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RAP

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=5916
Printed Date: 26/March/2026 at 10:42pm
Software Version: Web Wiz Forums 12.07 - https://www.webwizforums.com


Topic: RAP
Posted By: Lululuv
Subject: RAP
Date Posted: 19/September/2010 at 8:47am
Hello Everyone, 

I have a quick question. I had recently reapplied for RAP for the second time. The first time I was approved and only had to pay 313.74/month on my federal student loan and $0 on my provincial loan. I'm not quite sure how that worked considering my gross income for the month at the time was $3505. Mind you.. net, you bring home almost 1/2 less than that. Anyway, I have reapplied after the 6 months.. and my federal is now saying that my payment is $542/month and the provincial hadn't got back to me yet. When I use to "Repayment Ass. Calculator" online, it says my affordable monthly payments for federal are $430/month and $142/month for provincial. I'm just wondering how they came up with $542/month for federal this time around when it was so much less last time. And I do have in mind that my gross income is increased by $300/month as oppose to last time, but even with that, the "Repayment Ass. Calculator" says my "affordable payment" is less. And I was talking with a representative before I submitted the application, and she said pretty much the same as the repayment ass. calculator. Because my federal payment that they have calculated is pretty much my "affordable monthly payment" for both prov. and federal loans combined when I use the repayment ass. calculator. 
Just wondering if this happened to anyone else?? If the administrator happens to read this, could you possibly respond also. You seem very knowledgable of the topic. Thank-you very much!


Replies:
Posted By: PD
Date Posted: 09/April/2011 at 1:09pm
It could be as simple as they screwed up.  What a shock that would be.  LOL.  Appeal immediately.  Go through the executive customer service # at 1-866-788-0388 and ask them how it was calculated.  Here is the complicated formula that is used to determine how much you can afford to pay.  This use gross income not net.


where

A is the ratio, in relation to all loans referred to in paragraph (1)(b) and provincial student loans, of the borrower’s outstanding principal to the borrower’s outstanding principal plus the outstanding principal of those loans for which instalments are due for any spouse or common-law partner of the borrower,

X is the borrower’s monthly family income,

Y is the monthly income threshold for the borrower’s family size determined in accordance with Schedule 1,

Z is the monthly increment for the borrower’s family size determined in accordance with Schedule 1.

SCHEDULE 1

(Subsections 19(2) and 20(2))

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

This is cut and pasted right out of the actual laws. 




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