Income-Driven Repayment Plan Recertification Doesnt Have to Be Burdensome, Says Ameritech Financial
Summary
However, many borrowers find that enrollment in a federal income-driven repayment plan (IDR) can help them afford their monthly payments and stay current on their loans.Income-driven repayment plans calculate payments on a borrowers income and family size rather than a set payoff period, such as the standard 10 years.The application to enroll in an IDR requires documentation showing annual income and family size to help servicers calculate the new monthly payment.However, because income and family size can change, the Department of Education requires IDR enrollees to recertify their information each year to remain in the program.Ameritech Financial urges borrowers who are in an IDR to be diligent about submitting their recertification early to give their servicer enough time to process the paperwork.