Income-Contingent Repayment also adjusts your monthly payments according to your income. You’ll either pay 20% of your discretionary income or what you’d pay on a fixed 12-year plan, whichever is less.
While ICR might not lower your payments as much as other plans, it does have one advantage. ICR is the only income-driven plan available to borrowers with Parent PLUS loans. If you have Parent PLUS loans, you can apply for ICR as long as you consolidate them first.
After 25 years of on-time payments, you’ll get the rest of your loan balance forgiven. Check the ICR calculator to see how your payments will change.