Interim IBR Alternative Documentation of Income Form Available

A National Council of Higher Education Loan Programs workgroup has released an interim Income-Based Repayment Plan Alternative Documentation of Income form. The form is not a final, official U.S. Department of Education-approved form but rather an optional form provided to assist lenders and servicers until that final form is available.

The form is available from the Lender Forms page of USA Funds^®’ Web site.

The NCHELP Federal Family Education Loan Program IBR workgroup has made the interim Income-Based Repayment Plan Alternative Documentation of Income form available for immediate use. IBR became available July 1.

The workgroup notes that lenders may use the form as-is, or may modify it to accommodate their processes.

Additionally, Section 2 of the form includes information about the Internal Revenue Service’s being unable to provide verification of adjusted gross income, as some lenders will continue to use IRS Form 4506-T to collect a borrower’s AGI.

The NCHELP workgroup also recently released an interim Income-Based Repayment Plan Application, also available from the USA Funds Lender Forms page.

Department clarifies requirement
Addressing questions from the student loan community, the Department has provided clarification about the alternative income documentation requirement for IBR. The Department indicated that lenders and servicers may accept a copy of the borrower’s tax return form that includes a copied signature. An original signature is not required.