Student Loan Repayment Assistance Plan Thresholds in Canada

Under the Repayment Assistance Plan, a single borrower with a monthly gross family income of $3,788 or less makes no payment on their Canada Student Loan for six months. The zero-payment threshold rises with family size, from $3,788 for one person to $8,313 for a family of seven or more.

The Repayment Assistance Plan (RAP) is a federal program that reduces or eliminates the monthly payment on Canada Student Loans for borrowers whose income is low relative to their family size. Depending on your income, you may qualify for reduced payments or no payments at all, and a borrower whose income falls below the threshold for their family size pays nothing for a six-month period.

The zero-payment threshold

The plan uses monthly gross family income thresholds by family size. If your family income is less than the threshold for your family size, you may not need to make payments on your student loans for six months. A single borrower reaches the zero-payment level at $3,788 per month; the threshold is $4,444 for a family of two, $5,444 for three, $6,283 for four, $7,026 for five, $7,696 for six, and $8,313 for a family of seven or more.

Reduced payments above the threshold

If you earn more than the threshold shown for your family size, you may still qualify for reduced monthly payments rather than the full amount. The affordable payment is calculated from your monthly family income, the threshold for your family size, and a monthly increment, so the payment rises gradually as income increases. Borrowers with a permanent disability may also have disability-related expenses taken into account.

How long it lasts and how to apply

RAP is granted in six-month periods. After the six-month period ends you can reapply for another six-month period, as long as you continue to meet the eligibility rules. You apply for RAP through your online account with the National Student Loans Service Centre (NSLSC).

Thresholds change every year

The thresholds are not fixed. The Canada Student Financial Assistance Regulations provide that the monthly income thresholds are adjusted on August 1 of each year by the annual percentage increase in the Consumer Price Index for the previous calendar year, rounded to the nearest dollar. If the calculated increase would reduce the thresholds, they stay at the previous year's level. Provincial student aid programs may use different thresholds for the provincial part of a loan, so check your provincial program as well.