You may learn how to recertify your income-driven repayment (IDR) plan with this step-by-step tutorial.
As part of your recertification, you must provide updated information about your income and family size if you’re enrolled in an IDR plan. You may ask for your monthly loan payment to be reassessed if your income or family size has changed, which can result in a lower payment. You may also record your income on your own.
Visit https://studentaid.gov right now to get started.
Don’t forget to sign your application and submit it.
Self report income for an income-driven repayment (IDR) plan – Step by Step
1. Navigate to the IDR plan application.
2. Select “Submit annual re-certification of my income” and log in using your username and password (FSA ID).
3. Answer the questions regarding your employment information, family size, and marital status before selecting continue.
4. Answer the questions confirming tax return and income changes before entering your gross annual income.
5. Confirm your personal information.
6. Certify your income
Sign your IDR plan application then submit it.
Do I qualify for an income-driven repayment plan?
Your federal student loan payments will often be reduced under income-driven repayment options. You will, however, probably wind up paying more in interest over time—sometimes much more—every time you make smaller installments or lengthen your payback term. Additionally, if you still owe money at the conclusion of your payback term, you can be subject to paying income tax on any amount that is forgiven in accordance with current Internal Revenue Service regulations.
What is an income-driven repayment plan, and how do I apply?
If you have any questions prior to submitting an application for an income-driven repayment plan, speak with your loan servicer. You may choose which of these programs is best for you with the assistance of your loan servicer.
You must fill out the Income-Defined Repayment Plan Application, which we have described in this tutorial, in order to apply. The application is available online or on paper, which you may get from your loan servicer. You have the option to choose an income-driven repayment plan on your own via the application, or you may ask your loan servicer to identify the income-driven plan (or plans) you are eligible for and enroll you in that one with the lowest monthly payment.
You must submit a separate application to each servicer if you have loans with more than one servicer that you desire to repay under an income-driven plan.
When you submit your application, you will be requested to give income information that will be used to compute your monthly payment amount for all income-driven repayment plans, as well as to assess your eligibility for PAYE or IBR plans. This might be alternative income documents or your adjusted gross income (AGI).
If you, your AGI will be employed.
- You’ve just submitted a federal income tax return, and;
- Your present income and the income shown on your most recent federal income tax return are not considerably different.
One of the following options is available for providing your AGI:
- Utilize the IRS Data Retrieval Tool on the Income-Defined Payment Plan Application to transfer income data from your federal income tax return when submitting your application;
- Use the Paper Income-Defined Payment Plan Application and include a paper copy of your most recent IRS tax transcript or federal income tax return.
Alternative documentation of your income will be used to determine your eligibility and determine the amount of your monthly payment if you haven’t filed a federal income tax return in the last two years or if your current income differs significantly from the income reported on your most recent federal income tax return (for instance, if you lost your job or experienced a drop in income). You may perform one of the following things to provide alternative documentation:
- You must submit a paper Income-Defined Payment Plan Application and alternative income verification, such as a pay stub, if you presently receive taxable income;
- You may specify on the online or paper application whether you presently do not have any income or if you solely get non-taxable income. You are not obliged to show further proof of your income in this situation.
Your servicer may need a few weeks to complete your application since they need to gather proof of your family size and income, depending on whether you applied online or on paper and if you included all essential papers. While reviewing your request for an income-driven repayment plan, your loan servicer may apply a deferral to your student loan account if you are presently repaying your debts according to a different repayment schedule.