Income Contingent Repayment Formula

Icr generally limits payments to 20 of your discretionary income.

Income contingent repayment formula. Income contingent repayment defines discretionary income as the amount by which adjusted gross income agi exceeds 100 of the poverty line. As mentioned above income contingent repayment icr is one of the four income driven repayment plans offered by the government. As used in this section other than as expressly provided for in paragraph c of this section i adjusted gross income agi means the borrower s adjusted gross income as reported to the internal revenue service. 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.

The other income driven repayment plans subtract 150 of the poverty line. Adjusted using a formula. This student loan pay as you earn calculator assumes a 3 annual income growth. The secretary announces the annual updates to the icr plan formula for 2017 as required by 34 cfr 685 209 b 1 ii a to give notice to direct loan borrowers and the public regarding how monthly icr payment amounts will be calculated for the 2017 2018 year.

Income contingent repayment also requires a greater percentage of discretionary income than income based repayment ibr pay as you earn repayment. The income contingent repayment plan uses a larger definition of discretionary income than the other income driven repayment plans. In this student loan income contingent repayment calculator enter your adjusted gross income your family size state of residence marital status and assumed annual income growth. The pay as you earn repayment plan is an income contingent repayment plan for eligible new borrowers.

Income contingent repayment icr caps payments at 20 of discretionary income and offers forgiveness after 25 years. Income contingent repayment icr is the oldest of the income driven repayment plans and it also may be the most expensive. An income contingent repayment icr is an income driven repayment option offered by the government for federal student loans. Revised pay as you earn repaye is also 10 of your discretionary income and provides forgiveness after 20 years 25 years for borrowers with grad school debt.

This program will generally limit payments to 20 of your discretionary income. The income contingent repayment plan is an income driven repayment option for federal student loans.