83 FR 37802 - Annual Updates to the Income Contingent Repayment (ICR) Plan Formula for 2018-William D. Ford Federal Direct Loan Program
DEPARTMENT OF EDUCATION Federal Register Volume 83, Issue 149 (August 2, 2018)
Federal Register Volume 83, Issue 149 (August 2, 2018)
| Page Range | 37802-37806 | |
| FR Document | 2018-16582 |
[Federal Register Volume 83, Number 149 (Thursday, August 2, 2018)] [Notices] [Pages 37802-37806] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-16582] ----------------------------------------------------------------------- DEPARTMENT OF EDUCATION Annual Updates to the Income Contingent Repayment (ICR) Plan Formula for 2018--William D. Ford Federal Direct Loan Program AGENCY: Federal Student Aid, Department of Education. ACTION: Notice. ----------------------------------------------------------------------- SUMMARY: The Secretary announces the annual updates to the ICR plan formula for 2018 to give notice to borrowers and the public regarding how monthly ICR payment amounts will be calculated for the 2018-2019 year under the William D. Ford Federal Direct Loan (Direct Loan) Program, Catalog of Federal Domestic Assistance number 84.063. DATES: The adjustments to the income percentage factors for the ICR plan formula contained in this notice are applicable from July 1, 2018, to June 30, 2019, for any borrower who enters the ICR plan or has his or her monthly payment amount recalculated under the ICR plan during that period. FOR FURTHER INFORMATION CONTACT: Ian Foss, U.S. Department of Education, 830 First Street NE, Room 113H2, Washington, DC 20202. Telephone: (202) 377-3681. Email: [email protected]. If you use a telecommunications device for the deaf (TDD) or a text telephone (TTY), call the Federal Relay Service, toll free, at 1-800- 877-8339. SUPPLEMENTARY INFORMATION: Under the Direct Loan Program, borrowers may choose to repay their non-defaulted loans (Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans made to graduate or professional students, and Direct Consolidation Loans) under the ICR plan. The ICR plan bases the borrower's repayment amount on the borrower's income, family size, loan amount, and the interest rate applicable to each of the borrower's loans. ICR is one of several income-driven repayment plans. Other income- driven repayment plans include the Income-Based Repayment (IBR) plan, the Pay As You Earn Repayment (PAYE) plan, and the Revised Pay As You Earn Repayment (REPAYE) plan. The IBR, PAYE, and REPAYE plans provide lower payment amounts than the ICR plan for most borrowers. A Direct Loan borrower who repays his or her loans under the ICR plan pays the lesser of: (1) The amount that he or she would pay over 12 years with fixed payments multiplied by an income percentage factor; or (2) 20 percent of discretionary income. Each year, to reflect changes in inflation, we adjust the income percentage factor used to calculate a borrower's ICR payment, as required by 34 CFR 685.209(b)(1)(ii)(A). We use the adjusted income percentage factors to calculate a borrower's monthly ICR payment amount when the borrower initially applies for the ICR plan or when the borrower submits his or her annual income documentation, as required under the ICR plan. This notice contains the adjusted income percentage factors for 2018, examples of how the monthly payment amount in ICR is calculated, and charts showing sample repayment amounts based on the adjusted ICR plan formula. This information is included in the following three attachments:Attachment 1--Income Percentage Factors for 2018 Attachment 2--Examples of the Calculations of Monthly Repayment Amounts Attachment 3--Charts Showing Sample Repayment Amounts for Single and Married Borrowers In Attachment 1, to reflect changes in inflation, we updated the income percentage factors that were published in the Federal Register on July 18, 2017 (82 FR 32803). Specifically, we have revised the table of income percentage factors by changing the dollar amounts of the incomes shown by a percentage equal to the estimated percentage change between the not-seasonally-adjusted Consumer Price Index for all urban consumers for December 2017 and December 2018. The income percentage factors reflected in Attachment 1 may cause a borrower's payments to be lower than they were in prior years, even if the borrower's income is the same as in the prior year. The revised repayment amount more accurately reflects the impact of inflation on the borrower's current ability to repay. Accessible Format: Individuals with disabilities can obtain this document in an accessible format (e.g., braille, large print, audiotape, or compact disc) on request to the contact person listed under FOR FURTHER INFORMATION CONTACT. Electronic Access to This Document: The official version of this document is the document published in the Federal Register. You may access the official edition of the Federal Register and the Code of Federal Regulations via the Federal Digital System at: www.thefederalregister.org/fdsys. At this site, you can view this document, as well as all other documents of this Department published in the Federal Register, in text or Portable Document Format (PDF). To use PDF, you must have [[Page 37803]] Adobe Acrobat Reader, which is available free at this site. You may also access documents of the Department published in the Federal Register by using the article search feature at: www.federalregister.gov. Specifically, through the advanced search feature at this site, you can limit your search to documents published by the Department. Program Authority: 20 U.S.C. 1087 et seq. Dated: July 30, 2018. James F. Manning, Acting Chief Operating Officer, Federal Student Aid. Attachment 1--Income Percentage Factors for 2018 Income Percentage Factors for 2018 ---------------------------------------------------------------------------------------------------------------- Single Married/head of household ---------------------------------------------------------------------------------------------------------------- Income % Factor Income % Factor ---------------------------------------------------------------------------------------------------------------- $11,860......................................................... 