How to Recertify Your Student Loans for an IDR Plan

For borrowers utilizing Income-Driven Repayment (IDR) plans for federal student loans, an annual recertification process is necessary. This yearly update ensures your monthly loan payments remain aligned with your current financial situation, specifically your income and family size. Recertification allows your loan servicer to recalculate your payment amount based on updated financial details. Even if your income or household size has not changed, annual recertification is a requirement to continue benefiting from your IDR plan.

Understanding Recertification Requirements

All federal student loan borrowers enrolled in an IDR plan must resubmit information about their income and family size each year. This annual update ensures IDR plan payments are determined by a percentage of your discretionary income, calculated based on your income and household size. The primary income information used for recertification is your Adjusted Gross Income (AGI) from your most recent federal income tax return. If your income has significantly decreased since your last tax filing, you may provide alternative documentation reflecting your current income.

Your family size also plays a significant role in determining your IDR payment, as it helps establish your discretionary income threshold. For recertification purposes, family size generally includes yourself, your spouse, and any children you financially support. It can also include other individuals who live with you and receive more than half of their financial support from you. Loan servicers will send notifications as your recertification due date approaches, typically 35 days before the deadline. Adhering to this deadline helps avoid potential increases in your monthly payment or changes to your repayment plan.

Preparing Your Information and Documents

Gather all necessary information and documents before initiating the recertification process. The most common document for income verification is your most recent federal income tax return, where your Adjusted Gross Income (AGI) is reported. You can obtain a transcript of your tax return directly from the Internal Revenue Service (IRS) website. If your current income is substantially lower than what is reflected on your most recent tax return, you may need to provide alternative documentation.

In such cases, recent pay stubs, a letter from your employer detailing your current salary, or documentation of unemployment benefits or Social Security benefits might be requested. For accurate family size determination, list all individuals who meet the criteria for inclusion, ensuring you have their full names and relationship to you. Contact your loan servicer if you are uncertain about which specific documents are needed for your unique financial situation or if your income has changed significantly since your last tax filing. This ensures you have all required materials ready, streamlining the submission process.

Submitting Your Recertification

Once you have gathered all necessary information and documents, you can proceed with submitting your recertification application. The most common and recommended method is online through the Federal Student Aid (FSA) website. To do so, log in using your Federal Student Aid (FSA) ID and navigate to the income-driven repayment plan section. Within the online portal, indicate that you are a returning IDR applicant seeking to recertify.

The online application will prompt you to input your prepared income and family size details. You may also be given the option to provide consent for the Department of Education to access your federal tax information directly from the IRS, which can expedite the process and potentially enable automatic future recertifications. If you choose to manually upload documents, such as pay stubs or other income verification, the online system will provide a secure method for doing so. After entering all information, carefully review everything for accuracy before finalizing your submission.

For those who prefer, recertification can also typically be completed by mail, by sending the completed application and supporting documents to your loan servicer. While less common, some servicers may also accept recertification by phone.

Post-Submission Steps

After submitting your recertification application, confirm its receipt and monitor its processing. You should typically receive a confirmation email or see an updated status within your online loan servicer account shortly after submission. Loan servicers generally take a few weeks to process recertification applications, though processing times can vary. Regularly check your loan servicer’s online portal and any communications from them for updates or requests for additional information.

Once your recertification is processed, your loan servicer will notify you of your new monthly payment amount and the effective date of that payment. Review this information to ensure it aligns with your expectations and the details you provided. If you believe there is an error in the new payment calculation or have questions, contact your loan servicer immediately to discuss your concerns. Prompt action after receiving your new payment information helps ensure your IDR plan continues to be correctly applied.