- Loan Repayment Basics
- Interest Free Period for Alberta Student Loans
- Flexible Repayment Options
- Repayment Assistance Plan (RAP)
- Repayment Assistance for Borrowers with a Permanent Disability
- Defaulted Loans
- Deceased Borrower
Repayment Assistance for Borrowers with a Permanent Disability
Reg.: Schedule 2, s. 34(5)
This is a version of the Repayment Assistance Plan that offers accelerated loan repayment for borrowers with a permanent disability. Borrowers who are on RAP-PD and are more than five years into repayment will be restricted from further federal funding until the balance owing is zero. Borrowers are eligible to receive further provincial funding.
RAP-PD allows a borrower’s balance owing to be reduced to zero after 10 years (instead of the usual 15 years for other borrowers), after which time no debt or restrictions will exist.
Alberta RAP-PD is not available on Alberta student loans that have already been returned to the Government of Alberta due to default. For loans that have been returned, borrowers must contact Service Alberta, Crown Debt Collections at 780-427-3244.
Borrowers must submit a new application every 6 months. One Repayment Assistance Plan for Borrowers with a Permanent Disability Application can be submitted to the National Student Loans Service Centre for RAP-PD consideration on both Canada and Alberta student loans.
Reg.: Schedule 2, s. 31(b)
Special Consideration is available on Alberta Student Loans only. This includes risk-shared, guaranteed and direct loans. The program removes a borrower’s Alberta Student Loans from active collection. A borrower may be eligible if all of the following apply:
- the borrower has a functional limitation caused by a physical or mental impairment that substantially limits their ability to earn a living,
- the borrower’s financial situation does not allow them to make their Alberta student loan payments, and
- the borrower’s financial resources (e.g., savings, RRSPs, bonds, etc.) are not enough to substantially reduce the balance of their Alberta student loan.
To apply for Special Consideration, a borrower can provide proof of approval by the Canada Student Loans Program for Severe Permanent Disability Benefit (SPDB).
If a borrower has not received approval for SPDB, the borrower must contact the Alberta Student Aid Service Centre to request the following forms to apply for Special Consideration:
- Application for Special Consideration for Alberta Student Funding (Form L)
- Income and Expense Statement (Form J), and
- Medical Questionnaire (Form K). Alberta Student Aid will accept copies of other similar medical documentation dated within the past 12 months, or an approval letter from a financial support group (such as Assured Income for the Severely Handicapped (AISH), Canada Pension Plan Disability Benefit).
Once completed, the forms must be submitted to Alberta Student Aid as per the instructions on the forms.
The borrower is responsible for keeping their loans in good standing at all times, even while waiting for a decision to be made on their Special Consideration application. The borrower may discuss changing repayment terms or the Repayment Assistance Plan with Alberta Student Aid Service Centre while awaiting a Special Consideration decision.
Once approved for Special Consideration, the debt is returned to the Government of Alberta (Service Alberta – Crown Debt Collections) to be closed and removed from active collections. If the borrower wishes to return to studies at a later time, they must meet rehabilitation requirements for the closed debt before a new student aid application will be considered. After new funding is issued to the student, the previous debt will be transferred back to the Alberta Student Aid Service Centre.
The Severe Permanent Disability Benefit (SPDB) is available on Canada Student Loans only, for borrowers with a severe permanent disability. Borrowers who qualify for SPDB have all of their Canada Student Loans forgiven and will be restricted from further federal funding. To apply, borrowers should contact the National Student Loans Service Centre.