Income Contingent Repayment Icr Plan Details

Will be the lesser of 20 of your discretionary income the difference between your total income and the poverty guidelines for your family size in the state in which you reside or the amount you would pay on a 12 year standard.

Income contingent repayment icr plan details. Income contingent repayment plan icr is quite similar to the income based repayment plan. If you first consolidate your loans your interest rate through icr is the weighted average of the interest rates on the loans included rounded up to the nearest one eighth of 1. Some of them have similar names which can get confusing. For more details on the icr program speak with an icr specialist by phone at 800 771.

There are income based repayment ibr programs that set your monthly payments at 15 percent of your discretionary income as long as you can prove at least partial financial hardship 10 percent if you were a new borrower on or after july 1 2014. Icr generally limits payments to 20 of your discretionary income. Income contingent repayment plan icr. There are several different programs to choose from for student loan consolidation.

Pslf program you might be eligible to have your loans forgiven as part of its 10 year repayment period. You only have to pay 10 of your discretionary income for 20 years on this idr plan. 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. The income contingent repayment plan is an income driven repayment option for federal student loans.

The only difference is that in order to be eligible for income contingent loan repayment the borrower is not required to be facing a partial financial hardship. 3 alternatives to the icr plan. Consider one of these options instead. Icr caps payments at 20 of your discretionary income and lasts 25 years.

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. Ffel loans are eligible but parent plus loans aren t. Not sure the income contingent repayment plan is right for you. An income contingent repayment icr plan is available to direct loan program borrowers.

It does this by pegging the monthly payments to the borrower s income family size and total amount borrowed. Income contingent repayment costs more each month than other income driven repayment plans.