Repaying

Debt Reduction in Repayment

What is Debt Reduction in Repayment?

Debt reduction in repayment programs assist borrowers facing exceptional long-term financial difficulty. Successful applicants may receive reductions in their outstanding student loan principal, thereby lowering their monthly loan payments. 

How Does DRR Work?

Generally, DRR is available to assist students who have been out of full-time studies for at least five years and have exhausted all available periods of interest relief. If you receive assistance through a debt reduction in repayment program, a DRR reduction is applied against your outstanding student loan debt so that your monthly loan payments are reduced. Payments are not paid directly to you. Payments are sent to the financial institution holding your student loan(s).

DRR Programs

Both the Government of Ontario and the Government of Canada offer DRR programs. The type of student loan you hold will dictate whether you are eligible for the Ontario and/or Canada DRR program(s). 

• If you have a Canada Student Loan, you may apply to the Canada DRR program
• If you have an Ontario Student Loan, you may apply to the Ontario DRR program
• If you have a Canada-Ontario Integrated Student Loan only or in addition to a Canada Student Loan and/or an Ontario Student Loan, you should contact the National Student Loans Service Centre.