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Need some help navigating the recent news that married couples student loan rates are going to increase [US] (www.forbes.com)

submitted 1 month ago by Derpenheim@lemmy.zip to c/personalfinance@lemmy.ml

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Put aside what you think about this news, this is likely going to happen as the admin doesn't care about legal challenges, they just implement policies.

I own my home, fixed rate mortgage, and I own both of our cars with no remaining payments. From my understanding, should I cease payments on the loan (they are privately owned debts) I can be sued for the debt and then wages garnished. My credit score will also suffer from a default, but again I own everything I have or it's on a fixed rate.

What does this process look like, and what are the tangible consequences for me?

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[–] limelight79@lemm.ee 5 points 1 month ago

There is an update with a clarification that says income won't be considered:

Update, April 16, 2025: On April 15, the Department of Education filed an amended declaration, clarifying that for the ICR, IBR, and PAYE plans, “married borrowers filing separate income tax returns or separated from their spouses will have the spouse counted in the family size for the purposes of calculating monthly payment amount under IDR plans.” The declaration removes the reference to spousal income being factored in for married borrowers who file separate tax returns.