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)] [Notices] [Pages 15757-15760] From the Federal Register Online via the Government Printing Office [www.gpo.gov] [FR Doc No: 2015-06704] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF EDUCATION 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. FOR FURTHER INFORMATION CONTACT: Ian Foss, U.S. Department of Education, 830 First Street NE., Room 113H2, Washington, DC 20202. Telephone: (202) 377-3681 or by email: firstname.lastname@example.org . 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- 800-877-8339. SUPPLEMENTARY INFORMATION: 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. Electronic Access to This Document: The official version of this document is the document published in the Federal Register. Free Internet access to the official edition of the Federal Register and the Code of Federal Regulations is available via the Federal Digital System at: www.gpo.gov/fdsys . 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