Repayment Assisstance Plan (RAP) Issues

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RAP / IR Criteria

Printed From: CanadaStudentDebt.ca
Category: Government Program Problems
Forum Name: Repayment Assisstance Plan (RAP) Issues
Forum Description: Rules, regulations and problems (Formerly Interest Relief and Debt Reduction)
URL: https://www.canadastudentdebt.ca/forum_posts.asp?TID=5738
Printed Date: 26/March/2026 at 10:41pm
Software Version: Web Wiz Forums 12.07 - https://www.webwizforums.com

Topic: RAP / IR Criteria

Posted By: Spinney
Subject: RAP / IR Criteria
Date Posted: 01/April/2010 at 7:03am

I've been playing with the RAP estimator tool and I'm a bit confused about how and why the number of months of interest relief that have been used affects your expected payment. It just doesn't make sense.

For example I owe a little over $33,000 now. I finished school in April of 2004. Based on the 10 year repayment schedule I should be done in another 4 years. That's the purpose of the RAP program, isn't it? Helping people whose income isn't sufficient for them to pay the loan back within 10 years?

So why is it that when I enter any period of interest relief that my monthly expected payment drops? I still owe $33,000. That debt is still supposed to be repaid by April of 2014. Having my payments stopped for a while shouldn't be changing anything.

Replies:

Posted By: PD
Date Posted: 09/April/2011 at 12:55pm

The RAP program does not grandfather interest relief clients. The 15 year clock starts ticking from your first RAP application approval. The clock is only 10 years for the permanently disabled who automatically start at stage II of the program. The only way a non disabled client can have a 10 year clock (start at stage II ) is if he/she has already been in repayment for 10 years before the RAP program started. This is the link to the web page that explains this. In stage I the government only covers interest owing if you qualify and any payment you make go to principle. In stage II the government covers not only the interest but also principle if you qualify. The number of months you have received help under stage I determines when you get to stage II.

This is something that they do not disclose but the following table shows what how much money a family unit can earn before they have an affordable payment.

MONTHLY INCOME THRESHOLDS AND INCREMENTS

Family Size	Monthly Income Threshold	Monthly Increment
1	$1, 684	$250
2	$2, 631	$350
3	$3, 399	$425
4	$4, 009	$500
5 and over	$4, 569	$575

In effect if you are single and make less than $1684 a month your affordable payment is 0. For every $250 above that, the more you are deemed able to pay to a maximum of 20% of your income.