When I was completing the new annual documentation income driven form today I was anticipating it being quite similar to the previous annual forms.  However, I noticed that it requires quite a bit of new information, some of which I feel is irrelevant.

For instance, I am submitting information for the category: “I am already in an income-driven repayment plan and am submitting documentation for the annual recalculation of my payment”.  I happen to be on IBR.

However, the new form requires that my spouse sign my form and provide his annual tax information even though it is not used in our particular calculation for IBR payments (married filing separately).  In fact, the request to my spouses income has a note that says, “...your spouse will be required to co-sign your application and provide documentation of his or her income.  This income documentation will only be used by your loan servicer while you are being considered for or are repayment your loans under the REPAYE plan.”

I still believe that following through with all of this (my spouse signing the form and providing his income information) should result in my annual IBR payment being adjusted as appropriate (and not including my spouses income based on our tax filing).  However, the introduction of the REPAYE plan and the use of a one-size-fits-all annual documentation form for all income driven repayment plants makes the process quite confusing and unclear what the final result will be.

Do others agree that I am on the right path with assuming that as long as I select the appropriate reason for the form (quoted above) that the loan servicer should keep me in IBR and ignore my spouses information?

I’d call your loan servicer and see what they suggest. I just filled one out last month and it was the older form. Since they will be the ones processing it, I’m sure they can guide you on what to do. I checked the newer form and you are right, it seems to require the spouse’s signature, but when you look at the bottom information table a few pages later in the application, it says that for IBR only your signature is required, and not your spouse. Probably an oversight. If you get any info about what your servicer instructs you to do, please post it here so we can know how to proceed if we are in the same boat!

I agree completely with your post. It is disconcerting that the new Income-Drive Repayment Plan Request form (OMB No. 1845-0102, Exp. Date 10/31/2018) requires spouse signature and spouse income information for married filing separately borrowers under IBR. As you said, there is no reason to ask for this information under IBR because spousal income is not relevant to married filing separately borrowers under IBR. Spousal income is only relevant to married filing separately borrows under REPAYE. Were you referring to the paper form or the electronic form on StudentLoans.gov? I noticed that the new electronic form also requires this information. I would hope that your loan servicer keeps you on IBR and ignores your spouse’s information, but this process seems ripe for loan servicer errors.

Heather and others, here is a summary of the issue raised above. Section 4B of the new Income-Driven Repayment Plan Request form (OMB No. 1845-0102, Exp. Date 10/31/2018), which is linked on your 12/17/15 blog post, appears to require spouse SSN, name, and DOB (¶ 12) and spouse federal income tax return (¶ 26), even for borrowers under IBR who do NOT wish to repay their loans jointly with their spouse (¶ 13) and did NOT file their federal tax returns jointly with their spouse (¶ 14). The new form seems to be taking a one-size-fits-all approach, even though ¶ 26 states that spouse federal income tax return information will “only be used for the REPAYE Plan” and the chart on page 8 of the form states that married borrowers under IBR must only provide income documentation for their spouse if they “file a joint federal income tax return.” Do you have any thoughts on this issue? Should married borrowers under IBR, who filed federal taxes ‘married filing separately,’ provide this information to their loan servicer? One concern is that loan servicers may misuse this information or incorrectly use spouse income information to miscalculate the borrower’s IBR payment amount, or inadvertently switch the borrower to REPAYE. Requiring this unnecessary information may also slow the processing of annual re-certifications under IBR.

I agree with everything you guys are saying. I also found that when I try to use the repayment calculator that even when I select “married filing separately” it still comes up with a box to request my spouses income and bases repayment estimates even for IBR which it shouldn’t as our income being together making the estimates extremely high.  Are you guys seeing the same on that as well?

Good point. Yes, I’m seeing the same error in the StudentLoans.gov Repayment Estimator. If one selects Tax Filing Status “Married Filing Separately” and inputs self AGI and spouse AGI as requested, then the Repayment Estimator INCLUDES spouse income under the IBR monthly payment estimate, when it should only include spouse income under the REPAYE monthly payment estimate.

According to DOE regulations at 34 CFR 685.221(a)(1): “For a married borrower filing separately, AGI include only the borrower’s income.”

