Student Debt Relief

1 August 2017

Student Debt Relief

Student Debt Relief

Are you struggling with Student Debt, there is the a new program being offered by the federal and/or provincial governments.  Repayment Assistance Plan (RAP) and the Repayment Assistance Plan for Borrowers with a Permanent Disability (RAP-PD), these programs were created to make it easier for former students to manage their student loans by reducing their monthly payment.

These plans cover up to ten six-month periods or 60 months during the 10 year period after you leave school.  These plans may give you the breathing room you require until you are settled in your career and earning a higher income.

There are Eligibility criteria, as follows:

  • you reside in Canada (or are on an international internship or are a reservist deployed abroad);
  • at least six months have passed since you graduated or left school; and
  • your loans are up to date.

Your monthly student loan payments would either be reduced or you would not have to make any payments, depending on your financial situation.  If you have a permanent disability, it could also depend on your permanent disability-related expenses, which include allowable uninsured medical expenses, special care and other expenses directly related to your permanent disability.

Enrolment is not automatic and you must re-apply for this plan every six months

To see if you qualify you for a RAP you’ll need to contact the National Student Loan Service Centre or visit Service

Keep in mind that the repayment of your student loan is also noted on your credit report and if payments are not made on time each month it will negatively affect your credit rating and your credit score.

Make the most of repayment assistance programs.

Powell Associates Ltd.

Licensed Insolvency Trustee