Finishing your academic studies and getting a degree of your choice is perhaps the most anticipated moment in one’s life. For many, the end of study does not mean the end of their academic expenses. Interest rates on student loans, for instance, go up at graduation. With the change in financial realities encountered after leaving university, finding yourself in tight financial situations is common.

Nevertheless, there’s a bright light at the end of the tunnel. The government doesn’t hesitate to offer ways to provide student loan relief in Canada, and one of them is via Repayment Assistance Plan; let’s see what that is:

Student Loan Relief in Canada via Repayment Assistance Plan (RAP) – How it Works?

The Repayment Assistance Plan (RAP) is an initiative by the government to offer student loan relief in Canada. Depending on your income, you may either:

• Only pay the amount that doesn’t exceed 20% of your monthly income
• Or, don’t pay anything at all

Any student can apply for the RAP and can do it even right after graduation. The Government will also cover any interest that is not covered under your revised payment.

Furthermore, 60 months after starting RAP or 10 years after graduation (whichever comes first), the government will also start covering both the interest and principal amount exceeding your monthly payments. 

Eligibility Criteria For RAP:

The eligibility criteria for RAP is not that though; you just need to meet the following conditions:

• You should reside in Canada, be here on an international internship or be a reservist deployed abroad
• You are on top of your loan payments
• Your loans are in repayment, and at least six months have passed since you left school or graduated

Besides the regular RAP, there’s also a Repayment Assistance Plan for permanent disability (RAP-PD). To be eligible for this, you should meet the following conditions:

• You are eligible for the regular RAP
• Your permanent disability is evaluated and recognized by CSFAP (Canada Student Financial Assistance Program)

Repayment Assistance Plan for Permanent Disability (RAP-PD):

There’s a specific RAP for student loan relief in Canada for those with a permanent disability. 

Just like the regular RAP, the Canadian government will contribute towards your loan repayment, allowing you to reduce or even get rid of loan payment responsibilities.

Your disability-related expenses could also eliminate or lower your student loan payments.

Parting Words:

Having to pay a big chunk of money in loans can be tough when you’re going through a rough patch financially. It may seem like the walls are closing in on you, and you’re getting crushed between debts and financial responsibilities.

However, there are options for student loan relief in Canada and even besides RAP to help you get out of debt without much financial strain. Be sure to talk to your credit counselor to explore the right ones for you and start getting your financial freedom back.