With this strategy, debt repayment is prioritized based on interest rates, with the highest interest rate debt being tackled first. By focusing on high-interest debt, you minimize the total interest paid over time, often saving you money in the long run. While it may take longer to see progress compared to the snowball method, it’s often more cost-effective against total interest accumulation.

This approach involves paying off the smallest debts first while making minimum payments on larger debts. Once the smallest debt is paid off, the amount of repayment previously allocated to the paid off debt is added to the minimum payment of the next smallest debt, creating a snowball effect. This method can provide motivation by eliminating smaller debts and ultimately lowering the amount of debt accounts in total.

Debt Scenario:

• $5,000 credit card at 20% interest
• $12,000 Provincial OSAP at 7.95% interest
• $100,000 Line of Credit at 6.95% interest
• $28,000 Federal OSAP at 0% interest

Avalanche Method Repayment Sequence:

1. $5,000 credit card at 20% interest
2. $12,000 Provincial OSAP at 7.95% interest
3. $100,000 Line of Credit at 6.95% interest
4. $28,000 Federal OSAP at 0% interest

Snowball Method Repayment Sequence:

1. $5,000 credit card at 20% interest
2. $12,000 Provincial OSAP at 7.95% interest
3. $28,000 Federal OSAP at 0% interest
4. $100,000 Line of Credit at 6.95% interest

Depending on your income, you may qualify for reduced payments or no payments at all through the Repayment Assistance Plan (RAP).

You can apply for repayment assistance as soon as you start to repay your student loans and anytime while in repayment. You must re-apply every 6 months to stay eligible.

If approved for RAP, the Government of Canada will:

• pay any interest owing on the federal part of your loan that your reduced payment does not cover, and
• start to pay down both the principal and any remaining interest after 60 months of RAP or 10 years after you finish school
• Potential reduced payments
• Earning based repayment plan
• Government repayment assistance

For more information, please contact the NSLSC.

If you have a disability, you may qualify for the Repayment Assistance Plan for Borrowers with Disabilities (RAP-D).

This plan could lower your student loan payments for 6 months. You can also submit disability related expenses that may help lower costs. You may even qualify for no payments at all.

A part of the Repayment Assistance Plan (RAP), the Government of Canada has developed a stream for individuals with disabilities. If you have a disability and meet the eligibility criteria you may qualify for additional student loan repayment accommodations. For more information, please contact the NSLSC.

The Resident Loan Interest Relief Program (RLIRP) provides eligible medical school residents with financial assistance during a critical time of their professional practice. Under this program, Ontario medical residents are not required to pay principal or interest on government student loans granted from any Canadian jurisdiction during the period of a medical residency. In return, the participating residents agree to provide physician services in Ontario for five years following the completion of the medical residency.

• Loan repayment on both interest and principle
• Return to Service (ROS) Agreement after residency of physician services in Ontario for 5 years.

For more information, please contact the Resident Loan Interest Relief Program (RLIRP) office by email at rlirp@accerta.ca or by phone: 1-833-435-4151.

The Government of Canada offers Canada Student Loan forgiveness to eligible family doctors, residents in family medicine, nurse practitioners, and nurses who work in under-served rural or remote communities that lack the primary health care they need. This change will help more Canadians get the health care they deserve.

Loan forgiveness can only be applied to outstanding Canada Student Loan balances. Canada Student Loans that have been converted to a line of credit, private loan, or an Ontario Medical Resident Loan, are not eligible for loan forgiveness.

Canada Student Loan forgiveness applies only to the federal portion of a student loan. It does not apply to the provincial or territorial portion of a student loan.

• Up to $60,000 in loan forgiveness for practicing family physicians working in rural/remote communities with a population less than 30,000.
• Eligibility postal code lookup tool for designated rural or remote communities: https://tools.canlearn.ca/cslgs-scpse/cln-cln/lfnd-erpm/1-eng.do

The objective of the Northern and Rural Recruitment and Retention Initiative (NRRRI) is to attract physicians to establish a full-time practice in eligible underserviced communities.

The NRRRI offers taxable financial recruitment incentives to each eligible physician who establishes a full-time practice in an eligible community of the province. The grants range between $84,718 and $124,730 paid over a four-year period. The financial recruitment incentives will be awarded based on eligibility criteria and considerations related to total NRRRI budget allocations.

For more information, please contact the Ministry of Health by email at NHP@ontario.ca or by phone: 705-564-7280.