Gambling can massively affect AGI since you’re supposed to list GROSS earnings as “other income” on line 27 of form 1040. Then, you itemize deduce your losses Schedule A.

For instance, you can wager $65,000 and lose $65,000 making your net gambling income ZERO. However this will add $65,000 to you AGI. So if you are self-employed and make $20,0000/year, your AGI will now be $85,000.

Will the student loan companies adjust for this or am I screwed?

Please help. This literally struck me 10 min. after going to bed, and I felt it was so important that I had to get up and research it.

Below is an article discussing how it affects seniors:
http://moneyover55.about.com/od/taxtips/a/Hidden-Gambling-Tax-Hits-Retirees-Hard.htm

From the article:
“David’s MAGI would have been less than $80,000 without the gambling. Instead it was over $630,000. Instead of paying Medicare Part B premiums at $105 a month he’ll be paying $335 a month, and increase of $2,760 per year.”