You Might Not Have to Make Payments at All: Canada's Repayment Assistance Plan, Explained

The Program Nobody Told You About

Most borrowers learn about their monthly payment from the National Student Loans Service Centre and assume that number is fixed. It is not. The Repayment Assistance Plan ties your required payment to your gross monthly family income and your family size. If your income is below the threshold for your family size, your required payment is $0. If it is above the threshold, your payment is capped at an affordable level. Either way, you stay in good standing, your credit is unaffected, and the program is administered by the same service centre that already holds your loan.

There is no penalty for applying and no limit on how many times you can be approved. You simply reapply every 6 months, because each approval covers a 6-month period.

The Zero-Payment Thresholds for 2026

This is the table that matters most. If your gross family income per month is at or below the amount for your family size, your affordable payment under RAP is $0.

These thresholds were reindexed on August 1, 2026, and the table above is current as of August 2026. They reindex every August 1, so check the canada.ca page each fall if you are near the line. Note that "family income" is gross (before tax) and includes your spouse or partner's income, and "family size" counts you, your spouse or partner, and dependent children. Per canada.ca, thresholds may differ for the provincial part of your loan.

To put the single-person threshold in perspective: $3,866 a month is about $46,392 a year gross. A lot of new graduates in their first year or two of work fall under that line, and many of them are making full payments anyway because nobody told them they could apply.

Above the Threshold: Payments Capped at 10% of Income

RAP is not all-or-nothing. If your gross monthly family income is above the threshold for your family size, you can still qualify for a reduced payment. The affordable payment is capped at 10% of your gross monthly family income, a cap that was lowered from 20% in November 2022. Below the threshold, the payment is $0; above it, the payment scales up but can never exceed that 10% ceiling.

A quick illustration of the ceiling: a family of four with $7,000 in gross monthly family income sits above its $6,412 threshold, so a payment is owed, but under RAP that payment can never exceed $700 a month, and the assessed amount is typically well below the ceiling. Compare that with a regular amortized payment on a large combined balance, which takes no account of income at all.

One important honesty note: the full federal formula that sets your exact reduced payment has components beyond the threshold check and the 10% cap. Any RAP payment figure you compute yourself, including in our calculators, should be treated as an estimate. The official number comes from your application through the service centre.

What Happens to Your Balance While You Are on RAP

A $0 or reduced payment naturally raises the question: is the balance just growing behind my back? Here is how the mechanics actually work, per the canada.ca RAP page.

While you are on RAP, the government pays any interest owing on the federal part of your loan that your reduced payment does not cover. Since the federal portion has charged 0% interest permanently since April 2023, this mainly matters for interest that accrued before that date, but the protection is there regardless.

Then it goes further. After 60 months on RAP, or once 10 years have passed since you left school, the government also starts paying down the principal that your reduced payments do not cover. From that point, your balance keeps shrinking even if your own payment is $0, until the loan is paid out. The maximum time anyone spends in repayment is 15 years. Under RAP-D, the version for borrowers with disabilities, the maximum is 10 years, and the government pays down principal and interest that reduced payments do not cover from the start.

One caveat if you plan to study again: if you return to school after the government has paid toward your principal under RAP, you cannot receive more student aid until those loans are repaid.

To be eligible, you must be living in Canada (with exceptions for reservists and certain international internships), your loans must be in repayment, meaning at least 6 months have passed since you left school, and your payments must be up to date. If you are still inside the 6-month non-repayment period, see our companion piece on when student loan repayment actually starts.

RAP Covers the Federal Portion Only

Outside Quebec and the territories, your government student loan is really two loans serviced together: a federal portion and a provincial portion. We break this down fully in our guide to why your Canada Student Loan is really two loans. RAP applies to the federal part. Assistance on the provincial part varies by province: most integrated provinces assess you for their own repayment assistance through the same application, but Prince Edward Island borrowers must apply separately with the province through StudentAid PEI.

How to Apply, and Why It Is Free

You apply online through your National Student Loans Service Centre (NSLSC) account. The application asks for your income and family information, approval covers 6 months, and you reapply every 6 months for as long as you need it. There is no fee at any step. Nobody should ever pay a third-party company to file a RAP application on their behalf; if a website or advisor asks for money to "enroll" you, walk away and apply directly.

In Quebec: the Deferred Payment Plan

Quebec runs its own student aid system through Aide financière aux études, so RAP does not apply to Quebec loans. The provincial equivalent is the Deferred payment plan (Quebec), which lets low-income AFE borrowers suspend payments for up to 60 months over a lifetime. The structure is different from RAP, but the core idea is the same: if your income is too low, you should not be draining your account to service a government student loan.

FAQ

Does being on RAP hurt my credit score?

No. RAP is a formal arrangement with the lender, not a missed payment. Your account stays in good standing while you are approved, which is precisely why applying beats silently skipping payments.

I earn just over the threshold. Is applying still worth it?

Usually yes. Above the threshold you may still qualify for a reduced payment capped at 10% of gross monthly family income. The only way to know the exact figure is to apply, and applying costs nothing.

Does RAP protection matter when choosing between a student loan and a line of credit?

It is one of the biggest differences between them. A bank line of credit has no equivalent: your payment is owed regardless of income. Our Student Loan vs Line of Credit Calculator includes RAP protection as a comparison row, alongside interest costs and tax credits.

Do I have to be in financial trouble to apply?

No. There is no hardship test beyond the income assessment itself. If your gross family income qualifies, you qualify, whether you are unemployed, working part time, or simply in a low-paying first job.

Is RAP the same thing as the 6-month grace period?

No. The non-repayment period is automatic for everyone during the first 6 months after leaving school, while RAP is an income-tested program you apply for once your loan enters repayment. In practice they chain together: if you finish school into a low-paying job, the grace period covers your first 6 months and a RAP application can take over from month seven.

What happens when my income goes up?

Each approval lasts 6 months. When you reapply, your new income is assessed, and your payment adjusts. If you no longer qualify, you go back to regular payments, with no penalty for the time you spent on RAP.

See Where Your Loan Actually Stands

Whether you qualify for $0 payments or want to plan a faster payoff, start with the numbers. Our calculator models the federal and provincial portions of your loan separately; RAP figures it shows are estimates.