Income Contingent Repayment Student Loans

There are no income hardship requirements which means anyone with a federal loan can qualify for the program.

Income contingent repayment student loans. Income contingent repayment is one of four income driven options for those with qualifying federal student loans. The cbo discusses various possible student loan reforms. The income contingent repayment plan is one of the relief options available to student loan borrowers struggling to keep up with payments. Student loan plan 1 these apply wherever you studied in the uk unless you have a plan 2 loan.

Student loan plan 2 you ll have a plan 2 loan if you re studying in england or wales and started your studies on or after 1 september 2012. For example removing the annual caps on repayment for income contingent plans so the borrower would just repay 10 15 of discretionary income without cap on the level of payment or redefining what discretionary income means requiring all student loans to be income contingent or require all student loans to be fixed payment. It does this by pegging the monthly payments to the borrower s income family size and total amount borrowed. The income contingent repayment plan is an income driven repayment option for federal student loans.

With the introduction of newer income driven repayment plans icr has dropped in. Here are some of the basic features of icr. 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. Icr generally limits payments to 20 of your discretionary income.

Still if you have a parent plus loan income contingent repayment is the only idr plan available to you. 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 icr plan calculates your monthly loan payment based on income and size of your family. 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.

Looking at your income and family size it s possible for servicers to adjust your repayment amount and schedule so that your monthly student loan payments are more affordable.