How to Fill Out an ISR Student Loan

Income-sensitive repayment plans are an ideal option for qualified borrowers on a tight budget.

Income-sensitive repayment plans are useful for managing student loan payments for borrowers who are experiencing or expecting periods of lowered income. This method is available through lenders that service loans from the Federal Family Educational Loan Program. Qualified borrowers are given fixed, reduced monthly payments based on a percentage of their monthly income, generally between 4 percent and 25 percent. The maximum repayment term is 10 years, and payments are adjusted each year based on changes in the borrower's monthly income. Once you have reviewed your payment options and have determined the ISR plan is best for you, it is relatively easy to take advantage of this repayment option.

Things You'll Need

• Department of Education PIN

Instructions

Instructions

1. Go to the National Student Loan Data System to find out if you have FFEL student loans. At the homepage, click on "Financial Aid Review."

2. Accept the privacy notice and fill in the screens with the requested personal information. You will need your PIN from the U.S. Department of Education.

3. Examine the results of the review. Once you have determined that you have FFEL student loans, contact your student loan provider to begin the application process.

4. Fill out the loan application, following the instructions provided by the lender. Complete the required sections with your name, address and contact information. Your employment information, monthly income and monthly expenses must also be listed on the application.

5. Sign and date the application and return it to the lender. Submit all requested supplemental information such as pay stubs, W-2s or tax returns, as soon as possible, or it could delay the approval process.

Tips & Warnings

• The Department of Education has a website for managing services related to your financial aid PIN number. There you can apply for a new PIN or request a duplicate PIN.

• Online student loan management services such as ECMC Solutions can help you review several repayment options, including the ISR plan, that will work best for your individual circumstances.

• Have your income information available before you begin the ISR application process. The lender will need verification of your monthly income in order to determine your monthly payments.

References

• ECMC: Income Sensitive Repayment
• National Student Loan Data System

Resources

• ISR Plan Repayment Calculator
• Federal Student Aid PIN