Sunday, March 10, 2024

What Is Income Contingent Repayment?

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Income-Contingent Repayment, or ICR, is a repayment plan that bases the loan payments on a percentage of the borrower’s discretionary income, as opposed to the amount owed. ICR first became available in 1993, although it wasn’t used by borrowers until 1994.

ICR is one of four income-driven repayment plans. The others are Income-Based Repayment (IBR), Pay-As-You-Earn Repayment (PAYE) and Revised Pay-As-You-Earn Repayment (REPAYE). ICR generally has the highest monthly student loan payment of the four income-driven repayment plans.

ICR is only available for loans in the William D. Ford Federal Direct Loan Program (Direct Loans)….

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