You are getting married and moving on to the next chapter of your life. This is good news, but you might want to first discuss your student loans with your future spouse. This is because getting married can affect your student loans payments.
What is Revised Pay AS You Earn (REPAYE)?
REPAYE is one of the 4 income-driven repayment plans available to federal student loan borrowers. On an income-driven repayment plan, your monthly payments are based on a percentage of your discretionary income and are generally more affordable than the Standard 10-year plan.
On REPAYE, your monthly payment will generally be capped at 10% of your discretionary income. Then, after 20 or 25 years (depending on what type of loan you have), the remaining balance will be forgiven.
How are payments on REPAYE Calculated?
Payments on REPAYE are based on 10% of your discretionary income. Discretionary income, for REPAYE, is the difference between your annual income and 150% percent of the poverty guideline for your family size and location.
Does the Income of the Spouse Count in REPAYE?
Whether or not your spouse's income will be included in your monthly repayment calculation depends on two factors:
- Your repayment plan, and
- Your tax filing status
Married borrowers on ICR, PAYE, or IBR may file their taxes separately if they'd like to exclude their spouse's income from their monthly payment calculation. However, married borrowers on REPAYE can not exclude their spouse's income from their monthly payment calculation, regardless of their tax filing status. If both spouses have federal student loans each spouse's monthly payment will be based on their portion of the total debt. If only one spouse has student loan debt the other spouse's income will still be used to determine monthly payments under REPAYE. Depending on your spouse's income, your payments under REPAYE may be significantly higher than they would be on an alternative repayment plan.
Under REPAYE, your spouse's income will always count towards calculating your monthly payments, regardless of filing status.
Before getting married, it's important to discuss how it will impact your student loan payments and to weigh your options as a couple.
Use Chipper for Lower Payments
Chipper can help you find a student loan repayment plan that actually fits into your budget. You simply fill out your information and link your student loan account for us to generate your options in seconds. We help the average student loan borrower save over $300 a month off their student loan monthly payment. Lowering your monthly payment plan can game changing for your personal finance and can be done in minutes! Sign up for Chipper today to get on track with your student loans.
Use Chipper for The Best Path to Forgiveness
Finding your path to student loan forgiveness is easier than ever before. Chipper helps members find better Income-Driven Repayment (IDR) plans every day. Once enrolled in an eligible repayment plan, we can help you explore your forgiveness options and understand your path towards forgiveness. Sign up with Chipper today and get on track with your student loans.
Use Chipper for Round-Ups
Paying off your student loans doesn’t have to be a long and painful journey. Round-Ups are a way to directly pay off your loans with your everyday spending! By tracking your linked spending account(s), we will calculate the rounded up amount from each transaction in a week (IE spending $4.28 would add $0.72 to the weekly amount). We then initiate a payment towards your student loan for the weekly amount. Get chipping away on your student loans with Chipper today.
Use Chipper for Public Service Loan Forgiveness (PSLF)
The Public Service Loan Forgiveness (PSLF) program was created to provide relief to borrowers aiding the public sector. Unfortunately, 30% of applicants are denied due to incorrect paperwork. We can help! Chipper was created to solve this issue by assisting borrowers in understanding their options as well as allowing forgiveness eligible users enroll into the best forgiveness program available. Sign up for Chipper today to see your student loan forgiveness options and get the forgiveness you deserve.
Use Chipper for Teacher Loan Forgiveness (TLF)
The Teacher Loan Forgiveness (TLF) program was created to enable teachers working in Title 1 schools to receive student loan forgiveness of up to $17,500 (depending on their teaching subject). Chipper has helped teachers from all over the country qualify for TLF program and can help you get the forgiveness you deserve today. Find out if you qualify for forgiveness in minutes with our employer search tool.