Income Contingent Repayment Fedloan

If you have a federal student loan you may qualify for a lower monthly payment by applying for an income driven repayment idr plan.

Income contingent repayment fedloan. Payment amounts based on your income and family size. Income driven repayment idr plan request. The income contingent repayment icr plan can help lower your monthly payments and give you a way to earn student loan forgiveness if you re eligible for this income driven repayment plan. As one of the oldest student loan repayment programs available the income contingent repayment icr plan uses your income to determine how much you can afford to pay towards your student loans each month.

The income contingent repayment icr plan uses your income family size and the total amount of eligible loan debt to determine your reduced monthly payments which are adjusted based on the lesser of 1 20 of your discretionary income or 2 the amount you would pay under a fixed repayment plan over the course of 12 years. The income contingent repayment icr plan is designed to make repaying education loans easier for students who intend to pursue jobs with lower salaries such as careers in public service. Ford federal direct loan direct loan program and federal family education loan ffel programs. For the revised pay as you earn repaye pay as you earn paye income based repayment ibr and income contingent repayment icr plans under the william d.

For example removing the annual caps on repayment for income contingent plans so the borrower would just repay 10 15 of discretionary income without cap on the level of payment or redefining what discretionary income means requiring all student loans to be income contingent or require all student loans to be fixed payment. This type of repayment arrangement is mostly used for student loans where the ability of the new graduate borrower to repay is usually limited by his or her income. However your payments may instead be capped by the amount of a fixed payment on your loans over a 12 year term if this monthly payment amount is less than 20 of discretionary income. 1845 0102 form approved expiration.

Icr generally limits payments to 20 of your discretionary income. Income contingent repayment is an arrangement for the repayment of a loan where the regular e g. The cbo discusses various possible student loan reforms. The icr plan comes with monthly repayments that are either 20 of your discretionary income or what you d pay on a fixed 12 year plan whichever is less.

The department of education doe forgives any remaining balance after 25 years. Revised pay as you earn. Income contingent repayment plan at a glance how does the federal income contingent repayment plan work. Income contingent repayment icr is the oldest of the.

The income contingent repayment plan is an income driven repayment option for federal student loans. Monthly payments as low as 0 per month. The student loans company slc that manages. Monthly amount to be paid by the borrower depends on his or her income.