Disabilities that Qualify for Student Loan Forgiveness

In Canada, the Repayment Assistance Plan (RAP) offers student loan forgiveness for individuals with disabilities. To qualify for this program, applicants must have a permanent disability that affects their ability to work and earn income. The disability must be verified by a qualified healthcare practitioner, such as a physician or psychologist.

Under the Repayment Assistance Plan (RAP) program, eligible borrowers can have their monthly student loan payments reduced or even eliminated altogether, depending on their income and disability status. Here are the types of student loans that may be eligible for forgiveness under the RAP program:

1. Canada Student Loans: Students who have received funding through the federal government’s Canada Student Loans program may be eligible for student loan forgiveness under the RAP program.

2. Canada Apprentice Loans: Students who have received funding through the federal government’s Canada Apprentice Loans program may also be eligible for student loan forgiveness under the RAP program.

3. Provincial Student Loans: Students who have received funding through a provincial or territorial government’s student loan program may be eligible for student loan forgiveness under that province’s RAP program. Each province has its own program, so it’s important to check the specific eligibility requirements for the province in which you reside.

See also: How to Apply for Student Loan Forgiveness in 2023

Here are the types of disabilities that may qualify for student loan forgiveness under the RAP program:

a. Permanent Disabilities: Applicants must have a permanent disability that is expected to last for the duration of their life; examples are stage IV or terminal cancer, chronic fibromyalgia, degenerative disc disease, bipolar disorder and so on. The disability must be verified by a qualified healthcare practitioner and must be related to the individual’s ability to work and earn income.

b. Severe Disabilities: Applicants with severe disabilities may qualify for more significant loan forgiveness than those with less severe disabilities. A severe disability is one that significantly limits an individual’s ability to perform daily activities and participate in the workforce.

c. Mental Health Disabilities: Mental health disabilities, such as depression, anxiety, and post-traumatic stress disorder (PTSD), may qualify for student loan forgiveness under the RAP program.

d. Physical Disabilities: Physical disabilities, such as chronic pain, mobility impairments, and visual or hearing impairments, may also qualify for student loan forgiveness under the RAP program.

To apply for student loan forgiveness under the RAP program, borrowers must complete an application form and provide proof of their disability status. They must also provide documentation of their income and other financial information, such as bank statements and tax returns.

If approved for the RAP program, borrowers may have their monthly loan payments reduced or eliminated altogether. The amount of loan forgiveness will depend on the severity of the borrower’s disability and their income level.

In addition to the RAP program, there are other forms of student loan forgiveness available for individuals with disabilities in Canada.

For example, the Permanent Disability Benefit (PDB) provides a lump-sum payment to individuals who have a permanent disability that affects their ability to work and earn income.

The amount of the payment depends on the individual’s disability status and the amount of their outstanding student loan debt.

Overall, individuals with permanent disabilities in Canada may be eligible for student loan forgiveness under the RAP program. To apply, they must have their disability verified by a qualified healthcare practitioner and provide documentation of their income and financial situation.

Other forms of student loan forgiveness, such as the PDB, may also be available depending on the individual’s disability status and financial circumstances.

See also: What is the Income Limit for FAFSA 2023?

Originally posted on May 7, 2023 @ 8:11 pm