Income Contingent Repayment Plan Parent Plus Loan

Still if you have a parent plus loan income contingent repayment is.

Income contingent repayment plan parent plus loan. 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. To get parent plus loan forgiveness through pslf you must first. This path to forgiveness extends your payment period from 10 to 25 years and puts a cap on your monthly payments in relation to your discretionary income. By equal justice works staff writer march 23 2011.

Parent plus student loan forgiveness via the income contingent repayment plan. The federal government offers four types of income driven repayment plans but parent plus loans are only eligible for one. If you still have a balance left to pay after 25 years it will be forgiven. Parent plus loan forgiveness with an income contingent repayment plan icr the federal government offers four types of income driven repayment plans for student borrowers but icr is the only one that accepts parent plus loans.

Any student loan borrower that has a direct loan can choose to repay their loans in the income contingent repayment plan. Icr is not the best of the income driven repayment plans but it is the only option for parent plus loans. Income contingent loan repayment both ibr and icr offer an affordable monthly payment amount for student loans. With parent plus loans it s no different.

You must consolidate your loans before you can use income contingent repayment. Most federal loans allow you to qualify for forgiveness programs by using a combination or working the right job and getting your loan on the right repayment plan. 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. After consolidation parent plus loans become eligible for the income contingent repayment icr plan.

This is a federal program that can lower your monthly payments and offer loan forgiveness after 25 years for eligible. Income contingent repayment icr is the oldest of the income driven repayment plans and it also may be the most expensive. What types of loans are eligible for the income contingent repayment plan.