Income-Contingent Repayment Plan (ICR)
E572503
The Income-Contingent Repayment Plan (ICR) is a federal student loan repayment option that bases monthly payments on a borrower’s income, family size, and loan balance, potentially extending the repayment term and offering forgiveness of any remaining balance after a set period.
Observed surface forms (1)
| Surface form | Occurrences |
|---|---|
| Income-Based Repayment | 1 |
Statements (48)
| Predicate | Object |
|---|---|
| instanceOf |
federal student loan repayment plan
ⓘ
income-driven repayment plan ⓘ |
| administeredBy | U.S. Department of Education NERFINISHED ⓘ |
| appliesTo |
Direct Consolidation Loans
NERFINISHED
ⓘ
Direct Loans NERFINISHED ⓘ federal student loan borrowers ⓘ |
| availableFor | Parent PLUS Loans consolidated into a Direct Consolidation Loan ⓘ |
| basedOn |
borrower income
ⓘ
family size ⓘ loan balance ⓘ |
| benefitFor | borrowers with lower incomes relative to debt ⓘ |
| canBeSelectedThrough |
Federal Student Aid website
NERFINISHED
ⓘ
loan servicer ⓘ |
| category |
education finance policy
ⓘ
student financial aid ⓘ |
| comparedWith |
Income-Based Repayment (IBR)
ⓘ
Pay As You Earn (PAYE) NERFINISHED ⓘ Revised Pay As You Earn (REPAYE) NERFINISHED ⓘ Saving on a Valuable Education (SAVE) Plan NERFINISHED ⓘ |
| consequenceOfNonRecertification |
payment may revert to amount required to pay off loan in remaining term
ⓘ
unpaid interest may be capitalized subject to limits ⓘ |
| discretionaryIncomeDefinition | AGI minus 100 percent of the federal poverty guideline for family size and state ⓘ |
| documentationForm | income-driven repayment application ⓘ |
| eligibilityRequirement |
borrower must certify family size
ⓘ
borrower must have eligible Direct Loans ⓘ borrower must provide income documentation ⓘ |
| feature |
annual payment recalculation
ⓘ
extended repayment term ⓘ loan forgiveness after qualifying period ⓘ variable monthly payment amount ⓘ |
| forgivenessPeriod | 25 years of qualifying repayment ⓘ |
| forgivenessTaxTreatment | forgiven balance may be treated as taxable income under some federal tax rules ⓘ |
| goal |
make federal student loan payments more affordable
ⓘ
provide a path to loan forgiveness after extended repayment ⓘ |
| interestCapitalizationLimit | capitalized interest limited to 10 percent of original principal on most Direct Loans ⓘ |
| interestTreatment | unpaid interest may accrue when payment is less than interest ⓘ |
| introducedBy | U.S. federal government NERFINISHED ⓘ |
| jurisdiction |
United States of America
ⓘ
surface form:
United States
|
| notDirectlyAvailableFor | unconsolidated Parent PLUS Loans ⓘ |
| paymentAmount | lesser of 20 percent of discretionary income or 12-year adjusted amount ⓘ |
| paymentFormula |
20 percent of discretionary income
ⓘ
amount borrower would pay on a 12-year fixed plan adjusted for income ⓘ |
| paymentFrequency | monthly ⓘ |
| potentialDrawback |
repayment period may be longer than standard plan
ⓘ
total interest paid may be higher over time ⓘ |
| relationshipTo | Public Service Loan Forgiveness (PSLF) qualifying repayment plan NERFINISHED ⓘ |
| requires |
annual family size recertification
ⓘ
annual income recertification ⓘ |
Referenced by (2)
Full triples — surface form annotated when it differs from this entity's canonical label.
this entity surface form:
Income-Based Repayment