55.00 $11,860 50.52 16,318.......................................................... 57.79 18,712 56.68 20,997.......................................................... 60.57 22,299 59.56 25,782.......................................................... 66.23 29,152 67.79 30,352.......................................................... 71.89 36,114 75.22 36,114.......................................................... 80.33 45,361 87.61 45,361.......................................................... 88.77 56,890 100.00 56,891.......................................................... 100.00 68,424 100.00 68,424.......................................................... 100.00 85,724 109.40 82,238.......................................................... 111.80 114,547 125.00 105,302......................................................... 123.50 154,905 140.60 149,143......................................................... 141.20 216,641 150.00 171,006......................................................... 150.00 354,009 200.00 304,590......................................................... 200.00 .............. .............. ---------------------------------------------------------------------------------------------------------------- Attachment 2--Examples of the Calculations of Monthly Repayment Amounts General notes about the examples in this attachment: We have a calculator that borrowers can use to estimate what their payment amounts would be under the ICR plan. The calculator is called the ``Repayment Estimator'' and is available at StudentAid.gov/repayment-estimator. Based on information inputted into the calculator by the borrower (for example, income, family size, and tax filing status), this calculator provides a detailed, individualized assessment of a borrower's loans and repayment plan options, including the ICR plan. The interest rates used in the examples are for illustration only. The actual interest rates on an individual borrower's Direct Loans depend on the loan type and when the postsecondary institution first disbursed the Direct Loan to the borrower. The Poverty Guideline amounts used in the examples are from the 2018 U.S. Department of Health and Human Services (HHS) Poverty Guidelines for the 48 contiguous States and the District of Columbia. Different Poverty Guidelines apply to residents of Alaska and Hawaii. The Poverty Guidelines for 2018 were published in the Federal Register on January 18, 2018 (83 FR 2642). All of the examples use an income percentage factor corresponding to an adjusted gross income (AGI) in the table in Attachment 1. If an AGI is not listed in the income percentage factors table in Attachment 1, the applicable income percentage can be calculated by following the instructions under the ``Interpolation'' heading later in this attachment. Married borrowers may repay their Direct Loans jointly under the ICR plan. If a married couple elects this option, we add the outstanding balance on the Direct Loans of each borrower and we add together both borrowers' AGIs to determine a joint ICR payment amount. We then prorate the joint payment amount for each borrower based on the proportion of that borrower's debt to the total outstanding balance. We bill each borrower separately. For example, if a married couple, John and Sally, has a total outstanding Direct Loan debt of $60,000, of which $40,000 belongs to John and $20,000 to Sally, we would apportion 67 percent of the monthly ICR payment to John and the remaining 33 percent to Sally. To take advantage of a joint ICR payment, married couples need not file taxes jointly; they may file separately and subsequently provide the other spouse's tax information to the borrower's Federal loan servicer. Calculating the monthly payment amount using a standard amortization and a 12-year repayment period. The formula to amortize a loan with a standard schedule (in which each payment is the same over the course of the repayment period) is as follows: M = P x <(I / 12) / [1 - {1 + (I / 12){time} [caret]-N]> In the formula-- M is the monthly payment amount; P is the outstanding principal balance of the loan at the time the calculation is performed; I is the annual interest rate on the loan, expressed as a decimal (for example, for a loan with an interest rate of 6 percent, 0.06); and N is the total number of months in the repayment period (for example, for a loan with a 12-year repayment period, 144 months). For example, assume that Billy has a $10,000 Direct Unsubsidized Loan with an interest rate of 6 percent. Step 1: To solve for M, first simplify the numerator of the fraction by which we multiply P, the outstanding principal balance. To do this divide I, the interest rate, as a decimal, by 12. In this example, Billy's interest rate is 6 percent. As a decimal, 6 percent is 0.06. 