Canada Student Loans

Canada Student Loans has recently announced new relief rules for student loan borrowers who are facing financial duress.

Generally, students who incur student loans during their post-secondary studies must begin to repay their loans within six months of graduating, leaving school or transferring to part time studies.

 ​Repayment Assistance Program

You may qualify for repayment assistance if:

  • you reside in Canada (or are on an international internship or are a reservist deployed abroad);
  • at least six months have passed since you graduated or left school; and
  • your loans are up to date.

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.

Annual Gross Family Income Thresholds for Zero Payment under RAP by Family Size

The thresholds are as follows:

Family Size Family Income Threshold
1 $25,000
2 $39,052
3 $50,457
4 $59,512
5+ $67,825

​Students earning more than the applicable threshold may also be eligible for reduced payments.  Visit the Government of Canada website for more detailed information about the Repayment Assistance Plan.

Canada Student Grants

In addition, the federal government announced increased amounts for the Canada Student Grants, which is a non-repayable financial assistance. The amounts have been increased to:

  • $3,000 per year for full-time students from low income families
  • $1,200 per year for full-time students from middle income families
  • $1,800 per year for part-time students from low income families.

Visit the Government of Canada website for more detailed information on the Canada Student Grants.

If you are not eligible for relief under one of the programs noted above and are unable to meet the repayment requirements set by Canada Student Loans or a provincial student loan program, you may want to consider filing a Consumer Proposal or a bankruptcy. To discuss either option, call us for an appointment at (604) 605-3335.  It’s not too late.