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Canada Student Loan Forgiveness
The federal government forgives Canada Student Loan debt for people who work in eligible occupations in rural and smaller communities. As of December 31, 2025 the program covers seventeen occupations, from family doctors and nurses to teachers, pharmacists, social workers and early childhood educators, in any rural area or community of 30,000 people or fewer.
Forgiveness only applies to government student loans. Across Smarter Loans personal loan applications from August 2025 to July 2026, borrowers citing education as the purpose requested an average of $3,278, and none of that private borrowing qualifies for any program on this page. If you are choosing between a government loan and a private one, the forgiveness routes below are a strong reason to exhaust the government option first.
How much is forgiven depends on the occupation, over a maximum of five years of service, as of August 30, 2026:
- Up to $60,000 for family doctors and family medicine residents, dentists, psychologists and pharmacists.
- Up to $30,000 for nurse practitioners, registered nurses, practical and psychiatric nurses, midwives, teachers, social workers and physiotherapists.
- Up to $15,000 for early childhood educators, dental hygienists and personal support workers.
To qualify you need a full year of work in the occupation (ten months for early childhood educators, psychologists, social workers and teachers working in a school), at least 400 hours of in-person service, and a loan in good standing. The five years of service do not have to be consecutive, and forgiveness applies to the federal part of your loan only, not the provincial part.
The Repayment Assistance Plan
The Repayment Assistance Plan is not forgiveness, and it is the program most struggling borrowers actually use. Depending on your income and family size, RAP reduces your monthly payment or sets it to zero, and the government pays the interest your reduced payment does not cover. After 60 months on RAP, or ten years after you leave school, the government begins paying down your principal as well, and keeps paying until the loan is gone. You re-apply every six months, and a separate stream for borrowers with disabilities pays down principal from the start.
A $20,000 federal balance, with and without forgiveness
| Route | Monthly payment | Total paid | Balance after 5 years |
| Standard repayment | $222.04 a month | $26,644.92 | $11,485.20 |
| Five years of qualifying rural work | $222.04 a month | $13,322.46 | $0 |
Illustrative only: forgiveness applies to the outstanding federal balance after five years of qualifying service, and eligibility follows the programs described above.
Forgiveness is worth more than any rate you could negotiate, which is why the eligibility questions above are worth answering before you refinance anything privately.
Illustrative example, not a quoted offer: a $20,000 federal student loan at 6.00% over 10 years, against the same loan with the $30,000 forgiveness tier applied after five years of qualifying work.
Provincial forgiveness and remission programs
Several provinces forgive or reduce the provincial part of student loans on top of the federal program. Verified as of August 30, 2026:
- British Columbia. The B.C. Loan Forgiveness Program forgives the B.C. portion of your loan at up to 20 percent per year for up to five years, for graduates in select in-demand occupations working in underserved communities or with children.
- Quebec. The Loan Remission Program reduces your student loan debt by 15 percent if you studied full-time, received a bursary each award year, and finished your program within the prescribed deadline.
- Nova Scotia. The Nova Scotia Student Loan Forgiveness Program forgives the provincial portion for graduates of Nova Scotia undergraduate programs, up to $20,400 over five years, with separate streams for certificates, diplomas and students with disabilities.
- Prince Edward Island. PEI runs a Debt Reduction Grant against PEI student loans for graduates who stay in the province. The provincial site publishes the current amounts; it could not be verified by automated check today, so confirm the figures there directly.
How to apply
For Canada Student Loan Forgiveness, apply through the National Student Loans Service Centre within 90 days of completing each year of eligible service, online or by mail. For RAP, apply through your NSLSC account as soon as payments are hard to make, and re-apply every six months. Provincial programs each have their own application through the provincial student aid office, and several apply automatically when you qualify.
If you need to borrow beyond your government loan, compare private options with care.
Frequently asked questions
Who qualifies for student loan forgiveness in Canada?
People working in one of seventeen eligible occupations in a rural area or a community of 30,000 or fewer, with a Canada Student Loan in good standing, a full year of service and 400 hours of in-person work. Doctors, dentists, psychologists and pharmacists can receive up to $60,000; nurses, teachers, midwives, social workers and physiotherapists up to $30,000; early childhood educators, dental hygienists and personal support workers up to $15,000.
Is the Repayment Assistance Plan the same as forgiveness?
No. RAP reduces or zeroes your monthly payment based on income while the government covers the interest, and after five years on the plan it starts covering principal too. Forgiveness cancels debt for eligible work; RAP makes any debt affordable while your income is low.
Does forgiveness cover private student debt?
No. Every program on this page applies to government student loans only. Bank loans, lines of credit and private lenders are outside all of them, which is a strong reason to exhaust government student aid before borrowing privately.
Sources
- Government of Canada, Canada Student Loan Forgiveness, for occupations, amounts and eligibility. Verified August 30, 2026.
- Government of Canada, Repayment Assistance Plan, for how RAP works. Verified August 30, 2026.
- StudentAid BC, Gouvernement du Quebec and Nova Scotia program pages linked above, each verified August 30, 2026.
- Smarter Loans personal loan applications, August 2025 to July 2026, for the education borrowing figure.
Related reading: back to school costs in Canada and student loans in Canada.
Written by:
The Smarter Loans Editorial Team produces in-depth, original content to help Canadians navigate borrowing, credit, and personal finance with confidence.
