Income-Sensitive Repayment

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There are a number of loan repayment options available to U.S. federal student loan borrowers, including some that are based on the borrower’s income. Income-sensitive repayment lets Federal Family Education Loan Program (FFELP) borrowers decide what percentage of their income their loan payment will be. Income-sensitive repayment (ISR) is one such option.[1]

How it works[edit]

The borrower selects a monthly payment amount between 4–25% of his or her monthly income. The payment must be greater than or equal to the interest accruing on the loan. The borrower must reapply for this schedule every year. It is available for up to 5 years.

After 5 years, the borrower will need to choose another repayment schedule. The borrower may have up to 10 additional years under a new schedule.

Income-sensitive repayment extends the repayment period. As a result, the total amount paid in interest may be greater than what the borrower would pay under standard repayment.


  1. ^ American Student Assistance Archived 2010-05-07 at the Wayback Machine. Retrieved on June 9, 2010