What to Do If Your Student Loan Payment Amount is Wrong in 4 Steps

After several years of the COVID-19 forbearance payment pause, federal loan borrowers are back to making required student loan payments again. But the return has been messy and riddled with errors. 

Over 400,000 student loan borrowers had an incorrect monthly payment amount, according to The New York Times. Many of these borrowers are being put in administrative forbearance until the issue is resolved, according to the Department of Education. If you’re facing this problem, here’s what to do if your student loan payment amount is wrong.

1. Double-check the math

If you’ve logged into your account or received a billing statement and see a wrong payment amount, your first step is to double-check the math. There are a couple of ways to do that. 

Use a student loan calculator

Using a tool like a student loan calculator, check what your payment amount should be. Typically, you’ll need to provide your loan amount, the interest rate, family size and annual income. Providing this information can help you calculate your monthly payment. From there, compare it to what’s listed on your account and verify if your payment is correct or not. 

Calculate payments using the Loan Simulator

Another way to calculate your monthly student loan payments is through the Loan Simulator tool by the U.S. Department of Education. By adding your principal balance and interest rate, you can review your monthly payment amount and see what it should be. 

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2. Verify your tax filing status

If you’re wondering what to do if your student loan payment is wrong and you’re married, check your tax filing status. On income-driven repayment (IDR) plans, when you’re married and file jointly, your spousal income is considered in your payment calculation. 

When you file separately, your spouse’s income is excluded and only your individual income is considered. If your payment amount is wrong, it might be because you’re filing your taxes under the wrong status.

You might find out that you’ve filed jointly but meant to file separately. In that case, request a forbearance until it’s time to submit a new tax return. Once your tax return is processed with the correct filing status, talk to your loan servicer about recertifying your income to get an accurate student loan payment amount. 

3. Determine income changes

IDR plans, including the new income-driven repayment plan, SAVE, determine payments by your annual income and family size. If there’s been a change to your income, that can affect your payment size. 

When your income drops, submit the change to your servicer by recertifying your income and get a lower payment. If you make less now but your payment is still high, go to your account and review the numbers. Calculate your new payment using a student loan calculator or the Loan Simulator. 

As your income increases, you don’t need to recertify it right away. Instead, you can update it with your loan servicer by your recertification due date. For a while, the payment might look wrong. In this case, you get the advantage of keeping your lower monthly payment for as long as possible. After recertifying by your deadline, your new payment amount will kick in. 

4. Actions to take if your student loan payment amount is wrong

If you log into your account or get a billing statement with an incorrect monthly payment, it can be frustrating. Especially if it’s an amount that’s higher than you’re supposed to pay! If, after going through the aforementioned checklist, you still see that your student loan payments are wrong, here’s what to do.

Contact your loan servicer

Your student loan servicer is a company that’s contracted with the government to manage your student loan repayment. Your loan servicer helps you switch repayment plans and accepts your loan payment. 

If you’re not clear on who your loan servicer is, log in to your StudentAid.gov account. Go to the “My Loan Servicers” section to find which company is servicing your federal loans. 

Call or email your loan servicer and clearly state your issue. For example:

Dear [Loan Servicer], 

My name is [full name] and my student loan account number is  [XXXXX]. My current payment is listed as $X in my account and is incorrect. From my calculations, it should be $X. What are the steps to fix this issue and how quickly can it be resolved? 

Whether you call or email, you want to get straight to the point and keep your composure (even if you’re mad and frustrated inside). Document everything, including:

• The dates you called or emailed. 
• Any billing statements. 
• Your emails or notes about any conversations you’ve had with a representative. 
• Any follow-ups you’ve received. 
• When the issue is resolved. 

Keep your contact information updated and retain any documentation until the issue is fixed. 

Request forbearance

Married borrowers on IDR with an inaccurate payment amount can request a forbearance with their loan servicer. This can pause student loan payments for a period of time until you change your tax filing status. 

File taxes separately so that joint income isn’t used in the payment calculation for IDR. If your student loan payment was wrong due to joint income, your payment should be lower after filing separately. Then, you can recalculate your payment and make sure it looks correct using only your income. 

Recertify your lower income ASAP

Borrowers on IDR plans are required to recertify their income every year. If your income has gone down because of a job change, shorter work hours, or due to job loss, you’ll want to recalculate your payment right away. 

That way, your payment amount is based on your lower income, which should reduce your monthly student loan payment. Visit the income-driven repayment (IDR) plan request page on StudentAid.gov, and go to “Manage Your Income-Driven Repayment Plan” to log in to your account.  From there, you can recertify early to get a lower payment sooner, based on your new circumstances. 

Consider refinancing as a solution

If you’re frustrated with your loan servicer, unfortunately, you can’t request a different one. That option is only possible if you consolidate your loans.

If they’re not helping you with an incorrect student loan payment amount, despite asking for help, submit a complaint to the Consumer Financial Protection Bureau (CFPB). Then, you can consider student loan refinancing. 

Refinancing lets borrowers apply for a new loan with the purpose of paying off their existing loans. When refinancing, you might qualify for a lower interest rate if you have a strong credit score. This reduced rate can lower your payment amount.

You’ll no longer need to deal with your loan servicer — only the new refinancing company. This might help save you money, but it is only a good idea if you’re not working toward student loan forgiveness. 

A refinance pays off your federal student loan in full, so any repayment plans or forgiveness opportunities are no longer available to you. If you have private student loans, refinancing them can be smart as there’s less to lose. 

Get a plan 

Having the wrong payment amount on your student loans can be annoying and confusing. In taking the steps above, you can take action to resolve the issue. In the meantime, be proactive and check your student loan account regularly. Make sure you’re clear about any changes to your repayment plan and how recertification impacts your payment. 

If you’re feeling overwhelmed by your student debt, the Student Loan Planner team can offer support. Get a personalized plan for your situation that you can feel confident about.