My IBR payment was just recalculated.  I used alternative documentation because my income was higher than the latest tax statement on file (2012).  It was enough that I didn’t feel it was right not to submit the alternative documentation.  I was expecting my payment to go up but it went up much more than I expected.  I suspect that Fed Loan Servicing used my gross and not my AGI from the tax stub.  I am seeking for information on how Fed Loan is supposed to process these calculations before I call them on Monday.  Should I have submitted more than just a current pay stub or should that have been sufficient for Fed Loan to use to correctly calculate AGI.  Should I have sent the tax from that I just filed for this year? 

Also, is there information available as to how we might interpret what is a reasonably different income?

intheweeds, I am in the exact same position! Did you ever get this resolved? My husband and I are both on IBR and PSLF, and after the review was completed, our payments are going up substantially. Our income did increase, but it doesn’t correspond with the large increase. I’ve never even heard of alternative documentation, or that it was an option! We put a lot of money into requirement, healthcare premiums, FSAs, etc. Not to mention that we’re getting ready to close on a house and it totally screws our budget. We’re not going to be completely broke, but we bought the house on the assumption that our finances were in proper order and that we could put money into savings.  Grrr… Any thoughts would be appreciated.

No, I did not get this resolved satisfactorily.  I only did the alternative documentation because the IRS only had my 2012 tax return to populate my IBR recertification form with and I was not comfortable saying that my 2012 return was an accurate or close reflection of my current income.  So, I provided a copy of my paystub as alternative documentation. I knew my payment would go up as a result, but it would have been the right thing to do. I wish I had known to fax them the 2013 tax return instead sending my pay stub.  I did not know that sending my pay stub would end up causing my payment to be based upon my gross income and not my AGI.  I will never do this again!!  If need be, I would submit my tax return instead from now on.  It was suggested to me by one of FedLoan Servicing Center’s customer service reps that I resubmit the recertification application using my tax return.  I did that and they still won’t adjust my payment and are basing my payment off of gross income.  The only suggestion that I have for you is for you to ask for a supervisor to review your situation.  I have found that sometimes that helps if FedLoan Servicing has made a mistake.  But even with a supervisor, you have to be pretty persistent and keep explaining how what they did was wrong.  I can’t guarantee that will work for you, but it is worth a try.  Take care and good luck.