This error in the Repayment Estimator suggests that loan servicers may make the same error when they process annual re-certification forms for married filing separately borrowers under IBR.

If anyone contacts FedLoan Servicing or another loan servicer about this issue and receives an explanation, please update the Forum. Thanks.

Here is an explanation from DOE about why the new form requires spouse income tax returns:
“The revised IDR Request form requires all married borrowers who filed separate federal income tax returns to provide documentation of their spouse’s income, even if they have not specifically requested the REPAYE Plan (unless certain exceptions apply). The reason for this requirement is to accommodate instances where the borrower is not eligible for his or her initial IDR plan choice but is eligible for the REPAYE Plan.”
http://www.nasfaa.org/news-item/7031/GEN-15-22_Approval_of_the_Income-Driven_Repayment_Plan_Request_for_the_Direct_Loan_and_FFEL_Programs

What would be a legitimate reason someone is not eligible for IBR? I thought anyone that had a direct or FFEL loan was eligible for IBR. Are they trying to limit new loans or consolidation loans from older borrowers from accessing IBR?

I just filled out the application and I see the changes. My wife reapplied in December, under the old format, and was not required to include my income (we file separately). I filled out the application and provided my spouse’s information as requested, in the hopes they will get it right and not actually include it.  Question 26 does say the income information “will only be used for the PAYE plan.” I included it then called the loan servicer to have them make a notation on my file. They said I have to call the government if there’s a form glitch.

I went ahead and filed it with spousal income information because I have no confidence the government will remedy any glitch in the next month, and I don’t want them to reject the application, which could default me into standard repayment and send the repayment amount skyrocketing. The approach might be different for someone with a spouse with a large income that could potentially take you out of the income-based plan if included. Hopefully this is a non-issue.

I just spoke to my loan servicer about this last night. As of our conversation last night she thought it could be problematic that my husband and I answered “no” that we are not able to get our spouses income information and get our spouse to sign our application. I explained that we answered no because we file our taxes separately (forgoing a tax credit) specifically in order to qualify for repayment plans that are independent of one another and I am not willing to be associated with his loans so he is not able to get my signature likewise he will not sign my application either. After consulting with a superior in her office, this morning, the representative got back to me and said that she had good news. She said it was in fact ok for us to respond this way and it would not negatively impact our eligibility for loan forgiveness and that we may continue to respond this way in the future. This will allow us to take advantage of the whole point of filing separately.

The whole point of us filing separately and forgoing any tax credits for being married was because we decided it was more important to pay off our loans completely separately of one another over the next couple of decades than to get a tax credit for being married.  In my opinion, it would not be just for them to require our separate tax information after we have relied on the fact that if we file separately (and forgo a tax credit) we can have independent student loan repayment plans that do not take into account one another’s income.

Joe - 02 February 2016 11:25 PM

I just filled out the application and I see the changes. My wife reapplied in December, under the old format, and was not required to include my income (we file separately). I filled out the application and provided my spouse’s information as requested, in the hopes they will get it right and not actually include it.  Question 26 does say the income information “will only be used for the PAYE plan.” I included it then called the loan servicer to have them make a notation on my file. They said I have to call the government if there’s a form glitch.

I went ahead and filed it with spousal income information because I have no confidence the government will remedy any glitch in the next month, and I don’t want them to reject the application, which could default me into standard repayment and send the repayment amount skyrocketing. The approach might be different for someone with a spouse with a large income that could potentially take you out of the income-based plan if included. Hopefully this is a non-issue.

Joe, did this work out for you?  Are you paying a lot more now?  Because I just submitted this week and did what nwvsj did - I said that I could not access my spouse’s financial information.  I did this after I called my loan servicer.  I called because although student loans told me that my spouse had to sign, she didnt fit any of the criteria requiring a signature.  The loan servicer said either have her provide all of her information nonetheless or say that I cannot reasonably access her financials.  I chose the latter.  I feel that this is a terrible development.  I similarly fear that they will use my spouse’s income to calculate my repayment, despite the fact that we have filed separately for three years and paid the attendant fees.