Repayment amounts set for borrowers on Income-Contingent Repayment plan set for next year
April 15, 2021
For student loan borrowers on an income-contingent repayment plan, knowing how much their payment will be, no doubt, helps with budgeting.
In the April 14 Federal Register, the Secretary of Education announced the annual updates to the Income Contingent Repayment (ICR) plan formula for 2021. The Register announcement gives notice to borrowers and the public regarding how monthly ICR payment amounts will be calculated for the 2021-2022 year under the William D. Ford Federal Direct Loan (Direct Loan) Program.
The adjustments to the income percentage factors for the ICR plan formula contained in the Federal Register notice are applicable from July 1, 2021 to June 30, 2022, for any borrower who enters the ICR plan or has his or her monthly payment amount recalculated under the ICR plan during that period.