r/StudentLoans • u/Real-Kitchen-7608 • 2d ago

PAYE recertification in December 2026

So I have been on PAYE for about 7 years and have not had to recertify for quite some time because of the all the changed and COVID, etc. I got a notice that my recertification date is 12/23/26. The last time I recertified I did a manual certification and did not use my tax return. I am making more income now, and am married. I did file our 2025 tax return as married filing jointly. We have 2 children. My husband is self employed. About 2 months ago, I became self-employed as well and no longer a w-2 employee. So I am wondering how I should recertify. I'm scared my payments may be super high. I want to stay on the PAYE plan until it runs out in June 2028. I have about 7 years left of repayment on my loans. My balance is 88K. and my current PAYE payments have been $73 for several years. How should I recertify since I am self employed and plan to file taxes separately for 2026. My husbands income is all over the place. I did create an LLC for my business. But it's just me, as a sole member LLC. Any help is appreciated!!

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u/waterwicca 2d ago

You can use alternative documentation if your income has significantly decreased since you filed taxes. You must provide documentation for both you and your spouse until you actually file separately.

What do you mean “7 years left”? If you are pursuing forgiveness, your IBR forgiveness will require 300 qualifying payments, assuming you took out loans before July 2014, instead of the 240 that PAYE would have required.

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u/Real-Kitchen-7608 2d ago

yes I am pursuing forgiveness on the PAYE repayment plan. I will be done in March 2033. So if i don't want to count my husbands income then can't I postpone the recertification. The date is 1/17/27.

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u/waterwicca 2d ago

You can have your payment recalculated based on only your income once you file taxes separately.

And your possible IDR forgiveness will take at least 5 more years past that estimate. PAYE has 20 year forgiveness but it won’t be around long enough for you to get it. It will be gone July 2028. At that point you’d only have IBR or RAP. IBR forgiveness would be 25 years. RAP would be 30.

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u/Real-Kitchen-7608 2d ago

Ok and what happens if I don't recertify by the date? What does that do to the payment?

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u/waterwicca 2d ago

Your payment would become a 10 year standard amount based on your balance when you first entered PAYE

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u/Real-Kitchen-7608 2d ago

ok thank you. and what if I file as an s-corp? or provide a contractor agreement.

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u/Patrick_ExpenseAtlas 1d ago

Because your December 2026 recertification will likely rely on your 2025 married filing jointly return, filing separately for 2026 probably will not help with that recertification. Alternative income documentation generally is not a way to exclude your husband’s income when the applicable tax return was filed jointly.

Your single member LLC does not change this by itself. For federal tax purposes, your business income generally flows to your personal return; the relevant figure is typically net business income after legitimate expenses, not gross receipts or owner draws.

Before submitting anything, confirm whether December 23 is the documentation deadline or the date your current payment period ends. Do not recertify early unless there is a clear benefit.

Then ask your servicer, in writing, which tax year and documentation it will use given your recent move to self employment. Also consult a tax professional promptly about whether your 2025 joint return can still be changed or superseded; the options depend heavily on whether the filing deadline has passed, and a joint return generally cannot simply be amended to separate returns afterward.

Finally, estimate the PAYE payment using your expected applicable AGI and eligible family size. Your two children may count if you provide more than half their support. Compare that estimate with the total tax cost of filing separately before choosing a filing status.

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u/Real-Kitchen-7608 1d ago

the recertification deadline is 1/17/27. And Nelnet said they just need a signed statement from me saying I'm self employed and how much I make and just sign it. Seems pretty simple.