Everyone's financial goals are different, and there are other factors which might affect which repayment plans you are eligible for. Every plan displayed in the Savi tool, with the exception of Standard, is an income-driven plan. Any Income-Driven plan (IDR) would be eligible for PSLF. However, they are calculated differently. If your goal is the lowest monthly payment, select the lowest available plan to you. If your goal is to pay off your loans as quickly as possible (this might mean a higher payment), select the plan that is most aligned with that goal.
Important: ICR Is Being Phased Out
ICR (Income Contingent Repayment) is scheduled to sunset on July 1, 2028. If you are currently on ICR, you will need to switch to another plan before that date. Your options will be:
- Repayment Assistance Plan (RAP) - if eligible
- Income-Based Repayment (IBR)
- Standard Repayment
- Graduated Repayment
- Extended Repayment
Payments you made under ICR on or before June 30, 2028 will still count toward PSLF. Payments made on or after July 1, 2028 under ICR will not count toward PSLF.
ICR is not available to new borrowers with loans disbursed on or after July 1, 2026.
How ICR Calculates Your Payment
For borrowers who remain eligible, ICR calculates your monthly payment as the lesser of:
- 20% of your discretionary income, OR
- The amount you would pay on a fixed repayment plan over the course of 12 years, adjusted according to your income
Eligible Loan Types
Eligible:
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Direct PLUS Loans (graduate or professional students)
- Direct Consolidation Loans that do not contain any Parent PLUS Loans
- Direct Consolidation Loans that contain Parent PLUS Loans
Not eligible:
- Direct PLUS Loans borrowed as a parent
- Direct Loans made on or after July 1, 2026
Repayment Period
25 years. Any outstanding balance will be forgiven if you haven't repaid your loan in full after 25 years. The forgiveness amount will be taxable in the year it is claimed if you are not eligible for PSLF.
A Few Other Things to Consider About ICR
- If you're married, your spouse's income or loan debt will be considered only if you file a joint tax return or you choose to repay your Direct Loans jointly with your spouse.
Think carefully about your financial goals for your student loans, and which plan best aligns with those goals. Also note, for Income-Driven Repayment plans, you need to recertify your income every twelve months. The plan you select will only reflect the payment amount until you recertify your income again the following year. This means that if your income increases, your payments will also increase — and the same applies if your income decreases significantly.