Income Sensitive Repayment - ISR

AAA

DEFINITION of 'Income Sensitive Repayment - ISR'

A method of repayment for loans that are serviced by lenders participating in the Federal Family Education Loan Program (FFELP). The ISR is intended to make it easier for borrowers with lower paying jobs to afford their monthly loan payments. The ISR is an alternative to the income contingent repayment. The monthly loan payment amount is based on a fixed percentage of the borrower's gross monthly income, between 4% and 25%. The monthly payment must be greater than or equal to the interest that the loan accrues.

INVESTOPEDIA EXPLAINS 'Income Sensitive Repayment - ISR'

Income sensitive repayment allows lower-earning borrowers to reduce their monthly payment amount, depending on the gross monthly income. This method of repayment increases the total amount of interest that will be paid on the loan. Borrowers must apply each year to be eligible for ISR, and must provide a copy of their tax returns and/or W-2s.

RELATED TERMS
  1. Free Application For Federal Student ...

    The form that must be completed in order to qualify for any type ...
  2. Education Loan

    Money borrowed to finance education or school related expenses. ...
  3. PLUS Loan

    A low-cost student loan offered to parents of students currently ...
  4. 529 Plan

    A plan that allows for the prepayment of qualified higher education ...
  5. Qualified Higher Education Expense

    Expenses such as tuition and tuition related expenses that an ...
  6. Student Debt

    Money owed on a loan taken out to pay for educational expenses. ...
Related Articles
  1. Credit & Loans

    College Loans: Private Vs. Federal

    Not all student loans are the same. Know what you're getting into before signing on the dotted line.
  2. Retirement

    Student Loan Debt: Is Consolidation The Answer?

    Consolidating your student loans offers convenience, but there are drawbacks.
  3. Budgeting

    Student Debt: Is Bankruptcy The Answer?

    Student loans can be a huge financial burden, but bankruptcy won't necessarily save you from paying.
  4. The annual percentage rate, or APR, is the cost per year of borrowing.
    Credit & Loans

    What's the Annual Percentage Rate (APR)?

    The annual percentage rate, or APR, is the cost per year of borrowing. By law, all financial institutions must show customers the APR of a loan or credit card, which clearly indicates the real ...
  5. Magna cum laude is one of three Latin honors.
    Personal Finance

    What Does "Magna Cum Laude" Mean?

    Magna cum laude is one of three Latin honors used by many academic institutions to recognize their best students.
  6. These days, those attending college have plenty of ways to get affordable medical insurance, from student health plans to those sold on an exchange.
    Insurance

    4 Smart Ways To Get Health Insurance In College

    These days, those attending college have plenty of ways to get affordable medical insurance, from student health plans to those sold on an exchange.
  7. Before you sign up for a car title loan, investigate these 8 alternate strategies.
    Credit & Loans

    8 Top Alternatives to Car Title Loans

    Before you sign up for a car title loan, investigate these 8 alternate strategies.
  8. Credit & Loans

    What are the different types of cash advances?

    Find out the different types of cash advances along with their different features to determine which option, if any, is best for you.
  9. Credit & Loans

    Is it better to get a balance transfer or a personal loan to pay off my credit card debt?

    Find out what you should consider before deciding to pay off your credit card debt by taking out a personal loan or using a balance transfer to another card.
  10. Credit card balance transfers can help pay off debts – but they can cost you. Here are some other approaches worth checking out.
    Credit & Loans

    4 Debt-Busting AlternativesTo Balance Transfers

    Credit card balance transfers can help pay off debts – but they can cost you. Here are some other approaches worth checking out.

You May Also Like

Hot Definitions
  1. Scarcity

    The basic economic problem that arises because people have unlimited wants but resources are limited. Because of scarcity, ...
  2. Trust Fund

    A trust fund is a fund comprised of a variety of assets intended to provide benefits to an individual or organization. The ...
  3. Christmas Tree

    An options trading strategy that is generally achieved by purchasing one call option and selling two other call options at ...
  4. Christmas Club

    A short-term savings account that usually pays out the full account balance to its account holders once each year, right ...
  5. Boston Snow Indicator

    A market theory that states that a white Christmas in Boston will result in rising stock prices for the following year. For ...
  6. Christmas Island Dollar

    The former currency of Christmas Island, an Australian island in the Indian Ocean that was discovered on December 25, 1643. ...
Trading Center