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How the Loan Forgiveness Program Actually Works

The federal government will forgive up to $60,000 of your student loans. Here's who qualifies, how much you get, and how to apply.

1.What Is the Canada Student Loan Forgiveness Program?

The Government of Canada offers loan forgiveness to healthcare and education professionals who work in eligible communities. The program forgives a portion of your federal Canada Student Loan each year for up to 5 years.

Key facts

2.Who Qualifies?

To be eligible, you must:

You can apply while you are:

You can work for more than one employer and in more than one eligible community during the year, as long as you meet all other requirements.

3.How Much Do You Get?

Tier 1: Up to $60,000 over 5 years

YearAmount Forgiven
Year 1$8,000
Year 2$10,000
Year 3$12,000
Year 4$14,000
Year 5$16,000
Total$60,000

Who qualifies: Family physicians and family medicine residents, dentists, pharmacists, psychologists.

Tier 2: Up to $30,000 over 5 years

YearAmount Forgiven
Year 1$4,000
Year 2$5,000
Year 3$6,000
Year 4$7,000
Year 5$8,000
Total$30,000

Who qualifies: Nurse practitioners, registered nurses, licensed/registered practical nurses, registered psychiatric nurses, midwives, teachers, social workers, physiotherapists.

Tier 3: Up to $15,000 over 5 years

YearAmount Forgiven
Year 1$2,000
Year 2$2,500
Year 3$3,000
Year 4$3,500
Year 5$4,000
Total$15,000

Who qualifies: Early childhood educators, dental hygienists, personal support workers.

Important: Forgiveness is applied to your federal loan principal balance. If your remaining federal loan balance is less than the scheduled forgiveness amount, you will only receive forgiveness up to your remaining balance. For example, if you have $5,000 remaining in federal loans and the schedule says $8,000, you receive $5,000.

4.Which Communities Count?

An eligible community is defined as:

To check if a specific community is eligible, use the Government of Canada's postal code lookup tool: Postal Code Lookup Tool

Note: The lookup tool is periodically updated and may not always reflect the most current postal codes. If you have questions about eligibility, contact the National Student Loans Service Centre (NSLSC) at 1-888-815-4514 before making employment decisions.

Use our interactive map to see all eligible communities and your personalized financial advantage. Explore the map →

5.The Fine Print

Your 5 years do not need to be consecutive.

You can work in an eligible community for a year, take time away, and return later. Each year of eligible service counts toward your 5-year maximum regardless of gaps.

You can switch communities.

You can work in different eligible communities in different years, or even work in multiple communities within the same year, as long as you meet the 400-hour requirement.

You can switch occupations.

If you change from one eligible occupation to another, you can still receive forgiveness. The total maximum is 5 years regardless of occupation changes. The forgiveness amount for each year is based on the occupation you worked in during that year's period.

You must keep making your regular loan payments.

Forgiveness does not pause your repayment obligations. You must continue making your regular monthly payments and keep your loan in good standing. Forgiveness is applied to your principal balance after each eligible year of service.

Breaks in service.

If you take a break of more than one month during your 12-month service period, you may still be eligible if the break was for:

  • Employment Insurance benefits (maternity, parental, sickness, compassionate care, or family caregiver)
  • Taking care of a family member due to illness or disability
  • Pregnancy or childbirth
  • Caring for a newborn or newly adopted child

The 400-hour minimum.

You must provide at least 400 hours of in-person service in eligible communities during each 12-month period. If you are prevented from reaching 400 hours due to one of the approved leave types listed above, you may still qualify.

6.How to Apply

  1. Complete a full year (12 consecutive months) of eligible service in an eligible community
  2. Apply within 90 days of completing your year of service
  3. You must re-apply each year. Forgiveness is not automatic.

