Canada does not have nationwide student loan forgiveness programs similar to some other countries like the United States. However, there are various student loan assistance programs and measures available to help borrowers manage their debt.
These may not offer complete loan forgiveness programs, but they can provide support in repaying loans. Please note that the availability and details of these programs may change over time, so it’s essential to verify the most up-to-date information with official sources.
Canada Student Loans forgiveness is offered by the Government of Canada to help students pay for post-secondary education at a designated college, university, or other post-secondary institution. It is offered to eligible post-secondary students in most provinces and territories full or part-time. We will mention some common student loan forgiveness programs in Canada:
List of Loan forgiveness in Canada
1a. Repayment Assistance Plan (RAP)
This program is offered by the federal government and aims to help borrowers who are struggling financially. Depending on your income and family size, the RAP can reduce or eliminate your monthly loan payments. If you have a low income, you may not be required to make any payments until your financial situation improves.
Repayment Assistance Plan can be in two ways depending on your income, you can qualify for reduced payment options or no payment at all options.
You can apply for repayment assistance as soon as you start to repay your student loans and anytime while in repayment. You must re-apply every 6 months to stay eligible.
If the government paid your principal interest payment while you are on RAP, you cannot receive another student’s grants or loans. You will pay your unpaid loans back before you can be eligible to apply for more. You do not need to make payments on existing student loans if you return to school.
B. Repayment Assitance plans Disabilities (RAP-D)
When you are on the RAP-D type, the government of Canada will pay down both the principal interest and any interest that your reduced monthly payments do not cover.
If your eligibility for repayment assistance continues, the balance of your loan will keep paying down until it is paid in full by the government.
Here the maximum amount of time a borrower can be in repayment assistance after leaving school is 15 years and 10 years for a person with a disability.
Benefits of the Repayment Assistance Plan, when approved Government of Canada, will:
- The Government of Canada will pay any interest owing on the federal part of your loan that your reduced payment might not cover.
- The government will start to pay down both the principal interest and any remaining interest you have after 60 months of RAP or 10 years after you finish school.
How to apply for repayment assistance
- Apply online through the National Student Loans Service Centre (NSLSC),
- Visit the Repayment Assistance Plan official website and fill out the application form.
Eligibility
You must live in Canada either
- As an international intern for a year or less
- As a reservist or spouse of a reservist deployed abroad.
2. Loan Forgiveness for family Doctore and Nurses
The Government of Canada offers Canada Student Loan forgiveness programs to eligible family doctors, residents in family medicine, nurse practitioners, and nurses who work in under-served rural or remote communities that lack the primary health care they need. This change will help more Canadians get the health care they deserve.
This loan forgiveness can only be applied to outstanding Canada Student Loan balances.
Before you apply for the loan forgiveness programs, you must have stayed a period of 12 consecutive months during which you have been employed or in practice and have provided in-person services for a minimum of 400 hours in an under-served rural or remote community.
Some provinces also offer student loan forgiveness programs for doctors and nurses who work in remote areas and their terms and condition for the loan varies by province.
Eligibility
- You must be an employer within the profession mentioned above
- You must provide in-person services for a minimum of 400 hours in the community you have been employed.
- You must have been employed for a whole year (12 consecutive months).
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3. Student Loan Forgiveness Program for veterinarians and veterinary Technologists
The Loan Forgiveness for Veterinarians and Veterinary Technologists program is intended to encourage veterinarians and veterinary technologists to practice in under-served rural or remote communities by forgiving a portion of Saskatchewan Student Loans.
The total amount of forgiveness an applicant will be eligible for is calculated on the value of the provincial student loan the day before the start date of the forgiveness period of the first application.
The amount of eligible forgiveness you could receive is calculated annually and is paid as a reduction to your provincial student loan. Veterinarians and veterinary technologists will receive forgiveness of one-fifth (20%) of their outstanding Student Loan debt, up to $4,000 annually, for up to five years, to a maximum of $20,000 in Saskatchewan.
Eligibility
- You must have a license to practice as a veterinarian
- You must be employed or working for an entire year in a designated community, and you also must be new to the profession or new to the community to be eligible.
- To be eligible you must start your current employment as an eligible veterinarian or veterinary technologist in a designated rural or remote community. it can be either of this full-time, part-time, or casual.
- You must have provided services for a minimum of 400 hours in that community or in combination with livestock services in designated communities.
4. Loan Forgiveness for Teachers
Loan forgiveness for teachers is a program that offers financial relief to educators by canceling or reducing their student loan debt. It aims to encourage individuals to enter and stay in the teaching profession, particularly in some high-need regions or low-income schools. The specific details and eligibility criteria can vary depending on the type of loan forgiveness program and the country or region in which the teacher works.
Some provinces have student loan forgiveness programs for educators who work in specific regions or teach high-demand subjects.
Eligibility
- You must have a license to practice as a Teacher
- You must be employed or working for an entire year in a designated community, and you also must be new to the profession or new to the community to be eligible.
- To be eligible you must start your current employment as an eligible Teacher in a designated rural or remote community. it can be either of this full-time, part-time, or casual.
- You must have provided services for a minimum of 400 hours in that community or in combination with livestock services in designated communities.
5. Canada Student Loan Disability Benefit Program
This loan is available to students with disabilities during their year of study. Individuals can apply at the same time as you apply for student aid with your province or territory.
In the 2022 to 2023 school year, Applicant could receive $4,000 per year. Applicants can also get this grant for each year of their studies as long as they still qualify for the grant. The school year runs from August to July.
The amount of the grant remains the same regardless of your assessed need. This could reduce or replace the need for a student loan.
Borrowers with permanent disabilities may be eligible for this loan forgiveness program.
Eligibility
- An applicant must have a financial need
- An applicant must be a student in a qualified program at a designated school
- An applicant must be a student with a disability recognized by the Canada Student Financial Assistance Program
- Applicants must provide an application, a document that shows that they have a disability.
6. Public Service Loan Forgiveness(PSLF) For federal Employees
If you work for the Canadian government or public sector, you may qualify for loan forgiveness after a certain number of years of service and on-time loan payments.
It is a federal program designed to encourage college graduates to enter into public service. It offers tax-free forgiveness of student loan debts for government and non-profit organization employees after 10 years of public service and 120 qualifying payments.
For eligibility visit the PSLF website.
7. Province-specific Program for loan forgiveness
Some provinces may have additional loan forgiveness programs or assistance programs, so it’s essential to check with your provincial or territorial student loan agency. check the website for more details about the province-specific loan forgiveness program.
8. Charitable and non-profit Loan forgiveness programs
Some non-profit organizations and charities may offer loan forgiveness programs or repayment assistance as part of their employee benefits. and this also varies from each province or territory. check on the charitable and nonprofit loan forgiveness programs in Canada for more details.
Conclusion: Always check the official website of the National Student Loans Service Centre (NSLSC) or the relevant provincial/territorial student aid agency for the latest information on loan forgiveness programs and assistance programs in Canada. Remember that managing student loan debt is an important responsibility, so staying informed about the available options and planning your finances accordingly can help you navigate your loan repayment journey more effectively.