Students are required to keep their servicer account up-to-date with their income 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, including the name of the employer, job title, and earned income, no later than five days after starting work. They must also confirm 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 against their filed income tax returns. This is to ensure that students are not over- or underpaying what they owe pursuant to their 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.