Income-Driven Repayment (IDR): Handling Recalculations

The IDR Recalculation Process

Income-Driven Repayment plans are based on your prior year's tax return. But what happens if you lose your job, take a pay cut, or have a child in the middle of the year? You do not have to wait until your annual recertification to get a lower payment.

Filing a Mid-Year Recalculation

You can request a recalculation of your IDR at any time. To do this, go to StudentAid.gov and submit an updated IDR application. You will be prompted to select "My income has significantly decreased."

Instead of pulling your old tax returns, you will need to provide alternative documentation of income. This usually means your most recent pay stub. If you are currently unemployed, checking the box stating you currently have no taxable income can legally drop your federal student loan payment to $0 exactly the following cycle.