Repayment Assisstance Plan (RAP) Issues - qualifying for debt reduction

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qualifying for debt reduction

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=612
Printed Date: 26/March/2026 at 10:30pm
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Topic: qualifying for debt reduction

Posted By: danny
Subject: qualifying for debt reduction
Date Posted: 01/February/2004 at 10:41am

what do i need to qualify for debt reduction ?

Replies:

Posted By: SolveStudentDebt
Date Posted: 01/February/2004 at 10:55am

danny,

You would have to be in a severe long-tern financial crunch, and be able to fully substantiate this. Usually, people who are permanently disabled after the fact, or have been subdued by other crisis that disable one from paying. There is a lot of criteria involved in this procedure.

It depends on yoru partucular situation. The governments try as hard as possible to discourage people from diipping into this benefit.

Johnny

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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

http://www.solvestudentdebt.com" rel="nofollow - solvestudentdebt.com

Posted By: SolveStudentDebt
Date Posted: 01/February/2004 at 11:06am

danny,

Here is a section of the act that relates to disability and hardship...

http://laws.justice.gc.ca/fr/S-23/80759.html#article-13 - Permanent disability of borrower

13. (1) Where the Minister is satisfied, on the basis of prescribed information provided by or on behalf of a borrower, that the borrower, by reason of permanent disability, is or will be unable to repay a guaranteed student loan without exceptional hardship, taking into account the borrower's family income, all rights of any lender against the borrower in respect of that guaranteed student loan terminate, and the Minister shall pay to any lender whose rights against a borrower are terminated under this section the amount of principal and interest determined in prescribed manner to have been payable by the borrower at the time the borrower provided the Minister with the information required under this section.

Posted By: whydidibother
Date Posted: 02/February/2004 at 5:05am

One thing(there are many)that irks me about debt reduction is it is also based on your spouse's income as well. Why involve my husband in my loan when I didn't even know him when I took it out? His income of course puts me over the limit for debt reduction(I think gross income has to be $22,000 and under or something like that?) Not to mention the fact that my student loan is behind so they told me I can't apply anyways until I catch up. Has anyone ever applied and received debt reduction. Everyone I know either has a household income over the limit or is so far behind in payments that they don't qualify.

Posted By: markomeara
Date Posted: 02/February/2004 at 7:28am

Note: the regulations for debt reduction are changing.. check the canlearn site for updates. This was changed in last years budget but of course, a year later its not even implemented...

Mark

Posted By: danny
Date Posted: 12/May/2004 at 9:30pm

would like qualify me: 32k in the hole , single, criminal record , and i made 1500 bucks in the last ten years(not including student loans)

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Johnny save me!!!!!!!!!!!!!