Michael,

Thank you for your reply.

Let me contact the FSA office to determine what the amount of the payment is with the current payment startup. I will try to confirm with them the policy and will get back in touch for the consultation.

Regards,
Pat

When you both have federal student loans, the benefit to filing seperately drops, but there is still a slight benefit. This article breaks down the details on calculating IDR payments for married couples who both have student laons.

The short answer is that if you file married filing jointly, the Department of Education determines the combined payment that the two of you must pay, and then that payment is split proportionally according to your loan balances.

If you’d like, we can schedule a student loan consultation to discuss whether or not it makes sense to file seperately as well as some strategies to keep your monthly payments as low as possible.

Michael,

Yes to your question regarding husband and wife having separate Parent Plus loans. Husband’s loans are for children 1 and 2. Wife’s loan for child 3.

Thank you again for your time and replies.
Regards
Pat

Thats a tricky one Pat. Before I answer, I want certain I understand exactly what you are asking.

Are you asking about households where the husband and wife both have Parent PLUS loans in their own name? For example, husband has Parent PLUS loans for child one and two, and wife has Parent PLUS loans for child 3 and 4.

Under a jointly filed tax return, the AGI is used to determine the monthly payment amount. If the parent plus loans are separate loans under husband and wife, the same AGI is used under each spouse. Or is the AGI split based upon the taxable income of each spouse to determine payment amount for each spouse’s different loans?

If not, I understand the only option is filing separate and the related tax consequences.

Thank you for your time and reply.

It all comes down to the AGI on your most recent tax return. If you earn enough regular income, your social security income may also be taxable, which would increase your AGI and your IDR payment.

The lower your AGI, the lower your IDR payment will be.

I delayed collecting by social security till age 70. I’m still working so I can get fully recovered from the long economic impact of the pandemic and what was before that with regards to accumulated high interest debt. But now I have both regular taxable income and social security. How does this impact my IDR?

Hi Bill,

Thanks for taking the time to leave such kind words. I’m glad to hear that it worked out so well for you!

Hi Don,

It sounds like you have Parent PLUS Loans. If the loans are in your name alone, you are legally obligated to repay the debt. I’d encourage you to check out the steps required to enroll in an IDR plan for your Parent PLUS loans. Sadly, it isn’t as simple as just signing up for an IDR plan.

As for your marriage, your new wife’s income could impact your monthly payments. If you file taxes jointly, the monthly payment is based on your combined income. If you file separately, the monthly payment is based upon your income alone. Filing separately usually lowers your student loan bill, but it can increase your tax bill. As a result there is a lot to consider when you decide whether to file jointly or seperately.