Income Contingent Repayment Loan Forgiveness

Loan forgiveness after a certain repayment period 20 to 25 years.

Income contingent repayment loan forgiveness. Federal student loan borrowers have four income driven repayment options including pay as you earn paye revised pay as you earn repaye income based repayment ibr and income contingent repayment icr. Paye is one of the newest repayment plans and was introduced in the wake of president obama s student loan forgiveness program. 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. Continue reading to see how you may be eligible to get forgiveness towards your student loans.

All four of these income driven repayment options share certain characteristics including. Qualifying borrowers may receive forgiveness in as little as 10 years under the public service loan forgiveness or pslf program there s a strong positive case for income contingent loans. Borrowers who have not paid off their loans by the end of the repayment period typically 20 or 25 years have the outstanding balance forgiven. Income contingent repayment icr the income contingent repayment program is a student debt relief and loan forgiveness program with no income eligibility requirement.

Like all income driven repayment plans enrollees in icr can qualify for loan forgiveness. 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 best thing about paye is that it offers the lowest monthly payments capping your monthly payments at just 10 of discretionary income half the amount allowed compared to icr. This is different from public service loan forgiveness which is not taxable.

The easiest repayment plan to qualify for ibr will help you manage your student loan debt. What other options are there besides icr. A monthly payment determined by your income family size and debt load. Income contingent for borrowers using parent plus loans an icr plan can dramatically improve your situation.

Monthly payments for the icr program are based on the lesser of.