Alternative Documentation of Income (ADOI)

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Borrowers seeking to certify income using documentation other than a federal tax return report receiving inconsistent or inaccurate information. Borrowers who do not file federal tax returns or whose most recent tax return does not accurately reflect their current financial circumstances are permitted to submit alternative documentation of income (ADOI). The Department of Education only requires a pay stub to certify income, but comments from borrowers report that their servicers provide very little guidance on how to certify annual income through the ADOI process. Borrowers report that sometimes they are asked to submit an additional “self-certifying statement” declaring their annual income, without knowing whether it will be sufficient to qualify for an income-driven repayment plan.