0.06 / 12 = 0.005 Step 2: Next, simplify the denominator of the fraction by which we multiply P. To do this divide I, the interest rate, as a decimal, by 12. Then, add one. Next, raise the sum of the two figures to the negative power that corresponds to the length of the repayment period in months. In this example, because we are amortizing a loan to calculate the monthly payment amount under the ICR plan, the applicable figure is 12 years, which is 144 months. Finally, subtract the result from one. 0.06 / 12 = 0.005 1 + 0.005 = 1.005 1.005 [caret] - 144 = 0.48762628 [[Page 37804]] 1 - 0.48762628 = 0.51237372 Step 3: Next, resolve the fraction by dividing the result from Step 1 by the result from Step 2. 0.005 / 0.51237372 = 0.0097585 Step 4: Finally, solve for M, the monthly payment amount, by multiplying the outstanding principal balance of the loan by the result of Step 3. $10,000 x 0.0097585 = $97.59 The remainder of the examples in this attachment will only show the results of the formula. Example 1. Brenda is single with no dependents and has $15,000 in Direct Subsidized and Unsubsidized Loans. The interest rate on Brenda's loans is 6 percent, and she has an AGI of $30,352. Step 1: Determine the total monthly payment amount based on what Brenda would pay over 12 years using standard amortization. To do this, use the formula that precedes Example 1. In this example, the monthly payment amount would be $146.38. Step 2: Multiply the result of Step 1 by the income percentage factor shown in the income percentage factors table (see Attachment 1 to this notice) that corresponds to Brenda's AGI. In this example, an AGI of $30,352 corresponds to an income percentage factor of 71.89 percent. 0.7189 x $146.38 = $105.23 Step 3: Determine 20 percent of Brenda's discretionary income and divide by 12 (discretionary income is AGI minus the HHS Poverty Guideline amount for a borrower's family size and State of residence). For Brenda, subtract the Poverty Guideline amount for a family of one from her AGI, multiply the result by 20 percent, and then divide by 12: $30,352-$12,140 = $18,212 $18,212 x 0.20 = $3,642.40 $3,642.40 / 12 = $303.53 Step 4: Compare the amount from Step 2 with the amount from Step 3. The lower of the two will be the monthly ICR payment amount. In this example, Brenda will be paying the amount calculated under Step 2 ($105.23). Note: Brenda would have a lower payment under other income-driven repayment plans. Specifically, Brenda's payment would be $101.18 under the PAYE and REPAYE plans. However, Brenda's payment would be $151.76 under the IBR plan, which is higher than the payment she would have under the ICR plan. Example 2. Joseph is married to Susan and has no dependents. They file their Federal income tax return jointly. Joseph has a Direct Loan balance of $10,000, and Susan has a Direct Loan balance of $15,000. The interest rate on all of the loans is 6 percent. Joseph and Susan have a combined AGI of $85,724 and are repaying their loans jointly under the ICR plan (for general information regarding joint ICR payments for married couples, see the fifth and sixth bullets under the heading ``General notes about the examples in this attachment''). Step 1: Add Joseph's and Susan's Direct Loan balances to determine their combined aggregate loan balance: $10,000 + $15,000 = $25,000 Step 2: Determine the combined monthly payment amount for Joseph and Susan based on what both borrowers would pay over 12 years using standard amortization. To do this, use the formula that precedes Example 1. In this example, the combined monthly payment amount would be $243.96. Step 3: Multiply the result of Step 2 by the income percentage factor shown in the income percentage factors table (see Attachment 1 to this notice) that corresponds to Joseph and Susan's combined AGI. In this example, the combined AGI of $85,724 corresponds to an income percentage factor of 109.40 percent. 1.094 x $243.96 = $266.90 Step 4: Determine 20 percent of Joseph and Susan's combined discretionary income (discretionary income is AGI minus the HHS Poverty Guideline amount for a borrower's family size and State of residence). To do this, subtract the Poverty Guideline amount for a family of two from the combined AGI, multiply the result by 20 percent, and then divide by 12: $85,724-$16,460 = $69,264 $69,264 x 0.20 = $13,852.80 $13,852.80 / 12 = $1,154.40 Step 5: Compare the amount from Step 3 with the amount from Step 4. The lower of the two will be Joseph and Susan's joint monthly payment amount. Joseph and Susan will jointly pay the amount calculated under Step 3 ($266.90). Note: For Joseph and Susan, the ICR plan provides the lowest monthly payment of all of the income-driven repayment plans. Joseph and Susan would not be eligible for the IBR or PAYE plans, and would have a combined monthly payment under the REPAYE plan of $508.62. Step 6: Because Joseph and Susan are jointly repaying their Direct Loans under the ICR plan, the monthly payment amount calculated under Step 5 applies to both Joseph's and Susan's loans. To determine the amount for which each borrower will be responsible, prorate the amount calculated under Step 4 by each spouse's share of the combined Direct Loan debt. Joseph has a Direct Loan debt of $10,000 and Susan has a Direct Loan debt of $15,000. For Joseph, the monthly payment amount will be: $10,000 / ($10,000 + $15,000) = 40 percent 0.40 x $266.90 = $106.76 For Susan, the monthly payment amount will be: $15,000 / ($10,000 + $15,000) = 60 percent 0.60 x $266.90 = $160.14 Example 3. David is single with no dependents and has $60,000 in Direct Subsidized and Unsubsidized Loans. The interest rate on all of the loans is 6 percent, and David's AGI is $36,114. Step 1: Determine the total monthly payment amount based on what David would pay over 12 years using standard amortization. To do this, use the formula that precedes Example 1. In this example, the monthly payment amount would be $585.51. Step 2: Multiply the result of Step 1 by the income percentage factor shown in the income percentage factors table (see Attachment 1 to this notice) that corresponds to David's AGI. In this example, an AGI of $36,114 corresponds to an income percentage factor of 80.33 percent. 