Overview

The Repayment Assistance Plan (RAP) and the Repayment Assistance Plan for Borrowers with a Permanent Disability (RAP-PD) make it easier for you to manage your apprentice loan debt. During the 6-month period of Repayment Assistance, 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 completed your apprenticeship; and
  • you are up to date on your loan payments.

If you have a permanent disability, you may qualify for RAP-PD if:

  • your permanent disability has been assessed and recognized by the Canada Student Loans Program; and
  • you are eligible for the Repayment Assistance Plan.

How it works

Stage 1

The Government of Canada will pay the interest owing that your revised payment does not cover. This 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 both the principal and interest that exceeds your reduced monthly payments. As long as you remain eligible for the 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 interest-free status on your existing apprentice loan if you begin training in a Red Seal trade again.

Repayment Assistance Plan for Borrowers with a Permanent Disability

If you have a permanent disability, your permanent 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 permanent disability.

The Government will cover both the principal and interest amounts that exceed your reduced monthly payments. As long as you remain eligible for the RAP-PD, the balance of your loan is gradually paid off and repayment obligations will not exceed 10 years after you end your apprenticeship.

 

Note: Once you have received RAP-PD benefits and 5 years have passed since you ended your apprenticeship you cannot receive a new loan until your existing loans are paid in full. However, you can return to interest-free status on your existing apprentice loan if you begin training in a Red Seal trade again.

Repayment Assistance Estimator

Enter your loan information in the (opens in a new window)Repayment Assistance Estimator to see if you are eligible to receive repayment assistance.

How to Apply

To apply for repayment assistance:

  • 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-PD and would like your disability-related expenses or exceptional expenses to be considered, you can complete and submit a RAP-PD Expense Form with your application. You can download the form using the toolbox or request that it be mailed to you.
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