New Rules for Student Loan Repayment Programs (IBR, ICR, and PAYE), Effective July 1, 2013
Effective July 1, 2013, student loan servicers must comply with new rules when they perform their loan payment recalculation for the IBR, ICR, and PAYE programs.
Annual Documentation for IBR, ICR and PAYE
If you are repaying your student loans under one of the federal repayment programs that takes into account your income (income-based repayment, income-sensitive repayment, and the new pay as you earn program), you must submit documents regarding your income and family size every year in order to remain eligible for the program. Your payment may change based on this documentation.
Holders Must Send Annual Notice to Student Loan Borrowers
Starting July 1, 2013, student loan holders must send notices to student loan borrowers, requesting that they submit this information. If a borrower provides the documents within ten days of the deadline, the loan holder must continue charging the previous payment amount until it has processed the documents and recalculated the payment.