Students are required to keep their servicer account up-to-date with their salary and job status at all times. Even if a student is still active in the curriculum, they need to keep their account up-to-date.
Students must inform Lambda School of their employment status no later than five days after starting work in a qualified position paying at least the minimum monthly income required to make monthly payments under the agreement. Students must also must inform Lambda School of the name of their employer, their job title, and their earned income every three months, or as requested by Lambda School, thereafter.
Each year, there is a tax reconciliation process performed to verify the students' reported income. This is to ensure that students are not over- or underpaying what they owe per their financing agreement.
Students must submit to Lambda School and/or their servicer the following documentation evidencing their earned income:
- Before their first monthly payment and every time their earned income increases or decreases, a pay stub, a letter from their employer, independent-contractor agreement, or other evidence of their monthly income.
- By 30 April each year, a year-end pay stub, form W-2, form 1099, schedule K-1, or other official documentation showing their sources of earned income and the dates of their employment for the previous calendar year.
- If Lambda School requests it, a completed and signed IRS form 4506-T (or any successor form) designating Lambda School as the recipient of their tax return information for returns covering any months for which they are required to make a monthly payment, dated no earlier than 30 days before the date they provide it Lambda School.