0.8033 x $585.51 = $470.34 Step 3: Determine 20 percent of David's discretionary income and divide by 12 (discretionary income is AGI minus the HHS Poverty Guideline amount for a borrower's family size and State of residence). To do this, subtract the Poverty Guideline amount for a family of one from David's AGI, multiply the result by 20 percent, and then divide by 12: $36,114-$12,140 = $23,974 $23,974 x 0.20 = $4,794.80 $4,794.80 / 12 = $399.57 Step 4: Compare the amount from Step 2 with the amount from Step 3. The lower of the two will be David's monthly payment amount. In this example, David will be paying the amount calculated under Step 3 ($399.57). Note: David would have a lower payment under each of the other income-driven plans. Specifically, David's payment would be $149.20 under the PAYE and REPAYE plans and $223.80 under the IBR plan. Interpolation. If an income is not included on the income percentage [[Page 37805]] factor table, calculate the income percentage factor through linear interpolation. For example, assume that Joan is single with an income of $50,000. Step 1: Find the closest income listed that is less than Joan's income of $50,000 ($45,361) and the closest income listed that is greater than Joan's income of $50,000 ($56,891). Step 2: Subtract the lower amount from the higher amount (for this discussion we will call the result the ``income interval''): $56,891-$45,361 = $11,530 Step 3: Determine the difference between the two income percentage factors that correspond to the incomes used in Step 2 (for this discussion, we will call the result the ``income percentage factor interval''): 100.00 percent-88.77 percent = 11.23 percent Step 4: Subtract from Joan's income the closest income shown on the chart that is less than Joan's income of $50,000: $50,000-$45,361 = $4,639 Step 5: Divide the result of Step 4 by the income interval determined in Step 2: $4,639 / $11,530 = 40.23 percent Step 6: Multiply the result of Step 5 by the income percentage factor interval: 11.23 percent x 40.23 percent = 4.52 percent Step 7: Add the result of Step 6 to the lower of the two income percentage factors used in Step 3 to calculate the income percentage factor interval for $50,000 in income: 4.52 percent + 88.77 percent = 93.29 percent (rounded to the nearest hundredth) The result is the income percentage factor that we will use to calculate Joan's monthly repayment amount under the ICR plan. Attachment 3--Charts Showing Sample Income-Driven Repayment Amounts for Single and Married Borrowers Below are two charts that provide first-year payment amount estimates for a variety of loan debt sizes and incomes under all of the income-driven repayment plans and the 10-Year Standard Repayment Plan. The first chart is for single borrowers who have a family size of one. The second chart is for a borrower who is married or a head of household and who has a family size of three. The calculations in Attachment 3 assume that the loan debt has an interest rate of 6 percent. For married borrowers, the calculations assume that the borrower files a joint Federal income tax return with his or her spouse and that the borrower's spouse does not have Federal student loans. A field with a ``-'' character indicates that the borrower in the example would not be eligible to enter the applicable income-driven repayment plan based on the borrower's income, loan debt, and family size. Sample First-Year Monthly Repayment Amounts for a Single Borrower -------------------------------------------------------------------------------------------------------------------------------------------------------- Family Size = 1 --------------------------------------------------------------------------------------------------------------------------------------------------------- Income Plan $20,000 $40,000 $60,000 $80,000 $100,000 -------------------------------------------------------------------------------------------------------------------------------------------------------- Initial Debt...................... $20,000 ICR................. $117 $165 $195 $214 $236 IBR................. 22 - - - - PAYE................ 15 182 - - - REPAYE.............. 15 182 348 515 682 10-Year Standard.... 222 222 222 222 222 40,000 ICR................. 131 327 390 429 472 BR.................. 22 272 - - - PAYE................ 15 182 348 - - REPAYE.............. 15 182 348 515 682 10-Year Standard.... 444 444 444 444 444 60,000 ICR................. 131 464 586 643 707 IBR................. 22 272 522 - - PAYE................ 15 182 348 515 - REPAYE.............. 15 182 348 515 682 10-Year Standard.... 666 666 666 666 666 80,000 ICR................. 131 464 781 858 943 IBR................. 22 272 522 772 - PAYE................ 15 182 348 515 682 REPAYE.............. 15 182 348 515 692 10-Year Standard.... 