They wouldn't even give me a straight or consistent answer about whether or not I had to mark the box about whether my tax returned reasonably reflected my current income, which would have meant $0 payments vs ~$350 monthly payments. In the end I played it safe and submitted my new income stubs and paid the $350/month.
Yeah, that was probably smart--though it's so frustrating not to be able to get straight/consistent answers, in this case, I think it's because what "reasonably reflects" means hasn't been defined by the U.S. Department of Education (or through court cases, yet). At least, I can't find any definition of what "reasonably reflects" means, which is a fairly vague phrase!
In your case things are a little different--you already submitted your IBR/PAYE application. They will most likely calculate yours payments based on that--I doubt they will ask for current income (but if they do, you should provide it).
Yeah, I hope so--of course if they do ask, I'll provide it.
I think the bigger question is, are you supposed to update your servicer whenever your income bumps up, or can you wait until the next yearly application. I doubt anyone would hesitate to provide new info if they lost a job or their salary fell, but I doubt many would notify their servicer if their income went up. I doubt it'd matter except perhaps for PSLF eligibility. I'd look at your MPN and the Dept of Ed's website on IBR/PAYE rather than ask your loan servicer--as mentioned above, they don't always give a consistent answer (ie., they don't actually know the real answer).
Yeah, I definitely think that's good advice. While I don't know for certain, I'm pretty sure you are not required to update your servicer whenever your income increases. The only thing I've found in the
federal IBR/PAYE/ICR application that relates to this, are these statements:
From page 6: "After entry into the IBR or Pay As You Earn plan, you must annually certify your family size and provide income documentation for determination of whether you continue to have a partial financial hardship. Your loan holder(s) will notify you of the deadline by which you are required to provide this documentation. Your monthly payment amount may be adjusted annually. The new payment amount may be higher or lower, depending on the income documentation and family size information you provide each year."
Note that the only reporting requirement it mentions is the annual re-certification of your family size and income documentation.
From page 7: "IMPORTANT INFORMATION ABOUT ALTERNATIVE DOCUMENTATION OF INCOME
YOU ARE REQUIRED to provide alternative documentation of your income if:
- You did not file a federal tax return for the either of the two most recently completed tax years; or
- You have been notified by your loan holder(s) that alternative documentation of your income is required.
YOU MAY provide alternative documentation of your income if your Adjusted Gross Income (AGI), as reported on your most recently filed federal tax return, does not reasonably reflect your current income, because, for example, of a loss of or change in employment by you or your spouse.
YOU ARE NOT REQUIRED to provide alternative documentation of your income if you can provide a copy of your most recently filed federal tax return or an IRS tax return transcript from either of the two most recently completed tax years; and that documentation reasonably reflects your current income."
Here, note that it specifically says you
may provide documentation of your income if your AGI as reported on your most recently filed federal tax return is different from your current income, but it does not say that it is required (
unless requested by your loan holder, it sounds like).
...I could be wrong, of course, but I feel like these statements make it pretty clear (right?) that the only reporting that is required is for the annual re-certification.
