Student Loan Forgiveness in Canada

Repayment Assistance Plan (RAP)

If your payments aren't affordable, apply through the National Student Loans Service Centre. RAP sets an affordable payment from your family income and size; the government covers the rest. You reapply every six months.

Forgiveness for doctors, nurses and other professionals

Eligible family doctors, residents in family medicine, nurses and nurse practitioners working in designated rural or remote communities can have part of their federal student loan forgiven each year of service. Check the official program page for current amounts and the list of eligible professions and communities.

Disability and death

• Severe Permanent Disability Benefit: cancels federal student loans for qualifying borrowers
• RAP for Borrowers with a Permanent Disability: reduced payments
• Federal student loans are forgiven if the borrower dies

Provincial loans and bankruptcy

Provincial portions have their own rules — contact your provincial student aid office. Under the Bankruptcy and Insolvency Act, student debt survives bankruptcy or a consumer proposal unless you've been out of school at least 7 years, or 5 years with a court hardship order.

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Related guides

• Student Loan Debt in CanadaOptions for Canada Student Loans: the Repayment Assistance Plan, no federal interest since 2023, and when student loans can be released in a consumer proposal or bankruptcy (the 7-year rule).
• Consumer Proposal in Canada: How It WorksHow a consumer proposal works in Canada: who qualifies, the $250,000 limit, the 5-year maximum, the creditor vote, credit impact and what it costs.
• Bankruptcy in Canada: How It WorksHow personal bankruptcy works in Canada: the 9 or 21 month discharge, surplus income, exempt assets, which debts survive and how long it stays on your credit report.