March 25, 2022

What is an Income-Contingent Repayment Plan?


What is ICR?

Income Contingent Repayment, or ICR, is one of the 4 income-driven repayment plans available to federal student loan borrowers.

Borrower’s will typically have a higher monthly payment on ICR than on other plans but, depending on your situation, ICR may still be right for you.

Payments and Repayment Period

Borrower’s on a ICR will have a monthly repayment plan that is the lesser of:

  1. What the borrower would pay on a fixed monthly payment plan over 12 years, OR
  2. 20% of their discretionary income, divided by 12.

After 25 years, borrowers on the ICR plan will have any remaining balance forgiven. Any amount forgiven under ICR is considered taxable income.

Who is Eligible for ICR?

Virtually all federal loans are eligible for ICR, though some types of loans may need to be consolidated first.

ICR is the ONLY income-driven repayment plan available to parent PLUS loan borrowers or borrowers who have a consolidation loan that includes a parent PLUS loan.

Is the ICR Right for Me?

ICR is typically best for borrowers who have parent PLUS loans or a consolidation loan that includes parent PLUS loans.

If you’re eligible for other repayment options it’s generally advised that you enroll in a repayment plan other than ICR as your payments on ICR will typically be much higher than they would be on other plans.

It’s Not a Locked Commitment

Federal repayment plans do not lock you into the entire period. If you desire to pay off the loan earlier because you have the money, it is an option to take. You can also apply for a new repayment plan if you find yourself in better circumstances to pay the loan earlier.

Use Chipper for Lower Payments

Chipper can help you find a student loan repayment plan that actually fits into your budget. You simply fill out your information and link your student loan account for us to generate your options in seconds. We help the average student loan borrower save over $300 a month off their student loan monthly payment. Lowering your monthly payment plan can game changing for your personal finance and can be done in minutes! Sign up for Chipper today to get on track with your student loans.

Use Chipper for The Best Path to Forgiveness

Finding your path to student loan forgiveness is easier than ever before. Chipper helps members find better Income-Driven Repayment (IDR) plans every day. Once enrolled in an eligible repayment plan, we can help you explore your forgiveness options and understand your path towards forgiveness. Sign up with Chipper today and get on track with your student loans.

Use Chipper for Round-Ups

Paying off your student loans doesn’t have to be a long and painful journey. Round-Ups are a way to directly pay off your loans with your everyday spending! By tracking your linked spending account(s), we will calculate the rounded up amount from each transaction in a week (IE spending $4.28 would add $0.72 to the weekly amount). We then initiate a payment towards your student loan for the weekly amount. Get chipping away on your student loans with Chipper today.

Use Chipper for Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program was created to provide relief to borrowers aiding the public sector. Unfortunately, 30% of applicants are denied due to incorrect paperwork. We can help! Chipper was created to solve this issue by assisting borrowers in understanding their options as well as allowing forgiveness eligible users enroll into the best forgiveness program available. Sign up for Chipper today to see your student loan forgiveness options and get the forgiveness you deserve.

Use Chipper for Teacher Loan Forgiveness (TLF)

The Teacher Loan Forgiveness (TLF) program was created to enable teachers working in Title 1 schools to receive student loan forgiveness of up to $17,500 (depending on their teaching subject). Chipper has helped teachers from all over the country qualify for TLF program and can help you get the forgiveness you deserve today. Find out if you qualify for forgiveness in minutes with our employer search tool.

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