Options to Reduce Federal Loan Payments - Income Contingent Tab

Income Contingent Repayment Plan (ICR)

Income Contingent Repayment is available if you need to make lower Direct Loan payments, but you do not qualify for the Income Based Repayment Plan or Pay As You Earn plans. Federal Family Education Loan (FFEL) and parent PLUS loans (unless consolidated into a Direct Consolidation Loan on or after July 1, 2006) are not eligible. Under this plan, your monthly payments are made for a maximum of 25 years and based on your adjusted gross income, your family size, and the total amount of your Direct Loans and the lesser of the amount you would pay if you repaid your loan in 12 years multiplied by an income percentage factor that changes with your annual income or 20 percent of your monthly discretionary income. Use the Federal Student Loan Repayment Calculator to see if this plan is right for you.