The Repayment Assistance Plan

Backgrounder

The Repayment Assistance Plan makes it easier for borrowers who are experiencing financial difficulties to repay the federal portion of their student or apprentice loans. Under the Repayment Assistance Plan, borrowers may qualify for a reduced monthly payment or no monthly payment for up to six months at a time, and no borrower will have a repayment period of more than 15 years (or 10 years for borrowers with disabilities). With the new enhancements to the Repayment Assistance Plan, no borrower has to repay their student loan until they are earning at least $40,000 per year. This amount will be adjusted upward based on family size. Also, the monthly affordable payment is capped at 10% of household income. To ensure that eligibility for repayment assistance keeps pace with the cost of living, the new zero-payment thresholds will be indexed to inflation annually.

Canada Student Loan and Canada Apprentice Loan borrowers may qualify for repayment assistance if:

  • they live in Canada, they are a reservist or the spouse of a reservist deployed abroad, or they are on an international internship for a year or less;
  • their loan is in repayment; and
  • they are up-to-date on their loan payments.

To receive repayment assistance, borrowers must apply online through the National Student Loans Service Centre (NSLSC), or by filling out the Repayment Assistance Plan application form. Borrowers can apply for repayment assistance at any time during repayment. They must re-apply every six months if they require ongoing repayment supports. 

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