Income Contingent Repayment Icr Student Loans Uk

Income driven repayment plans are intended to be a safety net in case the borrower graduates with too much student loan debt.

Income contingent repayment icr student loans uk. Repaying during the coronavirus covid 19 outbreak. The income contingent repayment plan is one of the relief options available to student loan borrowers struggling to keep up with payments. From 6 april 2020 the repayment threshold for pre 2012 plan 1 loans will rise to 19 390. The student loans company slc that manages student loans for students studying in the uk makes sure that the repayment of loans only begins after the student has left higher education and is earning over a threshold of.

Income contingent repayment icr was the first income driven repayment plan. Sign in to your student loan repayment account if you already have one. Income threshold the earnings level at which borrowers liable to repay will. The income contingent repayment plan is an income driven repayment option for federal student loans.

Income contingent repayment icr loan introduced in 1998 repayment is 9 0 of income above the repayment threshold. Income contingent student loans for post 2012 plan 2 loans. As a reminder there are 5 income driven repayment plans that is payment plans based on your income. The icr plan calculates your monthly loan payment based on income and size of your family.

Income contingent repayment is the only income driven plan open to all federal direct loan borrowers including those with parent plus loans or consolidation loans that include parent plus loans. 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. This plan offers forgiveness on your remaining federal student loan balance after 25 years. 18 330 for plan 1 loans.

Income contingent repayment has been available for student loans in the united kingdom since 1998. Icr generally limits payments to 20 of your discretionary income. 20 of your discretionary income or the amount you d pay under a standard repayment plan with a 12 year repayment term. Read the guidance about repaying your student loan for more information on.

Not only does the icr plan protect less of your income from student loan payment but it also takes twice as much of that income.