888 888 888 888 888 100,000 ICR................. 131 464 798 1,072 1,179 IBR................. 22 272 522 772 1,022 PAYE................ 15 182 348 515 682 REPAYE.............. 15 182 348 515 692 10-Year Standard.... 1,110 1,110 1,110 1,110 1,110 -------------------------------------------------------------------------------------------------------------------------------------------------------- Sample First-Year Monthly Repayment Amounts for a Married or Head-of-Household Borrower -------------------------------------------------------------------------------------------------------------------------------------------------------- Family Size = 3 --------------------------------------------------------------------------------------------------------------------------------------------------------- Income Plan $20,000 $40,000 $60,000 $80,000 $100,000 -------------------------------------------------------------------------------------------------------------------------------------------------------- Initial Debt...................... Income Plan................ $20,000 $40,000 $60,000 $80,000 $100,000 $20,000 ICR................. $0 $166 $195 $207 $229 IBR................. 0 110 - - - PAYE................ 0 74 - - - REPAYE.............. 0 74 240 407 574 10-Year Standard.... 222 222 222 222 222 [[Page 37806]] 40,000 ICR................. 0 314 390 415 457 IBR................. 0 110 360 - - PAYE................ 0 74 240 407 - REPAYE.............. 0 74 240 407 574 10-Year Standard.... 444 444 444 444 444 60,000 ICR................. 0 320 586 622 686 IBR................. 0 110 360 610 - PAYE................ 0 74 240 407 574 REPAYE.............. 0 74 240 407 574 10-Year Standard.... 666 666 666 666 666 80,000 ICR................. 0 320 654 830 914 IBR................. 0 110 360 610 860 PAYE................ 0 74 240 407 574 REPAYE.............. 0 74 240 407 574 10-Year Standard.... 888 888 888 888 888 100,000 ICR................. 0 320 654 987 1,143 IBR................. 0 110 360 610 860 PAYE................ 0 74 240 407 574 REPAYE.............. 0 74 240 407 574 10-Year Standard.... 1,110 1,110 1,110 1,110 1,110 -------------------------------------------------------------------------------------------------------------------------------------------------------- [FR Doc. 2018-16582 Filed 8-1-18; 8:45 am] BILLING CODE 4000-01-P
![37802 Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 / Notices
and implementation of high-quality DEPARTMENT OF EDUCATION percentage factor used to calculate a
school EOPs. borrower’s ICR payment, as required by
Annual Updates to the Income 34 CFR 685.209(b)(1)(ii)(A). We use the
6. Continuation Awards: In making a
Contingent Repayment (ICR) Plan adjusted income percentage factors to
continuation award under 34 CFR
Formula for 2018—William D. Ford calculate a borrower’s monthly ICR
75.253, the Secretary considers, among Federal Direct Loan Program payment amount when the borrower
other things: whether a grantee has
AGENCY: Federal Student Aid, initially applies for the ICR plan or
made substantial progress in achieving
Department of Education. when the borrower submits his or her
the goals and objectives of the project; annual income documentation, as
whether the grantee has expended funds ACTION: Notice.
required under the ICR plan. This notice
in a manner that is consistent with its contains the adjusted income percentage
SUMMARY: The Secretary announces the
approved application and budget; and, factors for 2018, examples of how the
annual updates to the ICR plan formula
if the Secretary has established for 2018 to give notice to borrowers and monthly payment amount in ICR is
performance measurement the public regarding how monthly ICR calculated, and charts showing sample
requirements, the performance targets in payment amounts will be calculated for repayment amounts based on the
the grantee’s approved application. the 2018–2019 year under the William adjusted ICR plan formula. This
In making a continuation award, the D. Ford Federal Direct Loan (Direct information is included in the following
Secretary also considers whether the Loan) Program, Catalog of Federal three attachments:
grantee is operating in compliance with Domestic Assistance number 84.063. • Attachment 1—Income Percentage
the assurances in its approved DATES: The adjustments to the income Factors for 2018
application, including those applicable percentage factors for the ICR plan • Attachment 2—Examples of the
to Federal civil rights laws that prohibit formula contained in this notice are Calculations of Monthly Repayment
discrimination in programs or activities applicable from July 1, 2018, to June 30, Amounts
receiving Federal financial assistance 2019, for any borrower who enters the • Attachment 3—Charts Showing
from the Department (34 CFR 100.4, ICR plan or has his or her monthly Sample Repayment Amounts for
104.5, 106.4, 108.8, and 110.23). payment amount recalculated under the Single and Married Borrowers
ICR plan during that period. In Attachment 1, to reflect changes in
VII. Other Information FOR FURTHER INFORMATION CONTACT: Ian inflation, we updated the income
Foss, U.S. Department of Education, 830 percentage factors that were published
Accessible Format: Individuals with in the Federal Register on July 18, 2017
disabilities can obtain this document First Street NE, Room 113H2,
Washington, DC 20202. Telephone: (82 FR 32803). Specifically, we have
and a copy of the application package in revised the table of income percentage
(202) 377–3681. Email: ian.foss@ed.gov.
