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🎓 Student Loan Tool

ICR Calculator
Income Contingent Repayment

Calculate your monthly payment under the federal ICR plan. Enter your AGI, family size, and loan balance to find your exact payment and 25-year forgiveness estimate.

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ICR Calculator: Income Contingent Repayment Explained

The Income Contingent Repayment (ICR) plan is one of the four main federal income-driven repayment (IDR) plans available to Direct Loan borrowers. Unlike the standard 10-year repayment plan — which sets a fixed monthly payment based on your loan balance — ICR adjusts your payment based on your income, family size, and loan balance. If your calculated ICR payment is lower than what you would owe under a standard plan, you pay less each month and any remaining balance is forgiven after 25 years.

How ICR Payments Are Calculated

Poverty Line (family of 1, 2024) = $15,060 (+$5,380 per additional person)

Discretionary Income = AGI − 100% × Federal Poverty Line

Option 1 = (Discretionary Income × 20%) ÷ 12

Option 2 = 12-Year Fixed Payment (based on loan balance and rate)

ICR Monthly Payment = min(Option 1, Option 2)

ICR is unique among IDR plans in that it uses 100% of the federal poverty guideline rather than 150% (used by IBR, PAYE, and SAVE). This means discretionary income is higher under ICR, which can result in higher payments compared to other IDR options — but it also makes ICR available to a wider range of borrowers, including Parent PLUS Loan holders after consolidation.

2024 Federal Poverty Guidelines Used in ICR

Family SizePoverty Line (2024)100% (ICR threshold)
1 person$15,060$15,060
2 people$20,440$20,440
3 people$25,820$25,820
4 people$31,200$31,200
5 people$36,580$36,580
6 people$41,960$41,960
7 people$47,340$47,340
8 people$52,720$52,720

ICR vs. Other IDR Plans

PlanPayment CapPoverty Line UsedForgiveness
ICR20%100%25 years
IBR (new borrowers)10%150%20 years
IBR (older borrowers)15%150%25 years
PAYE10%150%20 years
SAVE5–10%225%20–25 years

Who Should Use ICR?

Parent PLUS Loan Holders

ICR is the only IDR plan available for Parent PLUS Loans (after consolidation). If you borrowed for your child's education and have a high balance relative to income, ICR can significantly reduce your monthly obligation.

Low-Income Borrowers

If your income is close to or below the federal poverty line, your ICR payment could be $0. Any months with a $0 payment still count toward the 25-year forgiveness period.

PSLF Pursuers

Borrowers working in qualifying public service jobs can combine ICR with Public Service Loan Forgiveness, receiving full forgiveness after just 10 years of qualifying payments — tax-free.

High Debt-to-Income Borrowers

Graduates with large loan balances and modest starting salaries benefit most from ICR, as their calculated payment is much lower than the standard plan — and the remaining balance is forgiven after 25 years.

Frequently Asked Questions

What is Income Contingent Repayment (ICR)?▾
Income Contingent Repayment (ICR) is a federal income-driven repayment (IDR) plan for Direct Loan borrowers. Your monthly payment is set at the lesser of two options: 20% of your discretionary income divided by 12, or the amount you would pay on a fixed 12-year repayment plan adjusted for your income. ICR uses 100% of the federal poverty line to determine discretionary income, making it less generous than IBR (which uses 150%) but available to a broader set of borrowers.
Who qualifies for ICR?▾
All Direct Loan borrowers are eligible for ICR, including those with Direct PLUS Loans made to graduate or professional students. Importantly, ICR is the only income-driven repayment plan available to parents who have taken out Parent PLUS Loans — but only after those loans have been consolidated into a Direct Consolidation Loan. FFEL Loans must be consolidated into Direct Loans before becoming eligible.
When are ICR loans forgiven?▾
Under the ICR plan, any remaining loan balance is forgiven after 25 years (300 months) of qualifying payments. This is longer than IBR (20 years for new borrowers after July 1, 2014) and PAYE (20 years). Note that forgiven amounts under ICR may be treated as taxable income by the IRS in the year of forgiveness — this is sometimes called the "tax bomb." Borrowers pursuing Public Service Loan Forgiveness (PSLF) can receive forgiveness after just 10 years of qualifying payments under any IDR plan, including ICR.
Is ICR the same as IBR?▾
No. ICR (Income Contingent Repayment) and IBR (Income-Based Repayment) are different plans. The key differences: ICR defines discretionary income as AGI minus 100% of the federal poverty line, while IBR uses 150%. ICR caps payments at 20% of discretionary income; IBR caps at 10% (new borrowers) or 15% (older borrowers). ICR forgives after 25 years; IBR after 20 or 25 years depending on when you borrowed. IBR typically results in lower payments than ICR for most borrowers with similar incomes.
Can ICR save me money?▾
ICR can save money if your income is low relative to your debt, or if you have a large loan balance and plan to pursue loan forgiveness after 25 years (or 10 years via PSLF). For borrowers with high incomes and manageable debt, the standard 10-year plan may result in paying less total interest over the life of the loan. ICR is most beneficial for low-income borrowers, those with very high debt-to-income ratios, and Parent PLUS Loan holders who have consolidated into Direct Loans.

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