Student Loan Forgiveness Canada

Student Loan Forgiveness Canada

The Canadian government provides many programs that can help relieve the financial burden of student loans. The Repayment Assistance Plan (RAP) is one such program, which allows students to reduce their monthly payments by up to 30 percent for a period of up to three years. In addition, borrowers may qualify for interest relief if they have been out of school for less than six months and their combined income falls below $19,000 annually.


In order to qualify for student loan forgiveness, you must be a Canadian citizen or permanent resident. You must have been a resident of Canada for at least six months before applying for the program.

If you’re not yet eligible based on these criteria, don’t worry! If your spouse has an eligible student loan and was born in Canada or became a citizen while living here, they may be able to sponsor you so that you can apply. This is also true if they are sponsoring someone else who has lived in Canada for six months or longer—they can use their time as proof that they’ve been here long enough to qualify themselves!

If none of these options works out and your spouse isn’t Canadian either (or if there’s no spouse), there’s always hope: some other forms of immigration status will allow people from other countries who are legally staying here—but only temporarily—to apply as well. For example: refugees might be able to get automatic forgiveness under certain circumstances; Convention Refugees will need documentation proving their status before they can apply; etcetera…

Repayment Assistance Plan

If you’re struggling to make your student loan payments, consider applying for the Repayment Assistance Plan (RAP). RAP is a federal government program that allows borrowers who have a low income or are unemployed to delay making payments on their loans. If you qualify for the program, Canada Student Loans and Grants will pay back up to $210 per month of your interest-free loan until you find work again. To learn more about eligibility requirements, go here:

Ontario Student Assistance Program (OSAP) Repayment Assistance Plan

The Ontario Student Assistance Program (OSAP) Repayment Assistance Plan is a program that helps students with their OSAP loans. Students can apply for this plan if they are unable to make their payments on time, or if they have financial hardship.

The OSAP Repayment Assistance Plan is not a grant, it does not mean that you do not have to repay your student loan debt and it’s not an extension of your six-month grace period after graduation. The OSAP Repayment Assistance Plan only covers the interest on your outstanding student loan debt while you continue making regular monthly payments. If you qualify for the Ontario Student Grant and/or Bursary but still want to apply for the OSAP Repayment Assistance Plan so that your interest charges are covered during repayment, we recommend speaking with someone at either Student Financial Services or Student Awards & Financial Aid Services before filling out an application form.

Bankruptcy and Student Loans

Bankruptcy will not relieve you of your student loan debt. However, it can be used as a last resort when all other options have been exhausted. If you are considering bankruptcy and already have student loans, there are programs available that can help alleviate some of your financial burden.

For example, in Canada the Income-Based Repayment (IBR) plan allows for full forgiveness after 25 years if payments were made each month under this program.

There are programs to relieve the financial burden of student loans

Depending on your financial situation and current student loan balance, you may be eligible for a repayment assistance plan. These plans are managed by each province’s school authority and provide partial or full deferment of your student loan until you become more financially stable. Keep in mind that these programs can be changed at any time, so it’s always best to check with the government website for updates.

Bankruptcy is another option for those struggling with their student loans. There are two main ways people use bankruptcy to get rid of their debt: dischargeable debts and non-dischargeable debts. Dischargeable debts include things like medical expenses and credit card debt; however, many Canadians have found themselves still stuck paying off student loans when they go through bankruptcy (either because they didn’t qualify as dischargeable or because they failed the means test). In some cases, bankruptcy may even increase your federal debt if you’ve been making payments under an income-driven repayment plan like Income-Contingent Repayment Plan (ICRP). You shouldn’t file unless it’s absolutely necessary—and should certainly avoid using this method if at all possible!

You can find out more about the federal government’s repayment assistance plan here. If you’re looking for a private loan, check out our student loans section.

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