What Is an Income-Sensitive Repayment Plan? How It Works

Q: How long can you stay on an income-sensitive repayment plan?

How long you can stay on Income-Sensitive Repayment depends on your loan holder, but the maximum term is generally 10 years.

Q: What happens after your ISR plan term ends?

When your Income-Sensitive Repayment term ends, you’ll need to switch to another repayment plan, or your loan servicer may automatically place you on another eligible plan, such as Standard or Graduated Repayment .

Q: Does income-sensitive repayment lead to loan forgiveness?

Income-Sensitive Repayment does not offer loan forgiveness. Unlike income-driven plans such as IBR or RAP, ISR is designed to provide temporary payment relief rather than forgive a remaining balance after a set repayment period.

Q: Can you switch out of an income-sensitive repayment plan?

You can generally switch from ISR to another repayment plan you qualify for. Contact your loan holder or servicer to review your options and request the change.

Q: What happens if you don't recertify your income each year?

ISR payments are recalculated annually based on your income, so you’ll need to provide updated income information when your loan holder requires it. If you don’t, your loan holder could remove you from the plan since the payment may no longer reflect your current income. Check with your loan holder for the specific consequences and documentation requirements.

Q: Is income-sensitive repayment being phased out?

Income-Sensitive Repayment remains available to eligible FFEL borrowers. However, PAYE and ICR are scheduled to end no later than July 1, 2028, and affected borrowers will need to move to another eligible repayment plan.

Income-Sensitive Repayment Plans: How They Work and Who Qualifies

Income-Sensitive Repayment can temporarily lower payments for FFEL borrowers, but IBR or RAP may be a better fit if you need longer-term relief.

By Rebecca Safier

Written by

Rebecca Safier

Freelance writer

Rebecca has more than eight years of experience in personal finance. Her work has been featured by CNN, U.S. News & World Report, and New York Post.

Written by

Rebecca Safier

Freelance writer

Rebecca has more than eight years of experience in personal finance. Her work has been featured by CNN, U.S. News & World Report, and New York Post.

Edited by Renee Fleck

Written by

Renee Fleck

Renee Fleck is a student loans editor with over six years of experience. Her work has been featured in Fast Company, Morning Brew, and Sidebar.io, among other online publications. She is fluent in Spanish and French and enjoys traveling to new places.

Written by

Renee Fleck

Reviewed by Richard Richtmyer

Written by

Richard Richtmyer

Managing editor

Richard Richtmyer is a managing editor with over 20 years of finance experience. He's an expert on student loans, capital markets, investing, real estate, technology, business, government, and politics.

Written by

Richard Richtmyer

Managing editor

Updated October 2, 2026

Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”

Credible takeaways

Income-Sensitive Repayment is only available for eligible FFEL loans and bases your monthly payment on your income.
ISR can lower your payment temporarily, but you can generally stay on the plan for up to 10 years, though terms vary by loan servicer.
ISR does not offer loan forgiveness, and FFEL loans do not qualify for PSLF unless they’re consolidated into a Direct Loan.
If you expect your financial hardship to last longer, compare ISR with other repayment options you qualify for, such as IBR and RAP.

If you have Federal Family Education Loan (FFEL) loans from before the program ended in 2010, you may be eligible for Income-Sensitive Repayment (ISR). This plan adjusts your monthly payment based on your income and may provide temporary relief if your current payment is difficult to afford.

ISR is generally best suited for short-term financial hardship. If you expect your financial challenges to last longer, another repayment plan may offer more flexibility or a longer path to repayment, depending on your eligibility.

Here’s how Income-Sensitive Repayment works, who qualifies, and the pros and cons to consider.

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What is the Income-Sensitive Repayment Plan?

Income-Sensitive Repayment (ISR) is a federal repayment plan available to borrowers with loans from the Federal Family Education Loan (FFEL) Program. Your monthly payment is adjusted each year based on your gross income.

“The monthly payment is based on a percentage of income from 4% to 25% agreed to by the borrower and the lender,” explains financial aid expert Mark Kantrowitz. “The monthly payments must be at least the new interest that accrues.”

You’ll need to provide updated income information each year so your loan holder can recalculate your payment. ISR has a maximum repayment term of 10 years and, unlike income-driven repayment plans such as IBR, does not offer forgiveness at the end of the term.

Because the loan still must be repaid within 10 years, lower payments early on can lead to higher payments later.

Note

ISR terms can vary by loan holder. MOHELA and EdFinancial limit ISR to five years, after which you must move to another eligible repayment plan. Check with your loan servicer to confirm how long you can stay on ISR and what happens when your term ends.

Who qualifies for income-sensitive repayment?

