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IBR and income increase
December 9, 2017
4:41 pm
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December 9, 2017
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Hi,
I am under the IBR plan and I had become unemployed for some time, since I’m under the IBR I reported the loss of employment and my payment is $0. However recently I started a new job so my questions are
1) Are we required to report our new income immediately under the IBR?
2) If I’m not required should I still report it right away or wait until my annual recertification period?
Thanks,
Matt

December 9, 2017
6:40 pm
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Indiana
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Forum Posts: 327
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May 3, 2014
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Hey Matt,

I’m not aware of any requirement to immediately recertify.

The way my loan servicer explained it to me was that the change in income would be picked up in future certifications.

Unfortunately, I don’t know of anything on the Department of Education website that indicates one way or another.

Best wishes,

Michael

January 10, 2018
1:29 pm
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Heather
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I currently work as a flight attendant where my income is variable — the more you fly, the more you make. I am on an IBR plan that is based off a “ground-duty” position I took last year before returning to flying. My payments skyrocketed based off of this new income, and now that I am back to strictly flying, I am having trouble making my minimum payments. Is switching off of the IBR plan a better solution if my interest rates are locked in?

January 10, 2018
1:49 pm
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Indiana
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Forum Posts: 327
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May 3, 2014
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The repayment plan you are on has no effect on your interest rates.

As far as the income driven repayment plans go, they usually use your income on your most recent tax return. If your most recent tax return shows that you made more money than what you are currently making, you submit your two most recent pay stubs to calculate your payments.

You might also want to look at the REPAYE plan. IBR payments are 15% of your discretionary income, but REPAYE payments are only 10% of your discretionary income. There are other differences between these two plans, but it could be a chance to save some money.

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