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Old 09-23-2022, 06:16 AM
 
Location: NJ
23,861 posts, read 33,523,515 times
Reputation: 30763

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Spread the news if you know of anyone who combined their loan with a spouse or a now ex-spouse. They should get their applications in ASAP before the mad rush. I'm surprised they also passed this too.

Once the paperwork is done, they can apply for student loan forgiveness.



Congress just made it possible for student-loan borrowers who combined their balances with a spouse to separate their debt and receive federal loan forgiveness


Quote:
Congress shuttered the spousal joint consolidation loan program in 2006, which allowed married couples to combine their student debt balances with the idea that a single payment, with one interest rate, would be a more affordable repayment option. But once that program ended, those borrowers were stuck with the combined balances because law prohibited them from being separated, effectively blocking them from consolidating their debt into federal direct loans and taking advantage of federal relief, like the Public Service Loan Forgiveness (PSLF) program and blanket loan forgiveness.

Over a decade later, those borrowers are finally seeing relief. On Wednesday, the House passed the Joint Consolidation Loan Separation Act of 2021, which allows those with spousal loans to separate their balances. Sponsored by Sen. Mark Warner and Rep. David Price, this legislation will ensure the borrowers no longer have to keep paying off debt with a former partner that was abusive and will ensure that the borrowers that are still together can each apply for federal loan forgiveness.

"They will be immediately able to apply for the severance of their loan,"
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