Income-Contingent Repayment (ICR)
Closing - sunsets July 1, 2028 · Income-driven · counts toward PSLF
Income-Contingent Repayment (ICR). Was the lesser of 20% of discretionary income (AGI minus 100% of the poverty guideline) or a 12-year fixed payment adjusted for income. Was 25 years. Transition rules apply ahead of the 2028 sunset - verify at studentaid.gov. General information, not advice.
Source: Federal Student Aid - OBBBA updates. Data as of June 2026.
General information, not financial or legal advice. Federal student loan rules are changing in 2025-2026 under the One Big Beautiful Bill Act - figures here are estimates from public sources and the final program rules are still being implemented. Always verify with your loan servicer and studentaid.gov. See our disclaimer.
How ICR works
Formula. Was the lesser of 20% of discretionary income (AGI minus 100% of the poverty guideline) or a 12-year fixed payment adjusted for income.
Interest. Standard IDR interest accrual; no general interest waiver.
Forgiveness. Was 25 years. Transition rules apply ahead of the 2028 sunset - verify at studentaid.gov.
Availability. Closed to new enrollees as of July 1, 2026 and sunsetting entirely by July 1, 2028. (ICR was the only IDR plan that consolidated Parent PLUS loans could access.)
Worked example
This plan's payment depends on income and family size - use the calculators to estimate yours.
Estimate only. Try the calculators with your own numbers.
Pros and cons
| Pros | Cons |
|---|---|
| Was the only IDR path for consolidated Parent PLUS loans | Highest IDR payment formula (20%, 100%-of-poverty offset) |
| Closed to new enrollees; sunsets by July 1, 2028 |
Eligibility
Closing. Existing ICR borrowers should compare IBR and RAP and switch by July 1, 2028.
Frequently asked questions
Does ICR count toward PSLF?
Yes. Payments under Income-Contingent Repayment (ICR) count toward Public Service Loan Forgiveness (120 qualifying payments while working full-time for a qualifying public-service employer).
When is loan forgiveness under ICR?
Was 25 years. Transition rules apply ahead of the 2028 sunset - verify at studentaid.gov.
Who can use ICR in 2026?
Closing. Existing ICR borrowers should compare IBR and RAP and switch by July 1, 2028.
Compare with other plans
- Repayment Assistance Plan (RAP) · New - available July 1, 2026
- New tiered Standard plan · New - default for loans on/after July 1, 2026
- Income-Based Repayment (IBR) · Remains available (existing borrowers)
- Standard 10-year plan · Continues for existing borrowers
- Graduated repayment plan · Continues for existing borrowers
- Extended repayment plan · Continues for existing borrowers (balance over $30,000)
- SAVE plan (Saving on a Valuable Education) · Closing - vacated by the courts; ending
- Pay As You Earn (PAYE) · Closing - sunsets July 1, 2028
Sources & accuracy
Plan rules from Federal Student Aid - OBBBA updates and the U.S. Dept of Education. Data as of June 2026. The 2025-2026 rules are still being implemented - this is general information, not financial or legal advice. Verify with your loan servicer and studentaid.gov. See our methodology and disclaimer.
Last updated: 2026-06-22