The repayment assistance plan (RAP) is designed to help you manage your student loans debt during periods of financial difficulty. RAP is based on family size, income, and the amount of permanent disability or provincial/territorial benefits you receive.
A repayment assistance plan can make things easier for you financially.
Getting a post-secondary education is a significant investment. It increases your chances of employment, helps you get better jobs, and gives you more freedom in deciding what you want to do. But sometimes, it can be hard to afford tuition and living expenses, especially if you don’t have help from your parents. Thankfully you can get financial assistance with student loans, scholarships, grants, and bursaries.
A repayment assistance plan is a program offered by the federal government to help borrowers with financial difficulties. It offers options for those struggling to repay their loan, including up to 3 years of interest relief and total loan forgiveness.
You may be eligible if you:
- Have a total debt load of more than 20% of your income after taxes (not including your spouse’s debt)
- Meet the income requirements of the program (based on your family size)
- Can show that you still have difficulty making ends meet after reducing your expenses as much as possible.
If you are struggling with your payments or think you will struggle with your payments in the future, you should apply for a Repayment Assistance Plan (RAP). A RAP is a government program that will reduce or eliminate your monthly loan payment and help borrowers stay on track with their federal student loan(s) while they get back on their feet financially. The program was designed to help borrowers avoid defaulting on their debt.