People whose income makes the standard payment hard to afford.
- Your loan must be in repayment and in good standing, or brought back into good standing.
Quebec runs its own student financial aid program, so Quebec loans are handled separately from the federal RAP. Prince Edward Island borrowers must also apply with their province.
How payments are calculated
RAP looks at your gross family income and family size. Below a monthly income threshold, you pay nothing for six months. Above it, you may still qualify for a reduced payment. As of 2026, the Government of Canada lists a monthly gross family income threshold of $3,866 for a family size of one, with higher amounts for larger families. Check the current table on the official Repayment Assistance Plan page before you apply, as thresholds are updated.
What happens to interest and your balance
Since April 2023, the federal portion of Canada Student Loans no longer accrues interest. If you have a provincial portion that still charges interest, RAP rules and provincial programs determine how it is handled. Under RAP, your reduced payment goes toward your loan, and after 60 months on RAP or 10 years after leaving school, the plan starts reducing principal as well.
In most cases, the maximum time in repayment after leaving school is 15 years (10 years for borrowers with a permanent disability). Staying eligible means the balance keeps being paid down until it is fully paid.
How to apply step by step
- Log in to your NSLSC account.
- Choose the Repayment Assistance Plan application.
- Enter your family income and family size; have your tax information ready.
- Upload documents if requested.
- Watch for the decision and confirm your new payment amount.
- Set a reminder to reapply before the six-month period ends.
You can also apply by mail with the paper RAP form if you cannot apply online.
Documents checklist
| Document | Why |
|---|---|
| Recent notice of assessment | Proves your income |
| Spouse or partner income (if applicable) | RAP uses family income |
| Recent pay stubs or proof of current income | If income dropped since your last tax return |
| Family size details | Thresholds depend on it |
RAP vs other options
- Revision of terms: extending the repayment period lowers payments without RAP.
- Repayment Assistance for Borrowers with a Permanent Disability: a separate stream with its own rules.
- Formal insolvency: student loans are generally not discharged in a bankruptcy or consumer proposal unless you have been out of school for at least seven years (or a court grants hardship relief after five). See consumer proposal vs bankruptcy.
Common mistakes
- Waiting until the loan is in default before applying.
- Forgetting to reapply every six months.
- Paying high-interest credit cards with savings while ignoring an affordable RAP option for student loans.
If you also carry credit card debt, prioritize it with the snowball or avalanche method, or explore a debt management plan.
FAQ
Does a zero payment under RAP hurt my credit?
An approved RAP payment, including zero, is your required payment, so you are not missing payments.
Can I pay more than my RAP amount?
Yes, extra payments reduce your balance faster.
What if my income changes during the six months?
Contact the NSLSC; you may be able to reapply or adjust your payment.
Is RAP available for loans in default?
You usually need to bring the loan back into good standing first. Contact the NSLSC or the Canada Revenue Agency if your loan was transferred for collection.
Conclusion
The Repayment Assistance Plan can make student loan payments affordable or temporarily zero while your income grows. Apply through the NSLSC, reapply every six months and use the breathing room to handle higher-interest debts first.
