Climbing Out of Student Loan Debt – Your Key to Financial Freedom
Want to learn new job skills without money worries? With Canada student loan repayment assistance, getting trained for a better career is exciting and less stressful. A little planning helps you focus on your classes instead of worrying about bills.
At Academy of Learning Career College, we know that paying for school is a big worry for most students. The good news is that repayment assistance can help make school more affordable. We want to help you learn about all the ways you can get help so you can feel good about going back to school.
Whether you’re studying in British Columbia or Alberta, Canada, student loan repayment assistance can make your monthly payments more manageable. Many students use online Canada student loan repayment calculators to see how this help could work for them. Don’t let worry about debt stop you from reaching your goals.
What Is Student Loan Repayment Assistance?
Repayment assistance helps people who struggle to make their loan payments on time. The government offers income-driven repayment options in Canada through two main plans:
Repayment Assistance Plan (RAP)
If you get approved for the Repayment Assistance Plan, the government will pay any interest on the federal part of your loan that your reduced payments don’t cover.
If you’ve been on the plan for more than 60 months or if it’s been 10 years since you finished school, the government will start to pay both the principal and any remaining interest.
Repayment Assistance Plan for Borrowers with Disabilities (RAP-D)
If you get approved for the Repayment Assistance Plan for Borrowers with Disabilities, the government will pay both the principal and any interest that your reduced payments don’t cover.
As long as you stay eligible for the plan, the government will keep paying until your loan is completely paid off.
Who Is Eligible for RAP and RAP-D?
The Repayment Assistance Plan and the Repayment Assistance Plan for Borrowers with Disabilities have the same basic requirements.
To be eligible for either program, you must:
- Live in Canada
- Have left college at least six months ago, meaning your loans are in repayment
- Be up-to-date on your loan payments
There is one exception to these rules. You might still qualify for either program if you don’t live in Canada, but you are:
- A reservist or spouse of a reservist deployed abroad, or
- On an international internship for a year or less
Before your application gets accepted, the government will check if your income falls within their limits. Although income thresholds might be different from province to province – which affects the provincial part of your loan – here are the income thresholds by family size:
| Family Size | Income Threshold |
|---|---|
| 1 | $3,334 |
| 2 | $3,911 |
| 3 | $4,790 |
| 4 | $5,530 |
| 5 | $6,183 |
| 6 | $6,773 |
| 7 | $7,316 |
Is There a Repayment Assistance Plan for B.C. Loans?
Many graduates wonder if they can get repayment assistance for B.C. loans. Unlike Canadian student loans (provided by the federal government), the provincial government gives out B.C. student loans. Provincial student loan assistance programs vary since loan terms depend on provincial laws.
The good news is that B.C. loans do qualify for the RAP and RAP-D repayment programs. The RAP application process online makes it easier to apply for either federal or provincial assistance.
When Can I Apply for Canada Student Loan Repayment Assistance?
You can apply for Canada student loan repayment assistance as soon as you have to start repaying your loans. Even if you’ve already begun making payments, you can still apply for help!
What Is the Maximum Time a Borrower Can Be in Repayment?
After leaving school, you can be in repayment for up to 15 years. If you have a disability, you can be in repayment for up to 10 years.
Important Information about Repayment Assistance Programs
No matter which plan you choose, you need to reapply every six months. If you don’t reapply, your support will end, and you’ll have to pay the full monthly amount. Student loan rehabilitation after default may be possible through these programs if you’ve fallen behind on payments.
Student Loan Forgiveness
To help graduates with their student loans, the Canadian government created a loan forgiveness program. This plan mainly helps doctors and nurses who work in rural communities.
From 2023 onwards, nurses can get up to $30,000 toward their loans, and doctors can get up to $60,000.
In the future, the federal government plans to:
- Expand the program to include more types of professionals
- Improve how they define “rural communities” so more people can benefit
- No More Interest
Starting April 1st, 2023, the government implemented student loan interest forgiveness in Canada for federal Canada Student Loans and Canada Apprentice Loans.
Unfortunately, provincial interest rates might still apply.
Improvements to the Repayment Assistance Plan
In the 2021 budget, the Canadian government changed the Repayment Assistance Plan. Now, if you live alone and make less than $40,000 a year, you can apply to stop making payments completely.
People who live with others can still apply for the plan, but the income limit goes up with each additional person in the household.
There’s been another big change too. In November 2022, the Canadian government reduced the maximum student loan repayment from 20% to 10% of a borrower’s household income.
Discover a New Way to Learn With AOLCC
At Academy of Learning Career College, we understand that education costs and student loans are major concerns. That’s why we offer flexible, career-focused programs designed to help you balance work and study. Many of our students continue earning income while gaining their qualifications, helping them manage loan repayments more effectively.
Want to join thousands of Canadians who are advancing their careers without overwhelming debt? Connect with us to explore programs in your province and discover the funding options that could make your educational journey more affordable.