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Student loan income driven repayment plan inflated monthly payment

Started by liverton11, August 01, 2017, 08:45:40 pm

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Hi, I recently consolidated my student loans with the federal government via Great Lake and I am having some troubles with the monthly payments.

I owe about $94000 and my wife owe about $20000, my salary is about $57000 while hers is about $32000.  Based on the income driven repayments before, I pay about $350 a month to my loan (not sure about hers).

Here is the problem, in year 2016 I took out my retirement account to pay off my credit card loans, which was about $42000, but I believe the Federal government is using my AGI of 2016, which includes my retirement withdrawal (total household income was over $120k that year as a result), to calculate my income driven monthly payment plan.  Now my monthly payment is almost $700.

Do sudden withdraws/payouts like what I experience typically get calculated into income driven plan?  It seems somewhat unfair since I don't actually earn that in 2017 or ever.

Any comments are appreciated, thank you!


Yes, they use your AGI for the standard payment calculation method.

If your income has changed significantly (which is has because you haven't withdrawn from retirement), you can re-certify your income using the alternative income-documentation method.

You can't do this online - you need to mail in the certification form and including current income documentation (paystubs, etc) showing your current income. Make sure you mail it in certified so you have proof they received it, and then follow up to ensure the correct payment.