Question About The Income Contingent Program

dream,

Monthly payments for ICR completely depend upon the rate of interest, nature of the loan, your yearly income, family size etc.

If your present income does not permit you to pay the installments, ICR does not charge any amount from you. However there is a minimum amount payable on a monthly basis and it can be as lower as $5.

You have mentioned that you have to pay 3 installments before your income is calculated. It depends upon the rate of interest and the loan term also. Please go through the papers carefully to know the amount for these initial payments. You can undergo online entrance/exit counseling for the details of your account.

Ive a question regarding income contingent repayment plan. I was with this process, but never paid any initial installments before the income calculation. Anyways, Ive got a nice-paid job now. Can I switch over to some other repayment plan? I was in ICR for last five years. Since I was in a low paying job at that time, could not pay the whole amount, but never fell short on my agreed payments. Any advice appreciated.

Once the repayment process starts under ICR program, you need to pay the amount set by the lender only. If the payments do not cover up the interest, the due amount is capitalized on a yearly basis.

This amount is again capped @ 10% of principal amount. Any extra un-paid interest is added with the principal amount but not capitalized, which means it is not compounded.

However; this facility is available as long as you are in the ICR program. If you decide to switch over to some other repayment plan, the un-paid interest is capitalized and you need to pay the interest as well.

You have mentioned that you have got a well paid job now. You can switch over to some other repayment plan because ICR program makes the loan term longer and you might have to pay more money once your income increases.

You can go through the details of different repayment plans here-
http://forums.debtcc.com/forums/repayment-plans.html

thanks alot bryn :) finally signed up!!

I had a loan with Pioneer Credit, that was transfered to Direct Loans Consolidation...Eventually after I was accepted into that program they called me and wanted to put me in the Income Contingent Plan, but I have to get a checking account? Which is really not convient for me, because I'm only making $11 p/hr, all the money I have goes to bills right away after being paid. So I'm not sure what's going to happen, because this loan is only like 3k, but I have another one for like 9k! :( The one for 9k, I really need to add to this program so I can actually go to my local community college to get my CNA and PLN classes I want to take. Which are reallly short classes and will help me make tons more money - making it much easier for me to actually pay off these debts. WHY DO I HAVE TO GET A CHECKING ACCOUNT? I don't even have 50 extra dollars to start an account.

I am dealing with Pioneer also....and they are total jerks!!! However, as I am disabled they are now having to mail me a form for my DR. And, get this....the original letter came from General Revenue concering The finance Authority of Maine...that is exactly what it states. However, after calling the phone # provided I got transferred to Pioneer who also represented themselves as collecting for The finance authority of Maine.....well, when the consolidation papers got here....guess what.....they're not collecting for Maine....Sallie Mae bought the loan.....so trust me I know how very confusing all of this is. I really do know how frustrating it is...but if it's Pioneer you're dealing with...you might as well give up and get the checking account....because they are relentless and heartless!! Good Luck hun!