Hello all,

I have a question about a spousal consolidation loans and income-based repayment (IBR). My husband and I consolidated our loans jointly in 2003, when we were allowed. My husband and I owe over $150,000 in direct spousal consolidated loans and about $130,000 in direct unsubsidized spousal consolidated loans, both at a 4% interest rate.

We did defer for many years when incomes were lower but starting paying again two years ago. My name is the primary on the loan and my credit report shows the loans, however, my husband’s credit reports show a zero balance for the loans. My husband is listed as the co-maker of the loans. However, each year my husband receives mail indicating he doesn’t qualify for the IBR or Public Service Loan Forgiveness (PSLF) because he does not have any loans (as they are under my name).

We finally began to repay student loans about two years ago and both qualify for the PSLF (we believe he does even though the letters say he doesn’t because he doesn’t have any loans) based on our different qualified employers (State and Federal government). We have completed documentation noting this and continue to do so annually.

Over the past two years we were advised by Fedloans to file our income taxes separately with the Married Filing Separately status, for the lowest student loan payment, which we have done. In 2014, my payment was around 800.00 dollars a month and the year before was similar. Both years this was our only payment and was based solely on my income as the combined loan holder even though I sent in separate tax returns for my husband even though we both used the married filing separate status. Last year I paid $8,436 in student loan interest.

This year when I sent documentation into Fedloans they stated they were raising our payment to over $1,900 a month, despite very similar income from tax returns from the past two years. When I inquired, I was told they are counting both incomes even though in the past two years they only counted mine as the loan holder. I was told that they erred the last two years and both incomes should have been counted.

Is this accurate? As I previously stated, we were originally told that only my income was counted for IBR payment since all the loans were consolidated under my name when allowed back in 2003. I am having a difficult time researching this to be honest. Fedloan will talk to me, however, they will not provide reference to why the change is taking place now or reference a policy or law for their reasoning or the change. I have been doing research myself but have not found anything specifically on point. I would also be interested in speaking with an attorney with expertise in this area if any can be recommended. I figure it is best to leave no stone unturned and appreciate any advice or recommendations.

Thanks,
MM