Annual Review of Financial Circumstances

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With all income-driven repayment plans, the loan holder reviews the borrower’s financial circumstances to recalculate the monthly payment amount each year. Servicers must require borrowers to submit annual income documentation no more than thirty-five days before the anniversary date. Between sixty and ninety days before that deadline, servicers must notify borrowers of the upcoming deadline and the consequences of failing to meet the deadline. If the borrower fails to certify family size, the Department will assign a family size of one for that year.

 

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