Simply put, Income Contingent Repayment (ICR) is an income based plan best suited for parents who have taken out Parent PLUS loans.  Like IBR, it bases your monthly payment on your yearly adjusted gross income (AGI), family size, and loan amount. Each year your payment is readjusted in accordance with the AGI as reported on your federal tax return. Thus, as your income rises or falls, so do your payments.

Also, as with IBR, after 25 years, any remaining balance on the loan will be forgiven! You may have to pay taxes on the amount forgiven, but the law may change by the time your payment plan ends.

To qualify, you must first have a Direct Loan, not one obtained through the Federal Family Education Loan (FFEL) program.  If you have a FFEL loan, you must consolidate them into a Direct Loan, being sure not to include any of the student's Stafford, Perkins, or Graduate PLUS loans.

If you live in New Jersey and are struggling with payment on federal student loan debt, I may be able to be of assistance. Just download this questionnaire, fill it out, and then fax it to me at 856-686-9911 or e-mail it to me. I will then review it and contact you to discuss options and possible representation.

Steven J. Richardson
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Bankruptcy, Collections, Student Loan, DUI and Traffic Court attorney in Woodbury, NJ.