A Smarter Way to Handle Student Loans in Canada: Repayment Assistance, Revised Terms, and Forgiveness
Student loan repayment can feel overwhelming on a good day — and with policies continuing to evolve, it’s more important than ever to know what support is available and what changes might affect you.
The Government of Canada offers two main repayment programs designed to support borrowers in different financial situations. Depending on your circumstances, these programs can help lower your monthly payments, pause or reduce interest, defer payments, or in some cases, provide loan forgiveness altogether.
Revising your repayment terms
Under standard terms, Canada Student Loans are typically repaid over a maximum of 114 months, or about 9.5 years. If you’re dealing with a temporary drop in income but expect to repay your loan in full, you may be able to adjust your repayment timeline. By contacting the Canada Student Loan office, you can request an extension of your amortization period to as long as 174 months, or roughly 14.5 years.
A Revision of Terms allows you to adjust your payments, so they better fit your budget. If you need some flexibility, you have a few options. You can temporarily extend your loan term for up to six months, which lowers your monthly payments during that period. Once the extension ends, your payments return to the original amount set out in your Consolidated Loan Agreement.
If longer-term relief is needed, you can permanently extend your repayment period, spreading your loan over more years to reduce your monthly payment. There’s also an option to make interest-only payments for up to 12 months over the life of your student loans, which can offer short-term breathing room.
It’s important to keep in mind that all these options mean you’ll still repay your loan in full, including interest. Extending your repayment period — even temporarily — increases the total amount of interest you’ll pay overtime, but it can make your monthly payments more manageable when you need it most.
Repayment Assistance Plan
If you’re having trouble keeping up with your student loan payments, there have been some recent updates to the Repayment Assistance Plan (RAP) and loan forgiveness programs that are worth your attention.
First, the good news: the Government of Canada offers student loan forgiveness for people who work in certain occupations and in eligible communities. You don’t have to wait until you’re done repaying to apply either. You can apply while you’re actively making payments, while you’re still in school, or even during your six-month non-repayment period after finishing your program.
To qualify, you need to have worked in an eligible occupation and community and been employed for a full year — that’s 12 consecutive months in most cases. There are a few exceptions: early childhood educators, psychologists, social workers, and teachers working in a school can qualify after 10 consecutive months, and this reduced timeline doesn’t apply to family medicine residents. You’ll also need to have provided at least 400 hours of in-person services, and your student loan must be in good standing, meaning your payments are up to date.
Once you’ve completed your year of eligible work, you have 90 days to submit your application. To keep receiving forgiveness, you’ll need to reapply each year. As long as the Canada Student Financial Assistance Program shows you may still be eligible, they’ll send you a reminder when it’s time to reapply.
It’s also important to know what doesn’t qualify. Loan forgiveness doesn’t apply to loans that have been converted into a line of credit, private student loans, or Ontario Medical Resident Loans.
One of the biggest recent changes is the expansion of eligible occupations. While seven occupations were included under the original program, 10 more have now been added. These include roles like dentists, dental hygienists, early childhood educators, midwives, personal support workers, pharmacists, physiotherapists, psychologists, social workers, and teachers — along with several nursing and medical roles. These newly added occupations became eligible as of December 31, 2025.
That said, there are exceptions within some occupations, and the definition of an “eligible community” can vary. Because of this, it’s important to review the official Canada Student Loans information and reach out to them directly if you have questions specific to your profession or location. You can find the full details here.
By understanding programs like the revising of your payment terms and repayment assistance plan, confirming whether you qualify for loan forgiveness, and staying aware of federal and provincial differences, you can take a more confident and informed approach to managing your student loan repayment.
When all other options are exhausted
For students and graduates who have tried repayment programs and forgiveness options but are still struggling, a Licensed Insolvency Trustee (LIT) can help. LITs are federally regulated professionals who provide confidential, judgment-free advice and can help you understand formal debt relief options such as consumer proposals or, in some cases, bankruptcy. A consultation can clarify whether your student loans qualify for relief and what path makes the most sense for your financial future.