The Repayment Assistance Plan is available to borrowers who are having difficulty paying back their student loan debt. The Plan makes it easier for student loan borrowers to manage their debt by paying back what they can reasonably afford.

Under the Plan:

• No borrower should have a repayment period of more than 15 years (or 10 years for borrowers with permanent disabilities).
• Affordable student loan payments are based on the borrower’s family income and family size.
• Borrowers will not make payments exceeding 20 percent of their family income towards loans covered by the Repayment Assistance Plan.

In certain cases borrowers may not have to make any student loan payments until their income increases. To estimate your monthly payment, use the new Repayment Assistance Estimator.

Student loan borrowers must apply for the Repayment Assistance Plan. Enrolment is not automatic.

The new Repayment Assistance Plan replaces the Interest Relief and Debt Reduction in Repayment measures. Borrowers who were approved for Interest Relief and Debt Reduction in Repayment before August 1, 2009, may remain on these programs until their approved period ends. However, they have the option to apply for the Repayment Assistance Plan at any time.

How does the Repayment Assistance Plan work?

The Repayment Assistance Plan has two stages to help student borrowers fully repay their student loan within 15 years (or 10 years for borrowers with permanent disabilities), depending on their financial circumstances.

Stage I: This stage applies to the first five years.

• For five years student loan borrowers who qualify will make affordable payments (or no payment) toward their loan principal. Paying the student loan principal first reduces the total debt.
• The Government of Canada will cover the interest amount owing that the borrower’s affordable payment does not cover.
• Borrowers will not make payments exceeding 20 percent of their income towards student loans covered by the Repayment Assistance Plan.
• Borrowers could be enrolled in this stage for up to 5 years during a 10 year period.
• Check with your province or territory to find out if your provincial or territorial student loans are covered under the Repayment Assistance Plan.

Stage II: This stage is available for borrowers who continue to experience financial difficulty. It starts once the borrower completes Stage I, or has been in repayment for 10 years after they leave school or complete their studies.

• The Government of Canada will continue to cover the interest and begin to cover a portion of the student loan principal amount (i.e. the difference between the affordable payment and the required payment).
• The balance of the loan should be gradually paid off so that no student loan debt remains after 15 years of leaving school (or 10 years for borrowers with a permanent disability).
• Throughout this period, the same eligibility criteria, application process and affordable payments as in Stage 1 will apply.

Am I eligible?

For the Repayment Assistance Plan you must:

• be a resident of Canada;
• have signed your Consolidated Student Loan Agreement; and
• be unable to afford the required monthly payment (as calculated by the Canada Student Loans Program on the basis of a standard loan repayment period).

How do I apply?

You must apply for the Repayment Assistance Plan. Enrolment is not automatic.

• Call the National Student Loans Service Centre (NSLSC) at 1-888-815-4514 for information about your eligibility for the Repayment Assistance Plan.
• Request an application from the NSLSC by phone or through their web site, or download the application form from the Forms and Publications section on our site.
• Complete and sign the application form, and submit it to the NSLSC with all the required supporting documentation.

Note: Student loan borrowers who received student loans before 2000 can ask for an application from their financial institution and submit the completed application to their financial institution.