★ LOAN REPAYMENT · RAP · FORGIVENESS · ACCELERATED PAYOFF

Pay it off in 5 years. Or get $60,000 forgiven.

The Canada Student Loan default is a 10-year repayment plan. Smart graduates either accelerate ($100/mo extra cuts ~3 years off) OR work in eligible rural/health roles for $20-60k loan forgiveness. Both paths covered here.

★ ACCELERATED PAYOFF SIMULATOR ★

What's $100 extra a month worth?

STANDARD 10-YEAR$324/mo
Payoff120 months
Total interest$10,926
Total paid$38,926
ACCELERATED · +$100$424/mo
Payoff84 months
Total interest$7,648
Total paid$35,648
YOU SAVE$3,278+36 months freedom
★ REPAYMENT ASSISTANCE PLAN (RAP) ★

If income is low

What is RAP?

If your income is below a certain threshold, RAP REDUCES your monthly payment based on what you can actually afford. If income is very low, the government PAYS your interest. After 15 years on RAP, remaining balance may be forgiven.

★ INCOME TOO HIGH FOR RAP

RAP kicks in below ~$40k/yr single. Make regular payments + consider accelerated payoff above.

★ LOAN FORGIVENESS PROGRAMS ★

Federal programs · up to $60k forgiven

$20,000

Nurse Forgiveness

WHOFamily + community nurses
WHERERural/remote communities
YEARS5 yrs service
$60,000

Doctor Forgiveness

WHOFamily doctors (residents OK)
WHERERural/remote communities
YEARS5 yrs · $12k/yr forgiven
$15,000

Veterinarian Forgiveness

WHOVeterinarians
WHERERural communities
YEARS3 yrs service
Varies

Teacher (BC, AB, NB)

WHOTeachers
WHEREUnderserved areas (provincial)
YEARS5 yrs · varies by province

These are FEDERAL programs (Canada Student Loan only). Provincial portions have their own forgiveness — Ontario Loan Forgiveness for Health Care Workers, BC Loan Forgiveness Program, etc. Apply through NSLSC.

★ THE PRIORITY ORDER ★

If you have student loans + other debt

1
Pay minimums on everything

Always cover the minimum on all debts. Missed payments destroy credit.

2
Pay credit card debt first

19-21% interest on cards crushes student loan (5-7%) interest. Eliminate cards before paying extra on student loans.

3
Get employer match before student loans

If your job offers RRSP match, max it FIRST. Free money beats prepaying any debt.

4
Build 1-month emergency fund

Before prepaying loans, have a tiny safety net. Otherwise you put emergencies on cards = back at step 2.

5
Accelerate student loan payoff

Federal portion is interest-free. Provincial 5-7% rate. Worth paying extra IF you've handled steps 1-4.