Those who have federal student loans have until Friday (July 31) to apply for two key financial-aid programs. On Saturday (August 1), the Repayment Assistance Plan will replace the Interest Relief and Debt Reduction in Repayment programs.

Shamus Reid, B.C. chair of the Canadian Federation of Students, told the Straight that his organization is "cautiously optimistic" about the RAP.

"From what we’ve been told and what we’ve looked at so far, the intention is that nobody would be worse off under this program, and there would be some people who will be better off," Reid said.

The federal government expects 140,000 borrowers who are struggling to pay off their loans to enroll in the RAP in the coming year. Student-loan holders in the program will pay no more than 20 percent of their gross family income toward their federal debt.

Under the RAP, the federal government will take care of any interest not covered by a loan holder’s "affordable payment" for the first five years. After that, the government will continue to cover interest, as well as helping with the principal if it’s not covered by the borrower’s payments. According to the federal government, a loan would be settled within 15 years.

Under the Interest Relief program, eligible loan holders are able to defer interest payments on federal loans in six-month increments (up to a total of 54 months). The Debt Reduction in Repayment program allows eligible borrowers to receive up to three reductions (totalling a maximum of $26,000) to the principal of their federal loan. Borrowers in these two programs will remain in them until their benefit periods end.

Friday also marks the last day people with disabilities who hold B.C. student loans can apply for the Permanent Disabilities Benefits Program. Under this provincial program, eligible borrowers can see their loans forgiven in full.

Application forms for all three of the programs that are ending are available at www.debt101.ca/, a student-loan advice Web site.

Follow Miranda Nelson on Twitter @charenton_.