The Income-contingent Repayment (ICR) Program helps you lower your monthly student loan payments, and may offer complete student loan forgiveness, if you meet requirements for this income-driven repayment plan.
As one of the oldest student loan repayment programs available, the Income-contingent Repayment Plan is designed to help borrowers who don’t qualify for other loan repayment plans, but still want to take advantage of lower payments and/or reduced interest.
How to Qualify for the ICR Program
The conditions for the Income-contingent Repayment Program are less strict than many other income-driven repayment plans, allowing borrowers with federal student loans not accepted by other plans to seek approval. Loans eligible for the ICR Program include:
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Direct PLUS Loans made to graduate or professional students
- Consolidated Direct PLUS Loans made to your parents
- Direct Consolidation Loans not used to repay any PLUS Loans made to your parents
- Direct Consolidation Loans used to repay PLUS Loans made to your parents
- Consolidated Subsidized Federal Stafford Loans from the FFEL Program
- Consolidated Unsubsidized Federal Stafford Loans from the FFEL Program
- Consolidated FFEL PLUS Loans made to graduate or professional students
- Consolidated FFEL PLUS Loans made to your parents
- Consolidated FFEL Consolidation Loans not used to repay any PLUS loans made to your parents
- Consolidated FFEL Consolidation Loans used to repay PLUS Loans made to your parents
- Consolidated Federal Perkins Loans
There is no income requirement to apply for the Income-contingent Repayment Program. However, this may be an ideal option for borrowers who pursue careers with less income, such as those in teaching, public service or other rewarding professions.
Find out if you can take advantage of the ICR Program for free.
How the ICR Program Works
The Income-contingent Repayment (ICR) Program may reduce your monthly student loan payments in one of two ways if you’re approved. Depending on your income, or your current monthly payment on your federal student loans, the ICR Program requires you to pay either 20 percent of your discretionary income, or the amount you would pay over 12 years on a fixed repayment plan when adjusted for your income. Through the ICR Program, your payment would be the lesser of these two options.
After making qualifying payments for 25 years, the ICR Program typically offers student loan forgiveness on the remaining amount, meaning if you have any balance on your student loans at the end of this period, you could be done making student loan payments for good. Please note, as of right now any amount forgiven on your student loans may be considered taxable income at the end of the 25-year period.
For more details on the ICR Program, speak with an ICR specialist by phone at 800-771-6358