an accessible format (e.g., braille, large factors by changing the dollar amounts
If you use a telecommunications
print, audiotape, or compact disc) on device for the deaf (TDD) or a text of the incomes shown by a percentage
request to the program contact person telephone (TTY), call the Federal Relay equal to the estimated percentage
listed under FOR FURTHER INFORMATION Service, toll free, at 1–800–877–8339. change between the not-seasonally-
CONTACT. adjusted Consumer Price Index for all
SUPPLEMENTARY INFORMATION: Under the
Electronic Access to This Document: Direct Loan Program, borrowers may urban consumers for December 2017
The official version of this document is choose to repay their non-defaulted and December 2018.
the document published in the Federal loans (Direct Subsidized Loans, Direct The income percentage factors
Register. You may access the official Unsubsidized Loans, Direct PLUS Loans reflected in Attachment 1 may cause a
edition of the Federal Register and the made to graduate or professional borrower’s payments to be lower than
Code of Federal Regulations via the students, and Direct Consolidation they were in prior years, even if the
Federal Digital System at: www.gpo.gov/ Loans) under the ICR plan. The ICR plan borrower’s income is the same as in the
fdsys. At this site you can view this bases the borrower’s repayment amount prior year. The revised repayment
document, as well as all other on the borrower’s income, family size, amount more accurately reflects the
documents of this Department loan amount, and the interest rate impact of inflation on the borrower’s
applicable to each of the borrower’s current ability to repay.
published in the Federal Register, in
loans. Accessible Format: Individuals with
text or Adobe Portable Document
ICR is one of several income-driven disabilities can obtain this document in
Format (PDF). To use PDF you must
repayment plans. Other income-driven an accessible format (e.g., braille, large
have Adobe Acrobat Reader, which is
repayment plans include the Income- print, audiotape, or compact disc) on
available free at this site.
Based Repayment (IBR) plan, the Pay As request to the contact person listed
You may also access documents of the You Earn Repayment (PAYE) plan, and under FOR FURTHER INFORMATION
Department published in the Federal the Revised Pay As You Earn CONTACT.
Register by using the article search Repayment (REPAYE) plan. The IBR, Electronic Access to This Document:
feature at: www.federalregister.gov. PAYE, and REPAYE plans provide The official version of this document is
Specifically, through the advanced lower payment amounts than the ICR the document published in the Federal
search feature at this site, you can limit plan for most borrowers. Register. You may access the official
your search to documents published by A Direct Loan borrower who repays edition of the Federal Register and the
the Department. his or her loans under the ICR plan pays Code of Federal Regulations via the
daltland on DSKBBV9HB2PROD with NOTICES
Dated: July 27, 2018. the lesser of: (1) The amount that he or Federal Digital System at: www.gpo.gov/
she would pay over 12 years with fixed fdsys. At this site, you can view this
Frank Brogan, document, as well as all other
payments multiplied by an income
Assistant Secretary of Elementary and percentage factor; or (2) 20 percent of documents of this Department
Secondary Education. discretionary income. published in the Federal Register, in
[FR Doc. 2018–16540 Filed 8–1–18; 8:45 am] Each year, to reflect changes in text or Portable Document Format
BILLING CODE 4000–01–P inflation, we adjust the income (PDF). To use PDF, you must have
VerDate Sep<11>2014 17:06 Aug 01, 2018 Jkt 244001 PO 00000 Frm 00020 Fmt 4703 Sfmt 4703 E:\FR\FM\02AUN1.SGM 02AUN1](https://thefederalregister.org/doc/83_FR_37951/page/1.svg)
![Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 / Notices 37803
Adobe Acrobat Reader, which is Specifically, through the advanced Dated: July 30, 2018.
available free at this site. search feature at this site, you can limit James F. Manning,
You may also access documents of the your search to documents published by Acting Chief Operating Officer, Federal
the Department. Student Aid.
Department published in the Federal
Register by using the article search Program Authority: 20 U.S.C. 1087 et seq. Attachment 1—Income Percentage
feature at: www.federalregister.gov. Factors for 2018
INCOME PERCENTAGE FACTORS FOR 2018
Single Married/head of household
Income % Factor Income % Factor
$11,860 ........................................................................................................................................ 55.00 $11,860 50.52
16,318 .......................................................................................................................................... 57.79 18,712 56.68
20,997 .......................................................................................................................................... 60.57 22,299 59.56
25,782 .......................................................................................................................................... 66.23 29,152 67.79
30,352 .......................................................................................................................................... 71.89 36,114 75.22
36,114 .......................................................................................................................................... 80.33 45,361 87.61
45,361 .......................................................................................................................................... 88.77 56,890 100.00
56,891 .......................................................................................................................................... 100.00 68,424 100.00
68,424 .......................................................................................................................................... 100.00 85,724 109.40
82,238 .......................................................................................................................................... 111.80 114,547 125.00
105,302 ........................................................................................................................................ 123.50 154,905 140.60
149,143 ........................................................................................................................................ 141.20 216,641 150.00
171,006 ........................................................................................................................................ 150.00 354,009 200.00
304,590 ........................................................................................................................................ 200.00 ........................ ........................
