I am intending to pursue student loan forgiveness at the end of my 20 year period and am currently enrolled in the PAYE plan. My AGI on my income taxes for the past few years while living abroad was $0 and my repayments were calculated at $0 by my student loan servicer. I am about to doing part time work in the US and, since this income will be US-taxable, this will increase my AGI. Then, later this year, I will be switching to full time employment back in the US.

I have asked my student loan servicer some direct questions about whether and when, in order to make sure that I remain eligible for forgiveness down the road, I need to request a recalculation of my monthly payments. Their responses appear to be form letters that do not directly address the question asked. The internet has been equally unhelpful.

I am obviously not asking for legal advice, but hoping someone has experience with this or a similar situation and can tell me what they did:

  1. Do I need to file a request for recalculation when doing the part time work if I'm only drawing a nominal additional amount?
  2. At what point do I need to file a request for recalculation?
  3. If most of my income is not US-taxable and, therefore, not factored into my AGI, do I include documentation of this income?
  4. Since the work is part time at first, how do I account for my income and what do I report?
  5. After returning to the US my taxable income for the year 2019 will be substantially less than the income that I'm earning. Obviously I would like to pay the monthly amount calculated based on my AGI. Do I request another recalculation after my taxes are completed?
  • 4
    In what country were these student loans originally run up? Oh, what am I saying, of course it's the US, who else has worrisome student loans? Commented Apr 16, 2019 at 20:11
  • 1
    lol on that one @Harper
    – Fattie
    Commented Apr 17, 2019 at 10:38
  • Yep, @Harper they're in the US. Federal loans. Commented Apr 17, 2019 at 13:16


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