The Income-Contingent Repayment (ICR) plan is a repayment plan where the borrower's monthly payments are recalculated each year on the basis of the borrower's income, family size, and student loan indebtedness. If the borrower hasn't fully repaid his or her loans after 25 years, the remainder will be forgiven, but the borrower may have to pay taxes on the amount that is discharged.
On an ICR plan, monthly payments are the lesser of (1) what you would pay on a 12-year standard repayment plan multiplied by an income percentage factor or (2) 20% of your discretionary income divided by 12. Discretionary income for this plan is the amount by which your adjusted gross income exceeds the poverty guideline amount for your state of residence and family size.