Transcript Federal Family Education Loan Program (FFEL)

Income-Based
Repayment (IBR) Plan
Application Guide
April 1, 2013
The IBR Plan application form may be found at
http://www.kheslc.com/pdfs/forms/IBRapp.pdf
IBR Application Form
• Section 1 – All borrower information MUST be completed
(except for e-mail address).
Please enter or correct the following information:
SSN |__|__|__|-|__|__|-|__|__|__|__|
Name
___________________________________________________________________________________
Address
___________________________________________________________________________________
City, State, Zip Code__________________________________________________________________
Telephone – Primary (__)______________________________________________________________
Telephone – Alternate (__)_____________________________________________________________
E-Mail Address (Optional)______________________________________________________________
2
Repayment Plan Request
• Section 2 – “Pay As You Earn” and “ICR” are not
FFELP choices, you can only pick “IBR”.
• Check item (a) T I am requesting a repayment plan..
• Choose and check either item (b) or (c).
(b) T
is for IBR renewal/recertification/initial
qualification
(c) o
is for a mid-year recalculation
3
Eligible Loans with Another Lender?
• Section 2 – Question 2
2. T Check the box if you have eligible
loans with another lender.
–
This would include your spouse’s loans if
you are jointly submitting this request.
–
You must submit a separate request to
each lender that holds your loans.
4
Section 3: Spousal Information
Please enter the following information:
Spouse’s SSN |_|_|_|-|_|_|-|_|_|_|_|
Spouse’s Name____________________________________
Spouse’s Date of Birth |_|_|-|_|_|-|_|_|
Section 3
•
Complete this section if:
•
1) You file a joint federal income tax form
•
2) You have a joint Consolidation loan with your
spouse
•
3) Your spouse has qualifying loans
If you complete section 3, your spouse is required to sign the form.
5
Married borrowers
• You must complete the spousal
information in Section 3 if you:
– File a joint federal income tax
return with your spouse and your
spouse has loans that are eligible
for repayment under the IBR plan
(refer to Section 9), or
– You and your spouse are joint
borrowers of a Federal
Consolidation Loan that you want to
repay under the IBR plan.
6
Married borrowers
•Section 3 – If you file a joint
federal income tax return with
your spouse, your loan holder(s)
will base your eligibility
determination and monthly
payment amount on your
combined income regardless of
whether your spouse has eligible
federal loans.
•If your spouse does not have
eligible student loans, you do not
need to complete this section.
7
Section 4: Family Size and Income
7. |_|_| Enter your family size.
– Provide Family Size
• This includes all family members,
including children expected in the
next 12 months. All dependents
must get more than half their
support from you and your
spouse.
– Leaving question 7 blank.
• Leaving this question blank
requires us to use a family size of
one.
8
Section 4: Continued
• 8. Did you file a federal
income return…
o Yes – Continue to Item 9.
o No – Skip to Section 5.
Item 9 – Is your income now significantly
different than what you reported to the IRS?
o Yes – Continue to Section 5.
o No – Provide your most recently filed
federal tax form and skip to Section 6.
9
Section 5: Alternative Documentation
of Income
• Complete this section only if:
– You cannot provide a tax
form.
– Your income has significantly
changed from last year’s tax
info.
– You do not file a federal tax
form.
– Your current income is better
represented by something
other than last year’s tax
return.
10
If you do not have income…
10. Do you have taxable income?
o Yes – Provide documentation as described.
o No – By signing form, you certify you have no
income and are not required to file federal tax return.
11. If you completed section 3, does your spouse have
taxable income?
o Yes – Provide documentation of your spouse’s
income as described.
o No – By signing form, your spouse is certifying
that he/she has no taxable income or is not required to
file federal tax return.
11
Federal Tax Forms
• We need pages 1-2 of your
federal tax form.
• You must provide the most
recent year’s forms.
• We cannot use state tax
returns.
• We do not need the Alternative
Documentation of Income if
you submit tax forms!
12
Your Annual Taxable Income
• Income is defined as:
• income from employment
• unemployment income
• dividend income
• interest income
• tips
• alimony
• Do not include:
• Supplemental Security Insurance
• child support
• public assistance
13
Section 6:
Signing the IBR Request
• You must sign and date the form.
Be sure to date the form with the
current date! We will return
unsigned or incorrectly dated
forms!
• Your spouse must also sign and
date the form if you have a joint tax
return and your spouse’s
educational loans are part of the
IBR request.
14
Supporting Income Documentation
• Provide two recent, consecutive pay stubs.
• Your W2 form is an acceptable form of
income documentation.
• Make sure you provide the pay period
length (weekly, biweekly, etc).
• Provide the approximate start or end date
to the job.
• Do not cross out or highlight info.
Income documentation is something other than your federal tax form. This
must establish your current income through pay stubs or employer furnished
documentation of annual income.
Bottom Line – We must have enough info to calculate
your Federal Adjusted Gross Income.
15
For further assistance…
• Please contact a loan
servicing specialist at
1-800-693-8220
Monday through Friday,
9 am to 5:30 pm
Eastern time.
• You may also visit our
website at
www.kheslc.com. Once
signed in with your
Account Login, you may
e-mail a loan servicing
specialist.
16