You may qualify for Income-Sensitive Repayment if you have eligible loans from the FFEL Program. These include:

Subsidized Federal Stafford Loans
Unsubsidized Federal Stafford Loans
FFEL PLUS loans
FFEL Consolidation Loans

Because the FFEL Program stopped issuing new loans in 2010, you won’t qualify for ISR if you only have newer Direct Loans.

How do you apply for ISR?

To apply for Income-Sensitive Repayment, contact the lender or loan servicer that manages your FFEL loans. Most FFEL loans are held by a commercial lender or guaranty agency, although some are owned by the U.S. Department of Education.

Your loan holder may ask you to complete an ISR application and provide proof of your income, such as recent pay stubs. MOHELA, for example, provides a separate Income-Sensitive Repayment Plan form for FFEL borrowers.

Keep making payments under your current repayment plan until your loan holder confirms that your ISR request has been approved and provides your new monthly payment amount.

Once you’re enrolled, you’ll need to provide updated income information each year so your payment can be recalculated.

How does ISR compare with other repayment plans?

ISR operates differently from other income-driven repayment plans like Income-Based Repayment (IBR), Income-Contingent Repayment (ICR), and the Repayment Assistance Plan (RAP).

Here's how the plans compare:

	Monthly payment formula	Repayment term	Ends in forgiveness?	Are FFEL loans eligible?
ISR	Usually 4% to 25% of gross income; varies by lender; minimum payment must cover accrued interest	10 years	No	Yes
IBR	10% or 15% of discretionary income, depending on when you borrowed; no more than what you'd pay on the 10-year Standard Plan	20 or 25 years, depending on when you borrowed	Yes	Yes, consolidation not required. FFEL parent loans and FFEL consolidation loans that repaid parent loans are not eligible
ICR	20% of discretionary income or what you would pay on a fixed 12-year plan, whichever is less	25 years	Yes	Yes, if consolidated
RAP	1% to 10% of adjusted gross income, minus $50 for each dependent; $10 minimum payment	30 years	Yes	Yes, if consolidated

Editor Insight: “Before consolidating your FFEL loans, I suggest comparing what your payments would look like under IBR versus RAP or Tiered Standard. A Direct Consolidation Loan disbursed after July 1, 2026, is treated as a new Direct Loan, which can change the repayment plans available for both the consolidation loan and your other Direct Loans.”

— Renee Fleck, Student Loans Editor, Credible

Pros and cons of income-sensitive repayment

Consider both the pros and cons of Income-Sensitive Repayment before you enroll your FFEL loans in this plan.

Pros

Can lower your monthly payment
Helps prevent your balance from growing
Doesn’t require consolidation
Doesn’t lock you into a repayment plan permanently

Cons

Only provides temporary payment relief
May cost more in interest
Doesn’t offer income-driven forgiveness
FFEL loans aren’t eligible for PSLF

Details on the pros

Can lower your monthly payment: ISR bases your payment on your gross income, which may make payments more manageable if you’re experiencing a temporary drop in income.
Helps prevent your balance from growing: Your payment must cover at least the interest that accrues each month, so unpaid interest won’t continue piling up while you’re on the plan.
Doesn’t require consolidation: Eligible FFEL borrowers can enroll in ISR without first converting their loans into a Direct Consolidation Loan.
Doesn’t lock you into a repayment plan permanently: You can switch to another repayment plan you qualify for if ISR no longer meets your needs.

Details on the cons

Only provides temporary payment relief: ISR is generally intended for short-term financial difficulty. How long you stay on the plan varies by loan holder.
May cost more in interest: Lowering your payments can slow how quickly you pay down principal, which may increase the total interest you pay compared with the Standard Repayment Plan.
Doesn’t offer income-driven forgiveness: Time spent on ISR doesn’t lead to loan forgiveness at the end of your repayment period the way eligible income-driven plans can.
FFEL loans aren’t eligible for PSLF: Payments on FFEL loans don’t qualify for Public Service Loan Forgiveness unless you consolidate them into an eligible Direct Consolidation Loan and meet the program’s other requirements.

FAQ

How long can you stay on an income-sensitive repayment plan?

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What happens after your ISR plan term ends?

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Does income-sensitive repayment lead to loan forgiveness?

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Can you switch out of an income-sensitive repayment plan?

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What happens if you don't recertify your income each year?

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Is income-sensitive repayment available for Direct Loans?

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Is income-sensitive repayment being phased out?

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Meet the expert:

Rebecca Safier

Rebecca Safier has more than eight years of experience in personal finance. Her work has been featured by CNN, U.S. News & World Report, and New York Post.