1 Answers
MoonBeam
Updated:16/06/2024
The Income Contingent Repayment (ICR) plan is designed to provide flexibility for borrowers based on their income.
Eligibility Criteria for ICR Plans
- Borrower must have eligible federal student loans.
- Must demonstrate financial hardship.
- Must be in repayment status.
Question and Answer (QA)
| Question | Answer |
|---|---|
| Who qualifies for ICR plans? | Borrowers with eligible federal loans and facing financial hardship. |
| Do I need to provide proof of income? | Yes, borrowers must provide documentation of income to establish ICR payment amounts. |
| What types of loans are eligible? | Direct loans and some Federal Family Education Loans (FFEL). |
| What is the maximum payment amount? | Payments are calculated based on income and family size, generally not exceeding 20% of discretionary income. |
Statistics on ICR Plans
Recent data shows the following statistics regarding ICR plans:
| Category | Percentage |
|---|---|
| Borrowers in ICR Plans | 30% |
| Approval rate for ICR applications | 85% |
| Average monthly payment | $250 |
Mind Map for ICR Eligibility
Eligibility Factors:
- Federal Student Loans
- Direct Loans
- FFEL Loans
- Income Assessment
- Provide proof of income
- Adjustments based on family size
- Repayment Status
- Must not be in default
- Must be in repayment
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