A repayment assistance plan (RAP) helps you when you are either unable to repay your loan or are late. If you are an authorized citizen of Canada and cannot pay your loan, the government of Canada helps you produce your loan with the help of this RAP.
Another such plan that helps Canadian citizens is called the Repayment Assistance plan for people with permanent disability (RAP-PD). But, we will be discussing only the RAP in this article.
Let’s read a bit more about the resistance assistance plan:
The resistance assistance plan is an excellent plan for borrowers to repay their debt when they cannot do so. This plan consists of two stages: Interest relief and debt reduction stages. With the help of these two stages, the government helps borrowers fully repay their loans within 15 years.
To avail of these offers, you must first apply to the RAP. It has several terms, each six months long. Once you have used the RAP application, your application can take six months to get approved by the authority.
How can you be eligible for the RAP?
The borrowers who can apply for the repay assistance plan should:
- Be a registered citizen of Canada.
- They must have student loans and should not be prohibited from RAP due to legal reasons.
- They should have a reasonable monthly salary but not reasonable enough for repaying their student loans.
Once the reasonable monthly salary is calculated, you’ll have to pay only for the next six months if it is less than the required amount.