The Income-Contingent Repayment (ICR) plan is a federal loan repayment plan that falls under the umbrella of income-driven repayment (IDR).
The monthly payment amount for ICR is based on the lesser of:
- 20% of your discretionary income, or
- What your monthly payment would be if you were paying off your loans on a fixed 12 year term (this amount is adjusted for income)
The remainder of your loans can be forgiven after 25 years of making payments in the ICR plan. The amount that’s forgiven may be taxed as income.