Student-loan borrowers who combined their balances with a spouse just got new information on how they can go about separating those loans.which allowed borrowers in the spousal joint consolidation loan program to separate their combined balances. When the program was created, couples enrolled under the idea that it would make monthly student-loan payments more affordable with just a single interest rate.
That meant that even if the couple got divorced, or a borrower was in an abusive relationship, they would still be stuck paying their loans with their partner at the time. The law, led by Sen. Mark Warner and Rep. David Price, made sure that borrowers would not be left in that situation. Along with being able to pay the loans independently in the case of a divorce, separation of balances
who seek to enroll in the Public Service Loan Forgiveness program, which requires the separation of the loans into the direct loan program to qualify for relief.detailing the process for borrowers to go about separating their balances. Here's what you need to know.There are two ways that borrowers will be able to apply for that process:This application option would require each coborrower to request the separation of their loans into new direct loans by submitting an application.
Borrowers who are in the Federal Family Education Loan Program with joint consolidation loans who take the necessary steps to separate their loans will receive the account adjustments, even if the separation application does not become available until after the adjustments occur. If that's the case, the benefits will be applied for those borrowers retroactively.Sign up for notifications from Insider! Stay up to date with what you want to know.