When Does Repayment Begin for a Canada Apprentice Loan?

It is time to start repaying your Canada Apprentice Loan when:

  • you have completed your Red Seal Trade apprenticeship program;
  • you are no longer registered in a Red Seal Trade apprenticeship program;
  • you have reached your lifetime maximum of 312 weeks/6 years of payment-free status; or
  • your registration is not confirmed by your Apprenticeship End Date.
You are not required to make payments for the first 6 months after your Apprenticeship End Date. This is known as your non-repayment period.

What is the Non-Repayment Period?

The non-repayment period is the first six months after you cease to be an Apprentice. During this period, you are not required to make payments. However, you can choose to start making payments right away.

The amount you pay over and above your monthly payment is applied directly toward the principal amount of your loan. This decreases the length of time it will take you to repay your loan. 

At the end of the 6-month non-repayment period, you will be required to start making regular loan payments. We will notify you, using your preferred method of communication (online/paper), before your loan enters repayment. It is important that you keep your contact information on file up to date.

If you do not make contact, your loan payments may start to be automatically withdrawn after the 6-month non-repayment period from the same bank account where your loans were deposited (if you had arranged for direct deposit).

How Does Repayment Work?

Repayment begins at the end of the six-month non-repayment period. This is when you start making regular payments on your loan.

In the last month of your non-repayment period, you will receive a repayment notification in the mail regarding your Canada Apprentice Loan. If you do not receive anything by mail, make sure to contact us before your 6 month non-repayment period is over.

It is important to review the following loan details:

  • Amount owing;
  • Repayment start date;
  • Payment amount and frequency;
  • Payment date;
  • Payment method (pre-authorized debit or other);
  • How long it will take to pay back your loan.

Payments can be made via pre-authorized debit, cheque, online banking or telephone banking, or money order.

There are various options that can help make the repayment of your loan more suitable to your needs. For more information visit Customize Your Loan Repayment.

Loan Repayment Options

Need help in order to manage your apprentice loan debt? Having difficulty repaying your Canada Apprentice Loan? Missing payments can affect your credit rating and have serious and long-term consequences.

There are a variety of loan repayment options that might work better for you.

Repayment Assistance Plan (RAP)

By applying for RAP, you may qualify for zero or lowered payments for six-months. After the six-month period has ended you can reapply for another six-month period.

Learn more about the Repayment Assistance Plan

Repayment Assistance Plan – Do you have a disability? (RAP-D)

If you are eligible for the Repayment Assistance Plan and have a permanent disability, or a persistent or prolonged disability, you may qualify for the Repayment Assistance Plan for Borrowers with Disabilities.

In addition to a reduced monthly payment, or no monthly payment at all, you may be eligible for a further reduced payment amount. This will help with expenses related to your disability. You can apply for RAP-D using the regular RAP application.

Learn more about the benefits of RAP-D

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.


Severe Permanent Disability Benefit

If you have a severe permanent disability that prevents you from performing the daily activities necessary to participate in substantially gainful employment, and will remain with you for the rest of your life, you may be able to have your Canada Apprentice Loan cancelled through the Severe Permanent Disability Benefit.

To find out more and to see if you may be eligible, visit Severe Permanent Disability Benefit.

Customize Your Loan Repayment

You can ask to increase or decrease your monthly payment amount to better suit your budget by customizing your loan repayment.

If you have additional questions or you need help repaying your Canada Apprentice Loan, contact us.

Getting Your Canada Apprentice Loan Out of Collection

If you default on your Canada Apprentice Loan by missing payments for 270 days (9 months) or more, your loan will be sent to the Canada Revenue Agency (CRA) for collection.

You can bring your Canada Apprentice Loan back into good standing through loan rehabilitation.

If you have a judgment or legal action on your account, you may not be eligible to rehabilitate your Canada Apprentice Loan. Contact us to:

  • determine whether you are eligible for Canada Apprentice Loan Rehabilitation;
  • arrange a repayment schedule with the CRA;
  • repay all interest owed prior to April 1st 2023; and
  • make the equivalent of 2 monthly payments, at the agreed monthly payment rate set out in your repayment schedule with the CRA.

The CRA may allow you to make a lump sum payment combining the 2 monthly payments and the interest owed. Once you have completed your payments, you will need to inform us that you have fulfilled the requirements to rehabilitate your loan.

Note: Effective April 1st, 2023, the Government of Canada has permanently eliminated the accumulation of interest on all Canada Apprentice Loans including loans currently being repaid. You continue to be responsible to pay any interest that may have accrued on your loan before April 1, 2023.

Government of Canada Tax Credits for Apprentice Loans

You will receive a 15% tax credit on the interest you pay on your Canada Apprentice Loan each year prior to April 1st 2023.

Effective April 1st, 2023, the Government of Canada has permanently eliminated the accumulation of interest on all Canada Apprentice Loans including loans currently being repaid. You continue to be responsible to pay any interest that may have accrued on your loan before April 1, 2023.

The necessary documents will be sent to you before you file your taxes.

Date modified: