ISSUES
The Student Loan Rule Change That Hits Your Repayment in October
A federal rule quietly rewrites how income-driven repayment is calculated — some payments drop, others jump.
Starting October, income-driven student loan payments will be recalculated against a new discretionary-income formula: borrowers earning under $48k mostly see payments fall, while dual-income households above $95k could see increases up to $110/month.
- New formula raises the income exemption floor — lowest earners can hit $0/month
- Married dual-income borrowers lose a filing loophole worth ~$80-110/month
- Recertification is automatic this cycle — but only if your income data is current
- Missing the recertification window locks last year's (higher) calculation for 12 months
WHY THIS MATTERSThis is a calendar problem: check your servicer account before October 1 and make sure your income data is current. Ten minutes now decides whether your payment drops or spikes for a full year.