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Department of Education Revises Policy on Spousal Income for Student Loan Repayment

New guidance confirms spousal income will not count in payment calculations for married borrowers filing separately, with application processing set to resume by May 10.

A graduate of Columbia University's lauded School of International and Public Affairs (SIPA) gets a hug from a friend outside SIPA's commencement exercises at St. John the Divine cathedral May 17, 2004 in New York City.
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Overview

  • The Department of Education filed a corrected court declaration clarifying that spousal income will not be included in income-driven repayment (IDR) calculations for married borrowers filing separately.
  • Instead, spouses will only be counted in family size, which could lower monthly payments for some borrowers under IDR plans like IBR, PAYE, and ICR.
  • The IDR application processing, suspended since February due to a court injunction, is scheduled to resume by May 10, 2025, according to the Department of Education.
  • The American Federation of Teachers’ motion for a temporary restraining order was denied, but a status conference has been scheduled to oversee compliance with the resumption plan.
  • The SAVE plan, originally designed to reduce payments and accelerate forgiveness, remains blocked, but older regulatory frameworks for IDR plans are being reinstated.