Repayment Assistance Plan
Overview
The Repayment Assistance Plan (RAP) and the Repayment Assistance Plan for Borrowers with Disabilities (RAP-D) make it easier for you to manage your apprentice loan debt. During the 6-month period of RAP, your monthly apprentice loan payments will either be reduced or you will not have to make any payments, depending on your financial situation (earnings, family size, and outstanding loan debt).
Enrolment is not automatic and you must re-apply every 6 months.
Eligibility
You may qualify for the Repayment Assistance Plan if:
- you reside in Canada (or if you are on an international internship or you are a reservist deployed abroad);
- at least 6 months have passed since you ended your apprenticeship; and
- you are up to date on your loan payments.
If you have a permanent disability, or a persistent or prolonged disability, you may qualify for RAP-D if:
- your permanent disability or persistent or prolonged disability, has been assessed and recognized by the Canada Student Financial Assistance Program; and
- you are eligible for the Repayment Assistance Plan.
How it works
Stage 1
You will pay a lower monthly payment based on your current monthly income and the size of your family. Although you will have to reapply every six months, this benefit may last for up to 60 months during the 10-year period after you end your apprenticeship.
Stage 2
This Stage starts once you complete Stage 1, or once you have been in repayment for over 10 years after you end your apprenticeship.
During Stage 2, if you continue to experience difficulty meeting your repayment obligations, the government will begin to cover the principal that exceeds your reduced monthly payments. As long as you remain eligible for RAP, the balance of your loan is gradually paid off. Repayment obligations will not exceed 15 years after you end your apprenticeship.
Note: Once you have received a Stage 2 RAP period, you cannot receive a new loan until your existing loans are paid in full. However, you can return to payment-free status on your existing apprentice loan if you begin training in a Red Seal trade again.
Repayment Assistance Plan for Borrowers with Disabilities (RAP-D)
If you have a permanent disability, or a persistent or prolonged disability, your disability-related expenses may further reduce your revised monthly payment. Related expenses include uninsured medical expenses, special care and other expenses directly related to your disability.
The government will cover the amount that exceeds your reduced monthly payments. As long as you remain eligible for the RAP-D, the balance of your loan is gradually paid off and repayment obligations will not exceed 10 years after you end your apprenticeship.
Learn more about the benefits of RAP-D
Note: If you have a permanent disability, you can request and provide consent to be processed for RAP instead of RAP-D. You may only use this option prior to or within your first six-month period of RAP-D. This option is not available if you have already completed one or more period(s) of RAP-D.
Download the RAP-D Opt Out Form (PDF, 54 KB)
Verification of Disability
If this is your first time applying for RAP-D and you have not received any PD or PPD grants, you will need to complete a Verification of Disability form to confirm your eligibility. Download the form by clicking on the Verification of Disability form link below. Once completed, please mail it to the Canada Student Financial Assistance Program at the address provided on the form.
How to Apply
To apply for the Repayment Assistance Plan (RAP):
- Contact us to request that a RAP application be sent to you or download a RAP application form using the toolbox.
- Once you have completed and signed your application, you can upload it through your Canada Apprentice Loan online service account (you must register for an online account first if you do not have one already) or mail it to us.
- If you are applying for RAP-D and would like your disability-related expenses or exceptional expenses to be considered, you can complete and submit a RAP-D Expense Form with your application. You can download the form using the toolbox or request that it be mailed to you.