Hello,
Like many folks I would imagine, my IBR loans are serviced by myedaccount.com.  Come November, I will have been on IBR for a year and will have to recertify my income to continue demonstrating a partial financial hardship.  When I went on IBR, I filled out a form authorizing the IRS to release my tax returns each year.  I am, however, incredibly skeptical that myedaccount will process anything from the IRS in time so that I do not get kicked off of IBR.  I would like to send my tax return to myedaccount to ensure that this does not happen.  Should I do so?  How does income recertification usually proceed?  Has anyone had problems with myedaccount and having their income recertified each year?  Thanks Heather and others!

You are right that you should take steps to make sure your lender has updated income information for you before the annual anniversary of your enrollment in IBR. I’m hearing that it can take up to three months to process the paperwork and missing your deadline can result in a much higher payment that doesn’t take your income into account. Currently, lenders aren’t required to notify borrowers about the deadline, and the IRS waivers are all jacked up.

If anybody is unsure about their IBR anniversary date or what type of documents you have to submit, contact your loan servicer for more information.

Lenders will soon be required to notify borrowers in advance and stop penalizing borrowers for servicing delays.  It’s not entirely clear yet when these new requirements will take effect.