Attachment 2—Examples of the Attachment 1, the applicable income In the formula—
Calculations of Monthly Repayment percentage can be calculated by • M is the monthly payment amount;
Amounts following the instructions under the • P is the outstanding principal
‘‘Interpolation’’ heading later in this balance of the loan at the time the
General notes about the examples in
attachment. calculation is performed;
this attachment: • I is the annual interest rate on the
• We have a calculator that borrowers • Married borrowers may repay their
Direct Loans jointly under the ICR plan. loan, expressed as a decimal (for
can use to estimate what their payment
If a married couple elects this option, example, for a loan with an interest rate
amounts would be under the ICR plan.
we add the outstanding balance on the of 6 percent, 0.06); and
The calculator is called the ‘‘Repayment
• N is the total number of months in
Estimator’’ and is available at Direct Loans of each borrower and we
the repayment period (for example, for
StudentAid.gov/repayment-estimator. add together both borrowers’ AGIs to
a loan with a 12-year repayment period,
Based on information inputted into the determine a joint ICR payment amount.
144 months).
calculator by the borrower (for example, We then prorate the joint payment For example, assume that Billy has a
income, family size, and tax filing amount for each borrower based on the $10,000 Direct Unsubsidized Loan with
status), this calculator provides a proportion of that borrower’s debt to the an interest rate of 6 percent.
detailed, individualized assessment of a total outstanding balance. We bill each Step 1: To solve for M, first simplify
borrower’s loans and repayment plan borrower separately. the numerator of the fraction by which
options, including the ICR plan. • For example, if a married couple, we multiply P, the outstanding
• The interest rates used in the John and Sally, has a total outstanding principal balance. To do this divide I,
examples are for illustration only. The Direct Loan debt of $60,000, of which the interest rate, as a decimal, by 12. In
actual interest rates on an individual $40,000 belongs to John and $20,000 to this example, Billy’s interest rate is 6
borrower’s Direct Loans depend on the Sally, we would apportion 67 percent of percent. As a decimal, 6 percent is 0.06.
loan type and when the postsecondary the monthly ICR payment to John and
institution first disbursed the Direct • 0.06 ÷ 12 = 0.005
the remaining 33 percent to Sally. To Step 2: Next, simplify the
Loan to the borrower. take advantage of a joint ICR payment,
• The Poverty Guideline amounts married couples need not file taxes
denominator of the fraction by which
used in the examples are from the 2018 we multiply P. To do this divide I, the
jointly; they may file separately and interest rate, as a decimal, by 12. Then,
U.S. Department of Health and Human subsequently provide the other spouse’s
Services (HHS) Poverty Guidelines for add one. Next, raise the sum of the two
tax information to the borrower’s figures to the negative power that
the 48 contiguous States and the District
Federal loan servicer. corresponds to the length of the
of Columbia. Different Poverty
Guidelines apply to residents of Alaska Calculating the monthly payment repayment period in months. In this
and Hawaii. The Poverty Guidelines for amount using a standard amortization example, because we are amortizing a
2018 were published in the Federal and a 12-year repayment period. loan to calculate the monthly payment
daltland on DSKBBV9HB2PROD with NOTICES
Register on January 18, 2018 (83 FR amount under the ICR plan, the
2642). The formula to amortize a loan with applicable figure is 12 years, which is
• All of the examples use an income a standard schedule (in which each 144 months. Finally, subtract the result
percentage factor corresponding to an payment is the same over the course of from one.
the repayment period) is as follows:
adjusted gross income (AGI) in the table • 0.06 ÷ 12 = 0.005
in Attachment 1. If an AGI is not listed M = P × <(I ÷ 12) ÷ [1 ¥ {1 + (I ÷ • 1 + 0.005 = 1.005
in the income percentage factors table in 12)}∧¥N]> • 1.005 ∧ ¥ 144 = 0.48762628
VerDate Sep<11>2014 17:06 Aug 01, 2018 Jkt 244001 PO 00000 Frm 00021 Fmt 4703 Sfmt 4703 E:\FR\FM\02AUN1.SGM 02AUN1](https://thefederalregister.org/doc/83_FR_37951/page/2.svg)
![37806 Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 / Notices
SAMPLE FIRST-YEAR MONTHLY REPAYMENT AMOUNTS FOR A MARRIED OR HEAD-OF-HOUSEHOLD BORROWER—
Continued
Family Size = 3
Income Plan $20,000 $40,000 $60,000 $80,000 $100,000
40,000 ICR ....................... 0 314 390 415 457
IBR ........................ 0 110 360 - -
PAYE .................... 0 74 240 407 -
REPAYE ............... 0 74 240 407 574
10-Year Standard 444 444 444 444 444
60,000 ICR ....................... 0 320 586 622 686
IBR ........................ 0 110 360 610 -
PAYE .................... 0 74 240 407 574
REPAYE ............... 0 74 240 407 574
10-Year Standard 666 666 666 666 666
80,000 ICR ....................... 0 320 654 830 914
IBR ........................ 0 110 360 610 860
PAYE .................... 0 74 240 407 574
REPAYE ............... 0 74 240 407 574
10-Year Standard 888 888 888 888 888
100,000 ICR ....................... 0 320 654 987 1,143
IBR ........................ 0 110 360 610 860
PAYE .................... 0 74 240 407 574
REPAYE ............... 0 74 240 407 574
10-Year Standard 1,110 1,110 1,110 1,110 1,110
[FR Doc. 2018–16582 Filed 8–1–18; 8:45 am] the email. It is recommended that 00001951] is available at: https://eere-
BILLING CODE 4000–01–P attachments with file sizes exceeding exchange.energy.gov/.
