Education and IRS Team Up for Student Loan Data Sharing
Published Date: 12/23/2025
Notice
Summary
The Department of Education and the IRS are teaming up again to share info that helps decide who qualifies for student loan repayment plans and federal financial aid like Pell Grants. This matching program kicks off around January 30, 2026, and runs for 18 months, with a chance to extend. It’s all about making sure aid and repayments are fair and accurate, with no extra cost to you!
Analyzed Economic Effects
3 provisions identified: 1 benefits, 1 costs, 1 mixed.
IRS–ED Tax Data Used for FAFSA and IDR
The IRS will share Federal Tax Information (FTI) with the Department of Education, with each individual’s approval, to determine eligibility for FAFSA-based federal student aid (Pell Grants, Federal Work-Study, FSEOG, Direct Loans) and to determine repayment obligations under Income-Driven Repayment (IDR) plans. The matching program is estimated to run from January 30, 2026 through July 29, 2027 and may be extended up to 12 additional months; the FTI may also be used to reduce improper payments, for OIG oversight (not for criminal investigations), and for cost analyses.
Specific Tax Data Elements That Will Be Shared
If you approve sharing, the IRS will provide specific tax data to ED including SSN/TIN, tax year, last name, filing status code, adjusted gross income (AGI), exemptions, dependents, wages and other earned income, total tax paid, education credits, untaxed IRA contributions/distributions, tax-exempt interest, untaxed pensions/annuities, Schedule C net profit/loss, and indicators of certain schedules filed. These exact data elements will be used for FAFSA and IDR determinations and related oversight and analysis.
Individual Consent Required Before IRS Data Sharing
The IRS will disclose FTI to the Department of Education only after an individual provides written approval/consent to ED for use of their tax information in determining FAFSA eligibility or IDR repayment obligations. This consent requirement is a condition for the IRS to disclose the tax records under the matching program.
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