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Miami Student Loan Income-Contingent Repayment Attorney

Facing large sums of student loan debt can be intimidating. Students obtain funding to further their educations, planning that their post-graduation incomes will be worth the investment, and will be sufficient to pay off the debt in a timely fashion. But sometimes, things do not go as planned, and keeping up with monthly loan repayments can be difficult. Fortunately, there are income-driven repayment plans, such as the Income-Contingent Repayment plan, available for those with federal student loans. If you are having trouble repaying your federal student loans, you should speak with an experienced Miami income contingent repayment attorney today.

Eligibility

Unlike other federal repayment plans, there is no initial income eligibility requirement to qualify for an Income-Contingent Repayment plan (ICR plan). You may use this plan if you have any eligible federal student loans. The types of loans eligible for repayment under an ICR plan are:

  • Direct Subsidized Loans;
  • Direct Unsubsidized Loans;
  • Direct PLUS Loans made to graduate or professional students;
  • Direct Consolidation Loans not repaying any PLUS loans made to parents; and
  • Direct Consolidation Loans repaying PLUS loans made to parents.

Other types of loans are eligible if they have been consolidated. Eligible if consolidated means that if these types of loans have been consolidated, or combined, into a Direct Consolidation Loan, they may be repaid under an ICR plan. Loans that are eligible if consolidated include:

  • Direct PLUS Loans made to parents;
  • Subsidized Federal Stafford Loans;
  • Unsubsidized Federal Stafford Loans;
  • FFEL PLUS Loans made to graduate or professional students;
  • FFEL PLUS Loans made to parents;
  • FFEL Consolidation Loans not repaying any PLUS loans made to parents;
  • FFEL Consolidation Loans repaying PLUS loans made to parents; and
  • Federal Perkins Loans.

Repayment

Repayment for an ICR plan is based on income, family size, and amount of debt. The repayment amount is recalculated yearly. For an ICR plan, a monthly payment will be the lesser of:

  • 20 percent of your discretionary income; or
  • The amount you would pay on a repayment plan with a fixed payment, over 12 years, adjusted for your income.

Discretionary income means your income minus 150 percent of the poverty level, which takes into account the number of your dependents and your state of residence. In some cases, the monthly payment for an ICR plan will be greater than the amount you would pay under the 10-year Standard Repayment Plan.

Forgiveness

ICR plans have a 25-year repayment schedule. If the loans are not fully repaid by the end of the 25-year repayment period, the remaining loan balance is forgiven. Additionally, under the Public Service Loan Forgiveness Program, those who work in a qualifying public service job may have any remaining loan balance forgiven after ten years of repayment.

If you have federal student debt, and you are getting behind on your payments, it is essential to speak with an attorney before you go into default and suffer serious consequences. Please contact the experienced Miami student loan attorney Julia Kefalinos at (305) 856-2713 to schedule a consultation.