25MB be compressed (i.e., zipped) to
ensure message delivery. Responses Confidential Business Information
DEPARTMENT OF ENERGY must be provided as a Microsoft Word
Because information received in
(.docx) attachment to the email, and 12
response to this RFI may be used to
Notice of Request for Information (RFI) point font, 1 inch margins. Only
structure future programs, funding and/
on Understanding Catalyst Production electronic responses will be accepted.
and Development Needs at National The complete RFI document is located or otherwise be made available to the
Laboratories at https://eere-exchange.energy.gov/. public, respondents are strongly advised
to not include any information in their
AGENCY: Bioenergy Technologies Office, FOR FURTHER INFORMATION CONTACT: responses that might be considered
Office of Energy Efficiency and Questions may be addressed to Jim business sensitive, proprietary, or
Renewable Energy, Department of Spaeth, (720) 356–1784, or otherwise confidential. If, however, a
Energy. CustomCatalystRFI@ee.doe.gov. Further respondent chooses to submit business
ACTION: Request for information. instructions can be found in the RFI sensitive, proprietary, or otherwise
document posted on EERE Exchange. confidential information, it must be
SUMMARY: The U.S. Department of clearly and conspicuously marked as
Energy (DOE) invites public comment SUPPLEMENTARY INFORMATION: DOE
posted on its website a RFI to solicit such in the response as detailed in the
on its Request for Information (RFI) to
feedback from industry (including but RFI [DE–FOA–00001951] at: https://
understand research, capabilities and
yet-to-be addressed challenges pertinent not limited to research organizations, eere-exchange.energy.gov/.
to production scale-up of catalysts for manufacturing organizations, catalyst Factors of interest to DOE when
the conversion of biomass and waste manufacturers, and catalyst research evaluating requests to treat submitted
streams. Additionally, through this RFI, consortia), academia, research information as confidential include: (1)
the Bioenergy Technologies Office laboratories, government agencies, and A description of the items; (2) whether
(BETO) seeks to understand other biofuels and bioproducts and why such items are customarily
enhancement capabilities of process stakeholders on ‘‘catalyst productions treated as confidential within the
development units at the National capability for biochemical and industry; (3) whether the information is
Laboratories in order to increase their thermochemical processes.’’
generally known by or available from
impact. Specifically, BETO seeks information to
other sources; (4) whether the
help identify and understand additional
DATES: Responses to the RFI must be information has previously been made
areas of research, capabilities, and yet-
received no later than September 14, available to others without obligation
to be-addressed challenges pertinent to
2018. production scale-up challenges concerning its confidentiality; (5) an
daltland on DSKBBV9HB2PROD with NOTICES
ADDRESSES: Interested parties are to (typically in multi-kilogram quantities explanation of the competitive injury to
submit comments electronically to of novel catalysts used in technology the submitting person that would result
CustomCatalystRFI@ee.doe.gov. development and engineering solutions from public disclosure; (6) when such
Responses must be provided as for the efficient conversion of information might lose its confidential
attachments to an email. Include lignocellulosic, waste, and algal character due to the passage of time; and
‘‘Understanding Catalyst Production feedstocks to produce biofuels and (7) why disclosure of the information
and Development RFI’’ as the subject of bioproducts). The RFI [DE–FOA– would be contrary to the public interest.
VerDate Sep<11>2014 17:06 Aug 01, 2018 Jkt 244001 PO 00000 Frm 00024 Fmt 4703 Sfmt 4703 E:\FR\FM\02AUN1.SGM 02AUN1](https://thefederalregister.org/doc/83_FR_37951/page/5.svg)
Document Created: 2018-08-02 01:28:53
Document Modified: 2018-08-02 01:28:53
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice. | |
| Dates | The adjustments to the income percentage factors for the ICR plan formula contained in this notice are applicable from July 1, 2018, to June 30, 2019, for any borrower who enters the ICR plan or has his or her monthly payment amount recalculated under the ICR plan during that period. | |
| Contact | Ian Foss, U.S. Department of Education, 830 First Street NE, Room 113H2, Washington, DC 20202. Telephone: (202) 377-3681. Email: [email protected] | |
| FR Citation | 83 FR 37802 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR