Written By Melanie Lockert
Updated on May 27, 2026
Managing your finances in a marriage takes work. Add student loans to the mix and there’s a whole new level of complexity and considerations, especially if you want lower monthly payments.
To reduce payments, federal student loan borrowers can enroll in an income-driven repayment (IDR) plan. However, your tax filing status on your federal income tax return can affect how much you pay. Read on to learn which IDR plans require spousal income, the latest changes and what to consider as a married borrower choosing IDR.
Understanding income-driven repayment plans
Income-driven repayment plans are designed to make payments more affordable for those with eligible federal student loans. Though you might hear the phrase “income-based plans” thrown around, many people actually mean “income-driven repayment plans.”
Income-Based Repayment (IBR) is a specific repayment plan within the broader IDR category. Depending on eligibility and current program rules, borrowers may have access to one or more of the following IDR plans:
- Income-Based Repayment (IBR)
- Pay As You Earn (PAYE)
- Income-Contingent Repayment (ICR) plan
IDR plans generally calculate your student loan payment based on 10% to 20% of your discretionary income depending on the plan and your family size. Repayment terms are typically 20 or 25 years, and borrowers may qualify for student loan forgiveness on any remaining balance after meeting repayment requirements.
Note that federal borrowers should soon have access to the new Repayment Assistance Plan (RAP), which uses a different payment formula and comes with 30-year forgiveness.
Regardless of which IDR plan you choose, you must provide income information and go through the recertification process every year.
Related: Should You Switch Student Loan Plans After the OBBBA?
The role of spousal income
Being married means sharing a life together — and that means combining the various aspects of your lives. If you’re married, you and your spouse are considered as sort of a unit instead of an individual, especially to the IRS.
As a result, spousal income might be considered when calculating your IDR monthly payment amount. Having an inflated joint income can increase your monthly payments.
Whether an income-driven repayment plan includes your spousal income, depends on your tax filing status. Typically, spousal income is considered when your tax filing status is Married Filing Jointly (MFJ). The joint income can affect your eligibility for PAYE and IBR and your payment amount.
If your tax filing status is Married Filing Separately (MFS), then your spouse’s income won’t be included. Additionally, if you’ve filed jointly in the past, but are currently separated or divorced from your spouse, only your individual income is used. This is also the case if you’re unable to reasonably access your spouse’s income.
Which IDR plans require a spouse’s income?
Ultimately, all current IDR plans use your spousal income, if you file taxes as Married Filing Jointly. Here’s a breakdown of how each plan treats married borrowers.
| Repayment plan | Percentage of income | Repayment term | Married filing jointly | Married filing separately |
|---|---|---|---|---|
| IBR plan | 10% to 15% | 20 or 25 years | Joint income | Individual income |
| PAYE plan | 10% | 20 years | Joint income | Individual income |
| ICR plan | 20% | 25 years | Joint income | Individual income |
| RAP plan* | 1% to 10% of AGI (tiered; $10 minimum) | 30 years | Joint income | Individual income |
*Expected to be available July 2026
Upcoming changes to IDR plans
It can feel like IDR plans are constantly changing depending on which administration is in charge. Plans like Revised Pay As You Earn (REPAYE) and the short-lived Saving on a Valuable Education (SAVE) plan came with different rules and are no longer available — and even more changes are on the horizon.
Under current law, PAYE and ICR are scheduled to sunset, while the new RAP plan is expected to become available beginning July 206 with a different payment formula than its predecessors. At the same time, new borrowers will face different repayment and borrowing rules, adding another layer of complexity when choosing a strategy. For example, new borrowers who take out a loan after July 1, 2026 will be limited to RAP as the only income-based repayment option.
One thing that remains consistent across current IDR plans: borrowers who file taxes jointly have payments calculated using total household income, while those who file separately generally have payments based on individual income. That distinction can significantly affect monthly payment amounts and repayment strategy.
Strategies for borrowers
If you’re married and want to enroll in an income-driven repayment plan, talk to your loan servicer. You must fill out an Income-Driven Repayment Plan Request on StudentAid.gov.
Here are some strategies and tips to keep in mind.
Tips for borrowers considering MFS vs. MFJ
When considering your tax filing status ask yourself the following questions:
- How much student debt do you have?
- How does each plan affect your IDR payment? Does it go up or down, compared to the others?
- Which IDR repayment options provide the lowest monthly payment?
- How does the plan affect your tax benefits?
- Does your spouse have federal student debt? If they do and you file a joint return, this is taken into consideration in your payment calculation.
- Are you pursuing Public Service Loan Forgiveness (PSLF) to discharge your loan balance after 10 years of payments? If so, filing separately might be the best path to maximize tax-free loan forgiveness.
How to navigate repayment plans with high spousal incomes
If your spouse has a high income, that can drive up your repayment costs if you file your taxes jointly. This is especially the case if they don’t have student loan debt. Use our IDR payment calculator to see how filing jointly, versus separately, affects your payments.
Let’s say you have a family size of two and you earn $50,000 with $80,000 in student loans at 6%. Your spouse earns $100,000 and has no student debt. If you file your taxes jointly, your payment would be $888 per month on New IBR. Comparatively, filing separately results in a New IBR monthly payment of $217.
If you decide to file separately for a lower IDR payment, make sure your net tax benefit exceeds the tax advantages you might be giving up in the process.
Related: Married Filing Separate Tax Calculator for Student Loan Borrowers
Calculating spousal income in community property states
If you live in one of the nine community property states, your spousal income is calculated a bit differently. Even if you file a separate return, you’re still obligated to report 50% of your spouse’s income and community property assets, according to TurboTax.
This can present a hurdle when trying to keep payments low. If you file separately but live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington or Wisconsin, reach out to your loan servicer. Ask if you can provide alternate documentation so that only your individual income is included.
Next steps
Married borrowers who want an IDR plan must do a little extra work to learn the most affordable, smart and strategic approach to paying student loans and filing taxes. Filing tax returns separately could help keep loan payments low, but might reduce other tax benefits leading to a greater tax liability.
To ensure you’re making the most informed decision for your tax situation, talk to a tax professional. For a customized repayment plan, one of our Student Loan Planner® Advisors can offer advice that gets you to your unique goals. Book a consult today.
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