Student Loan Update: Married Borrowers' Payments May Rise Under Trump Plan

Source: Newsweek

Published Apr 12, 2025 at 2:32 PM EDT | Updated Apr 12, 2025 at 6:57 PM EDT


Student loan payments could rise for some married borrowers as early as next month, after the Trump administration indicated in a recent court filing that it may revert to earlier rules requiring spousal income to be counted in income-driven repayment (IDR) plans. Newsweek has reached out to the Department of Education's (ED) press team for comment via email on Saturday.

Why It Matters

Currently, married borrowers who file taxes separately can have their IDR plans based solely on their own income. Those who file jointly have their payments calculated using combined household income, which is often higher. In a recent court filing, the Trump administration acknowledged that a 2023 IDR rule, which allowed some borrowers to exclude spousal income, has been blocked by a federal appeals court. As a result, the ED is expected to revert to prior standards that include spousal income when calculating monthly payments. This plan would likely result in higher payments for married individuals currently filing taxes separately.

What To Know

In an April 8 filing in American Federation of Teachers v. U.S. Department of Education, et al., a case challenging the department's suspension of IDR plans, the government argued that "the Department fully intends to continue offering income-driven repayment plans on terms authorized by Congress and permitted by the courts."

The ED noted that certain limitations are expected as a result of a forthcoming injunction from a federal district court, from the direction of the Eighth Circuit Court of Appeals to block the 2023 IDR rule earlier this year. The filing notes that the 2023 IDR rule "amended the definition of 'family size' used for all IDR plans so as to exclude spouses when a borrower is married and files a separate tax return."

Read more: https://www.newsweek.com/student-loan-update-married-borrowers-payments-may-rise-under-trump-plan-2059028