The Secretary announces the annual updates to the ICR plan formula for 2011. Under the William D. Ford Federal Direct Loan (Direct Loan) Program, borrowers may choose to repay their loans (Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans made to graduate or professional students, and Direct Consolidation Loans) under the ICR plan, which bases the repayment amount on the borrower's income, family size, loan amount, and the interest rate applicable to each loan. Each year, we adjust the formula for calculating a borrower's ICR payment to reflect changes due to inflation. This notice contains the adjusted income percentage factors for 2011, examples of how the calculation of the monthly ICR amount is performed, a constant multiplier chart for use in performing the calc...
... multiplier chart for a 12-year loan amortization. Further, in Attachment 3, we provide examples of ...