For pharmacists, dentists, physiotherapists, psychologists, teachers, social workers, early childhood educators, dental hygienists, midwives, and personal support workers

(Newly eligible as of December 31, 2025)

  • You must currently apply by mail
  • Applications for newly eligible occupations were not reviewed until March 2026
  • Online applications are expected to be available soon
  • Download the application form: Canada Student Loan Forgiveness Application (PDF)

For doctors and nurses (originally eligible occupations)

You can apply online through your secure NSLSC account via My Service Canada Account (MSCA).

What you need to apply

7.Provincial Programs That Can Stack

The federal program forgives your federal loan portion. Some provinces offer additional forgiveness on the provincial portion of your loan.

British Columbia: B.C. Loan Forgiveness Program

  • Forgives up to 20% of your outstanding B.C. student loan balance per year for up to 5 years
  • After 5 years, your B.C. student loan can be fully forgiven
  • Requires employment at a publicly-funded facility in an eligible underserved community in B.C.
  • Eligible occupations include: nurses, physicians, midwives, pharmacists (and others)
Important: This program requires working at a publicly-funded facility (hospital, health authority clinic, etc.). Pharmacists working in private/retail pharmacy settings may not qualify.
B.C. Loan Forgiveness Program details →

Saskatchewan

Saskatchewan has loan forgiveness programs for health professionals working in rural areas. Details vary, so contact Saskatchewan Student Aid for current information.

Other provinces

Manitoba, Ontario, Newfoundland and Labrador, and other provinces have various grant, bursary, and incentive programs for healthcare workers in underserved areas. These vary by province and may change. Check with your provincial student aid office.

Note about Quebec: Quebec has its own student financial assistance program (Aide financière aux études) and does not participate in the Canada Student Loans Program in the same way as other provinces. Quebec residents should contact AFE for information about provincial programs.
When federal and provincial forgiveness stack, the total benefit can be substantial. For example, a pharmacist in an eligible B.C. community working at a publicly-funded facility could potentially receive up to $60,000 in federal forgiveness plus forgiveness of their entire B.C. provincial loan over 5 years.

8.What This Actually Looks Like

Consider a pharmacist who graduated with $90,000 in student debt (approximately $54,000 federal, $36,000 provincial) and currently works in Toronto.

Working in Toronto

Salary
$105,000
Rent
-$2,400
Groceries
-$450
Loan payment
-$845
Monthly savings
~$2,785

Eligible community

Salary
Comparable
Rent
$0 (employer-provided)
Food
$0 (food allowance)
Loan payment
-$845
Monthly savings
~$6,600
Monthly advantage
~$3,800
Federal loan forgiveness (3-4 years)
~$30,000–$38,000
Total 3-year financial advantage
$150,000–$170,000+

That's the difference between paying off student debt over 10 years versus being debt-free in under 3 years, while saving enough for a down payment on a home.

Every situation is different. Use our interactive map to see the numbers for your specific debt, profession, and community of interest.

9.Common Questions

Does forgiveness apply to my entire student loan?+

No. It applies only to the federal portion of your Canada Student Loan. It does not apply to the provincial or territorial portion, private loans, or lines of credit. However, some provinces offer separate forgiveness on the provincial portion.

What if I have very little federal debt left?+

Forgiveness cannot exceed your remaining federal loan balance. If your federal balance is less than the scheduled forgiveness amount, you receive only what remains.

Can I receive forgiveness if I'm still in school?+

Yes. You can apply while studying, in repayment, or in your 6-month non-repayment period.

What happens if I leave the eligible community partway through a year?+

You need to complete 12 consecutive months of service and provide at least 400 hours of in-person service to qualify for that year's forgiveness. If you leave early, you may not qualify for that period.

Is the forgiveness taxable?+

Student loan forgiveness under the Canada Student Loans Act is generally not considered taxable income. However, consult a tax professional for advice specific to your situation.

Can my employer be a private business, or does it have to be publicly funded?+

For the federal program, you can work for any employer type (private practice, retail pharmacy, hospital, clinic) as long as you meet the other eligibility requirements. Some provincial programs (like B.C.'s) require employment at a publicly-funded facility.

10.Official Links

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