Income-Sensitive Repayment (ISR)

The income-sensitive repayment plan is one of the flexible options that you will be able to choose from if you have federal student loans. Here are the basics of the income-sensitive repayment plan or ISR and how it works.

Income-Sensitive Repayment

This plan is similar to the income-contingent and income-based repayment plans, with a few key differences. With the income-sensitive repayment plan, you will be able to choose how much you want your monthly payment to be, based on a percentage of your income. The payment can be anywhere between 4 and 25 percent of your monthly income. You can choose the payment, as long as it exceeds the monthly interest that is accruing on the loan.

Payment Terms

With an ISR repayment you will not be able to extend the loan as long as you can with other federal student loan programs. You will have 10 years to repay the loan, so you are somewhat limited.


In order to qualify for this loan program, you have to reapply for it yearly. In order to do this, you will be required to provide the lender with income statements, such as your paystubs and W-2 forms. The lender will then decide if you are eligible for this program every time you apply.

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