NewsCovering America

Actions

Divorced people will soon be able to de-consolidate previously co-held student loans

Posted at 11:18 PM, Sep 21, 2022
and last updated 2022-09-22 02:18:21-04

WASHINGTON, DC (KERO) — Thanks to a bill passed in the U.S. House of Representatives on Wednesday, divorced couples may be able to separate their consolidated student loan debt and possibly qualify for forgiveness.

The Senate approved the bill in June.

Until 2006, married couples were allowed to consolidate their federal student loan debt into a single loan, but that made them jointly responsible for the debt, even if they divorced.

Survivors of domestic violence, economic abuse, or borrowers who can no longer get in touch with their co-borrower will be able to submit an individual application.

The bill will now head to President Joe Biden’s desk for his signature. Biden has previously said his administration supports the legislation.