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Subject: Annual Updates to the Income Contingent Repayment (ICR) Plan Formula for 2015-Direct Loan Program

Publication Date: March 25, 2015

Posted Date: March 25, 2015

Subject: Annual Updates to the Income Contingent Repayment (ICR) Plan Formula for 2015-Direct Loan Program

FR Type: Notice

[Federal Register Volume 80, Number 57 (Wednesday, March 25, 2015)]
[Pages 15757-15760]
From the Federal Register Online via the Government Printing Office []
[FR Doc No: 2015-06704]



Annual Updates to the Income Contingent Repayment (ICR) Plan 
Formula for 2015--William D. Ford Federal Direct Loan Program

    Catalog of Federal Domestic Assistance (CFDA) Number: 84.063.

AGENCY: Federal Student Aid, Department of Education.

ACTION: Notice.


SUMMARY: The Secretary announces the annual updates to the ICR plan 
formula for 2015, as required by 34 CFR 685.209(b)(1)(ii)(A), to give 
notice to Direct Loan borrowers and the public regarding how monthly 
ICR payment amounts will be calculated for the 2015-2016 year.

DATES: The adjustments to the income percentage factors for the ICR 
plan formula contained in this notice are effective from July 1, 2015, 
to June 30, 2016, for any borrower who enters the ICR plan or has his 
or her monthly payment amount recalculated under the ICR plan during 
that period.

Education, 830 First Street NE., Room 113H2, Washington, DC 20202. 
Telephone: (202) 377-3681 or by email: .
    If you use a telecommunications device for the deaf (TDD) or a text 
telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-

    Under the William D. Ford Federal Direct Loan (Direct Loan) 
Program, borrowers may choose to repay their non-defaulted loans 
(Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans 
made to graduate or professional students, and Direct Consolidation 
Loans) under the ICR plan. The ICR plan bases the borrower's repayment 
amount on the borrower's income, family size, loan amount, and the 
interest rate applicable to each of the borrower's loans.
    A Direct Loan borrower who repays his or her loans under the ICR 
plan pays the lesser of: (1) The amount that he or she would pay over 
12 years with fixed payments multiplied by an income percentage factor 
or (2) 20 percent of discretionary income.
    Each year, to reflect changes in inflation, we adjust the income 
percentage factor used to calculate a borrower's ICR payment. We use 
the adjusted income percentage factors to calculate a borrower's 
monthly ICR payment amount when the borrower initially applies for the 
ICR plan or when the borrower submits his or her annual income 
documentation, as required under the ICR plan. This notice contains the 
adjusted income percentage factors for 2015, examples of how the 
monthly payment amount in ICR is calculated, and charts showing sample 
repayment amounts based on the adjusted ICR plan formula. This 
information is included in the following three attachments:

[[Page 15758]]

 Attachment 1--Income Percentage Factors for 2015
 Attachment 2--Examples of the Calculations of Monthly 
Repayment Amounts
 Attachment 3--Charts Showing Sample Repayment Amounts for 
Single and Married Borrowers

    In Attachment 1, to reflect changes in inflation, we have updated 
the income percentage factors that were published in the Federal 
Register on April 21, 2014 (79 FR 22107). Specifically, we have revised 
the table of income percentage factors by changing the dollar amounts 
of the incomes shown by a percentage equal to the estimated percentage 
change between the not-seasonally-adjusted Consumer Price Index for all 
urban consumers for December 2014 and December 2015.
    The income percentage factors reflected in Attachment 1 may cause a 
borrower's payments to be lower than they were in prior years, even if 
the borrower's income is the same as in the prior year. However, the 
revised repayment amount more accurately reflects the impact of 
inflation on the borrower's current ability to repay.
    Accessible Format: Individuals with disabilities can obtain this 
document in an accessible format (e.g., braille, large print, 
audiotape, or compact disc) on request to the contact person listed 
under FOR FURTHER INFORMATION CONTACT in this section of the notice.
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Last Modified: 03/24/2015