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Couple of quick questions for RAP. I have a Canada Student loan only. I will have a job secured for August 2014, but don't have a job before then and will have very low income, so hoping for RAP assistance until then.
Q1) RAP reduces your payment partly, or down to zero. If you have very low income, does it cover the interest as well for the 6 months on RAP?
Q2) How hard is it to renew RAP for another 6 months, if your income stays low? As said, I have a job in August and can start paying regularly then, but until then I have very low income unless I can find a temporary job.
Q3) You cannot apply for RAP until 5 months into grace period, guessing it kicks in at the end of your grace period, if you are approved for it. However, you collect interest during the grace period. If you get RAP, can that cover the interest accumulated during grace period, or do you have to pay that?
Q4)For the RAP calculator, I have a loan about $30,000 and very low income. It is crunching out $0 total affordable payment and ~$300 "expected payment". Does that mean I would be paying $300 or does the $0 mean I pay nothing? Playing with the numbers there, there is no way to lower expected payment based on income, so I am guessing total affordable payment is what determines the RAP amount.
Q5)Another question related to interest in grace period. I am studying until the end of August, but apparently I was only confirmed until end of April with Canada Student Loans. I plan to upgrade that with the schedule 2 form, but I've accumulated interest during the summer since the end of April, as my grace period started then. If I update my enrollment before the end of the month (or potentially end of grace period October 31st), will they erase that interest or do I have to pay it?'
Why it is related to RAP is that, if I am going to have to pay this summer interest even with an update of my enrollment, then perhaps it makes more sense to not even bother updating my enrollment to Aug 31st and instead apply for RAP as I will qualify for that sooner (since I have a good chance of getting RAP). Because I will otherwise will have another 5 months of interest payments before I could get RAP (regardless of whether RAP covers grace period interest, if it does, all the better for applying for RAP now). However, if my confirment of enrollment update would clear the interest, then it makes sense to update it.
Thank you!
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