The Department of Education has re-opened applications for income-driven repayment plans. Check out the three options available for federal borrowers.

Income-Contingent Repayment (ICR)—determines payments as either 20 percent of discretionary income or a fixed amount over 12 years, whichever is lower. Loan forgiveness is available after 25 years, and this is the only income-driven plan accessible to Parent PLUS Loan borrowers through consolidation.

The Education Department temporarily paused these applications after the U.S. Court of Appeals for the Eighth Circuit ruled that the agency should stop implementing the Biden administration’s Saving on a Valuable Education (SAVE) Plan and other parts of some income-driven repayment plans.