Federal student-loan rules are changing.Latest verified updates Reviewed October 11, 2026
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TRANSITION PLANNING

ICR: calculation, eligibility, and the 2028 sunset

ICR generally uses the lesser of 20% of discretionary income or an income-adjusted 12-year fixed payment. Current federal guidance says ICR will end no later than July 1, 2028.

Last reviewed October 11, 2026Independent educational guideOfficial source linked below
Start with official eligibility

Plan rules depend on loan type, disbursement dates, consolidation history, and borrower-specific facts. Confirm eligibility with Federal Student Aid before applying.

ICR is one of the older income-driven options, with a formula based on discretionary income or an income-adjusted 12-year fixed payment. It is scheduled to end no later than July 1, 2028. Because some Parent PLUS consolidation histories depend on precise dates, use the official guidance rather than applying a general summary to a complicated loan file.

Payment calculationThe lesser of 20% of discretionary income or an income-adjusted payment on a 12-year fixed plan.
Repayment period25 years
General availabilityEligible Direct Loans disbursed before July 1, 2026. Narrow Parent PLUS consolidation situations may have special rules.

How the payment is determined

ICR generally calculates the payment as the lesser of 20% of discretionary income or a payment under a 12-year fixed schedule adjusted according to income. The repayment period is generally 25 years. The official calculator should be used for personalized estimates.

Eligibility and Parent PLUS caution

ICR is generally available for eligible Direct Loans first disbursed before July 1, 2026. Certain FFEL loans may need Direct Consolidation. Parent PLUS loans cannot directly qualify, but some older consolidation situations have narrow exceptions. Consolidating after the cutoff can change access to plans.

Plan end date

Federal Student Aid states ICR will be retired no later than July 1, 2028. Borrowers relying on ICR should track official transition guidance and compare IBR or RAP where eligible, with extra care for Parent PLUS history.

Step-by-step: what to do next

  1. Confirm whether the loans are Direct Loans and identify any consolidation loan that includes Parent PLUS.
  2. Verify the first-disbursement date and any consolidation date.
  3. Use the official calculator to compare ICR with available plans before the 2028 transition.
  4. Check your StudentAid.gov inbox and servicer messages for requirements or deadlines.
  5. Retain application records and verify the processed repayment plan with the servicer.

Important cautions

  • ICR is scheduled to end no later than July 1, 2028.
  • Parent PLUS eligibility depends on specific loan and consolidation history.
  • Some loan types require consolidation, which may change rights and benefits.
  • Confirm before taking action that could alter qualifying payment counts.

Official source and next action

Use the official repayment-plan guidance before acting. Your servicer determines the payment due after processing and can confirm your account-specific status.

Open official Federal Student Aid guidance ↗

This page is educational material, not a determination of your eligibility or payment amount. Official source pages can change; revisit the linked source before relying on a deadline.