A move that would've surged married student-loan borrowers' payments was a mistake, Trump's admin says
Source: Business Insider
A move that would've surged married student-loan borrowers' payments was a mistake, Trump's admin says
Ayelet Sheffey
Mon, April 21, 2025 at 1:23 PM EDT 2 min read
• The Education Department corrected a filing that changed calculations for married student borrowers.
• The filing had said spousal income would be used to compute payments, even if they filed separately.
• The department said the change was "erroneous" and the calculations would not change.
Married student-loan borrowers won't have to worry about changes that could increase their monthly payments after all.
After the American Federation of Teachers sued President Donald Trump's administration for taking down online access to income-driven-repayment applications, the Department of Education wrote in a legal filing that married student-loan borrowers who file separate tax returns would have their combined income counted to calculate monthly payments.
That would've surged some borrowers' payments because it would mean that monthly payments on an income-driven repayment plan would be based on a higher combined income.
The Department of Education corrected that in a legal filing last week, saying the change to married borrowers' payment calculations "was erroneous." Instead, acting Undersecretary James Bergeron said that married borrowers filing separately would have the spouse counted in the family size to calculate monthly payments.
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Read more: https://finance.yahoo.com/news/move-wouldve-surged-married-student-172358335.html
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