Income Contingent Repayment Parent Plus

An income contingent repayment icr is an income driven repayment option offered by the government for federal student loans.

Income contingent repayment parent plus. This program will generally limit payments to 20 of your discretionary income. Is student loan forgiveness through icr taxable. Income contingent repayment 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. The repayment process is quite straightforward for income contingent plan.

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. Consolidate your parent plus loans into a direct consolidation loan see details below enroll in an income contingent repayment icr plan and make 120 payments on the new consolidation loan you might be wondering why you must enroll in an icr plan in order to apply for pslf. Still if you have a parent plus loan income contingent repayment is. Borrowers are required to make monthly repayments that are based on their gross income family size and total student loan debt.

Icr caps monthly student loan payments at 20 of the borrower s discretionary income which is the difference between your gross income and a minimum level based on the federal poverty guideline for your state and family size. It does this by pegging the monthly payments to the borrower s income family size and total amount borrowed. Income contingent repayment icr is the oldest of the income driven repayment plans and it also may be the most expensive. Under this plan the amount of monthly installments is revised every year.

To get parent plus loan forgiveness through pslf you must first.