If you opened your student loan bill and gasped because your payment just doubled—or even tripled—you’re not alone. Thousands of borrowers are facing sticker shock during their income-driven repayment (IDR) plan recertification. But the increase likely has less to do with your actual income and more to do with the proof of income you submitted and recent formula changes in repayment plans.
Here’s what you need to know—and what you can do about it.
There are two big reasons:
During COVID, many borrowers enrolled in IDR plans using older tax returns from 2020 or 2021—years when they were earning less due to job loss, underemployment, or being in school. Now in 2025 or 2026, they’re employed full-time or earning more.
If you connect your IRS data via studentaid.gov, the system pulls your latest tax return—most likely from 2024—which may reflect your current higher income. That alone can send your monthly payment soaring 2x or 3x what you paid previously.
If you were enrolled in the SAVE plan, your payments were based on 225% of the federal poverty level, meaning a larger chunk of your income was shielded from being counted toward loan payments.
But if you're being transitioned to another IDR plan like Income-Based Repayment (IBR), the threshold drops to just 150% of the poverty level. That smaller deduction means more of your income is counted—and used to calculate your new, higher monthly payment.
Don't panic—there are still smart ways to reduce your payment.
💡 Tip #1: Use Older Proof of Income (If Legal)
You don’t have to use 2024 income if you haven’t filed your 2024 tax return yet. If your 2023 income was significantly lower, submit it manually with your application instead of using the IRS data pull.
💡 Tip #2: Apply While Between Jobs or with Lower Income
If you're currently unemployed or between jobs, that’s the ideal time to recertify. You could qualify for $0 payments for 12 months—totally legal under federal rules.
💡 Tip #3: Avoid Linking IRS Info Automatically
Avoid using the IRS Direct Data Exchange on studentaid.gov unless you’re sure you want your latest income used. Once it’s linked, your loan servicer may pull that data even if your current situation is different.
At LoanSense, we don’t just offer advice—we actually help you submit your application the right way, strategize on what income documentation to use, and help determine whether you should file taxes jointly or separately if you’re married.
We’ve helped hundreds of borrowers optimize their payments and save thousands over time—especially those pursuing Public Service Loan Forgiveness (PSLF) or planning for long-term forgiveness.
🎯 Ready to stop overpaying?
👉 Book a call now and use code LS20OFF for $20 off your consult.
📺 Watch more videos in our Borrower Education Library on YouTube. We break down SAVE, PSLF, Borrower Defense, and more.