I have a question regarding the 10% cap under the ICR plan.

This is what the DoE says:

If payments do not cover interest, unpaid amount is capitalized once each year
Capitalization will not exceed 10% of the original amount owed when borrower entered repayment
Interest will continue to accumulate but will no longer be capitalized

What does it mean that interest will “continue to accumulate”?

Let’s say I borrow $100 and the unpaid interest is capitalized until the loan balance reaches $110

What happens to the interest after this point?  If it’s not added to the loan where does it accumulate?

It accumulates in limbo.  It adds up and they track it, but it doesn’t get capitalized and so it does not itself generate interest.  Make sense?