Income-driven repayment (IDR): Are you a married student loan borrower for us? Here’s how the new Trump administration repayment rules will affect you
The development stems from a federal court ban on former President Joe Biden from saving valuable education (save) programs. This is designed to provide borrowers with lower monthly payments and faster loan pardons.
As a result, media reports said that the Ministry of Education is returning to earlier regulations. They cite orders from the Eighth Circuit Court of Appeals as the basis for the change.
Spouse income is now part of the equation
According to the Business Insider Report, currently, borrowers who have married borrowers pay taxes separately can calculate their IDR payments based solely on their own income. This option reportedly helps avoid higher monthly obligations arising from the combined household income.
However, Acting Deputy Secretary James Bergeron reportedly said in a legal statement that such flexibility will no longer apply. Bergeron said that under the revised plan, a married borrower who filed a separate income tax return or was separated from his spouse would calculate spouse income when determining the amount of payment. According to the BI report, this will likely lead to a significant increase in monthly dues for many households.
Also Read: Nintendo Switch 2: Is this what senior successor fans have been waiting for? Find out the answer here
Legal struggle for borrower protection
The American Federation of Teachers (AFT) sued in March after the education department briefly took the IDR application for a brief application. Although the apps have been reactivated, they are not processed.
Meanwhile, according to reports, a hearing held in the main court on the Parliamentary motion for the temporary restraining order was held on April 17.
The stern argued that the department’s actions violated the law and violated federal law. In particular, US Code §1098E requires borrowers to submit taxes separately to determine payments strictly based on their own income and student debt.
Education Law experts refer to the “should” and “should” stipulated in the statute. This makes the calculation method a congressional task, not a discretion.
Ambiguous rules that increase stress
Critics such as financial planners and borrower activists reportedly warned that the shift could economically undermine borrowers, who have sacrificed the disadvantage of taxes by separately proposing to reduce loan installments. This sudden turnaround could result in double the financial costs – higher taxes and higher loan installments.
The report added that although the department has promised to restart the IDR application processing by May 10, how the transition will be reconciled with current laws.
Also Read: Paleontology Breakthrough: Evidence Shows Three-toed Ankylosaurs Roaming 100 Million Years ago
FAQ
Q: Why do married student loan borrowers pay more from May 2025?
A: Because the court ruled to block the rescue program, the U.S. Department of Education plans to include spouse income in the monthly payment calculations for income-driven repayment programs, even for borrowers who pay taxes separately.
Q: Is this change consistent with federal law?
A: Legal experts believe this may contradict US statute §1098E, which stipulates that the borrower’s income can only be used if the borrower’s income is taxed separately. This potential conflict could lead to further legal action.
Disclaimer: This content is written by a third party. The views expressed here are the views of the respective authors/entities and do not represent the views of the Economic Times (ET). ET does not warrant, warrant, or endorse any of its contents, nor is it responsible for them in any way. Please take all necessary steps to make sure that any information and content provided is correct, updated and verified. ET hereby disclaims any warranties, express or implied, relating to the Report and any Content.
