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, Pay As You Earn, or Revised Pay As You Earn plans. Federal Family Education Loan (FFEL) and parent PLUS loans must be consolidated into a Direct Consolidation Loan to qualify. Under the ICR plan, your monthly payment amount will be calculated based on your discretionary income; the difference between your annual income and 100 percent of the poverty guideline for your family size and state of residence. Your monthly payment will be the lesser of the following; 20 percent of your discretionary income or the amount you would pay on a repayment plan with a fixed payment over the course of 12 years, adjusted according to your income. Use the Federal Student Loan Repayment Calculator to see if this plan is right for you.