My husband and I live within our means, and I work as a public service attorney, so our income is not the highest.  We also live in NYC, so although we live frugally, our rental amount will make your bank account weep on a monthly basis.  I am getting ready to apply for my first IBR recalculation.  I went from a fellowship position to a full-time position, so my income roughly doubled.  (My 2012 tax year was split because for the first 3 months I made the fellowship salary and the remainder of the year was my new annual salary.)  I thought this would mean that my IBR payment would double.  Instead the IBR calculator says the amount would be 300% higher than what I was paying!

Here is my financial situation:
* My “adjusted gross income” is actually $19,500 higher than my “taxable income.”
* I live in NYC and 36% of my income went directly to taxes.
* If you calculate what my net income for an entire year, it would still be $16,667 less than the “adjusted gross income” on my tax return from 2012.

The IBR calculator says that if I use my flat “adjusted gross income” my new payment would be $550 per month.  This is $400 more per month.  We knew it would go up, but that is a big increase, and would be very difficult for us.  (I file MFJ, but I have the only income in our household of 2.)  Using the IBR calculator and formula there are two potential other options:
1. $300 per month using my “taxable income” level from 2012 tax return or
2. $340 per month using my net income from my pay stubs.

What are the odds I can convince them to allow me to pay one of the lower payments?