Federal Student Loan Consulting

Repayment Plans, Programs, And Benefits /
Income-Contingent Repayment Plan (ICR)

Under this plan, any remaining loan balance is forgiven if your federal student loans aren't fully repaid at the end of the repayment period. Payments are recalculated each year are based on your updated income and family size. Your monthly payment will be the lesser of: 20 percent of discretionary income, or the amount you would pay on a repayment plan with a fixed payment over 12 years, adjusted according to your income. This plan has a repayment term of 240-300 months. This plan is the only available income-driven repayment option for parent PLUS loan borrowers. 

* Although PLUS loans made to parents can’t be repaid under any of the income-driven repayment plans (including the ICR Plan), parent borrowers may consolidate their Direct PLUS Loans or Federal PLUS Loans into a Direct Consolidation Loan and then repay the new consolidation loan under the ICR Plan (though not under any other income-driven plan).