Married Student Loan Borrowers Can Breathe Easier Amid SAVE Plan Confusion
Hey everyone, I want to talk about something that's causing a lot of confusion—and honestly, a bit of panic—among married student loan borrowers: the recent updates around the SAVE Plan and income-driven repayment options. Let’s break it down together, because this affects a lot of people who are trying to do the right thing with their student loans.
So, earlier this month, news broke that the Trump administration, via the Department of Education, was making changes that could seriously impact how monthly payments are calculated for married borrowers. The big concern was that even if a married couple filed taxes separately—which normally means the borrower’s payment is based only on their own income—their spouse's income might still be counted. That would mean higher monthly payments for a lot of people who had been relying on the lower individual-income calculations. And understandably, that sparked a lot of anxiety.
This whole mess started because of the ongoing legal battle over the SAVE Plan, which was President Biden’s approach to helping borrowers get lower monthly payments and faster paths to forgiveness. But a federal court blocked that plan, and the fallout has touched almost every corner of the income-driven repayment system.
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Initially, a sworn court statement from the Education Department actually confirmed that spousal income would be counted even for borrowers filing separately. That was a huge red flag. Not only did it feel like a step backward, but it also seemed to contradict federal law. The law clearly says that for those who file separately, spousal income should not be included in the repayment calculation.
Thankfully, just a few days later, the Department of Education corrected that statement. In a new court filing, they clarified that spousal income won’t be used in those cases. Instead, they said that the spouse will simply be counted as part of the borrower’s family size—which actually lowers monthly payments in many cases. So instead of worrying about sudden payment increases, some borrowers might even see their monthly bills go down.
It’s a bit of a rollercoaster, honestly. The Department of Education is still working to get IDR plan applications—like ICR, IBR, and PAYE—back online after the SAVE Plan was blocked. They’ve promised that applications should be processed again by mid-May, so borrowers can finally start moving forward.
The takeaway here is: don’t panic. If you’re a married borrower and you file taxes separately, the law is still on your side. Spousal income will not be counted in your payment calculation, despite all the back-and-forth.
It’s just another reminder of how complex and fragile the student loan system is right now. But at least on this one, we’ve got some clarity—and a little relief.
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