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The Student Loans Reporting Rundown: Recertification vs. Recalculation

by Wes Read, CPA, CFP® | July 14, 2022

Recertification: Required annual reporting of income to your student loan servicer to update your IDR payment for the upcoming year.

Recalculation: Reporting your income anytime outside of your normal recertification timeline. Why would you do this? Read on!

Did you know you are NOT required to recertify your income before March 2023? If you get a notice from your student loan servicer asking you to recertify before then, simply add 12 months to that date and THAT is your actual due date.

However, you can elect to self-report before then. Why would you self-report? If you’re out of work, or your income is temporarily or permanently lower than it was prior to the payment pause, then you can self-report your income now to lower your required payments which are set to resume this September.

Unless of course the government decides to extend the moratorium for a seventh time.

If you self-report this year, you don’t even need to show income documents. You can literally report whatever you want. After March 2023, anytime you report your income outside the normal recertification timeline to recalculate your required payment, you will need to show proof of reduced income.

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