With federal student loan forgiveness scrapped by the Supreme Court, beginning around September, 2023 millions of Americans will have to start making Federal student loan payments again. But if your annual income is below a certain level, and you are accepted into an income – contingent repayment plan, monthly payments will still be nada, nil, zero.
The income protection threshold for the income-contingent repayment (ICR) plan in 2023 is $51,055. This means that if your adjusted gross income (AGI) is below this amount, you will not have to make any payments on your student loans under the ICR plan. If your AGI is above this amount, your monthly payment will be calculated based on your income and family size.
Note that the initial determination is made by reference to the graduate’s income level, not a spouse, parent, etc. It’s only if the graduate’s income is above $51k that family income and size is considered.