@ljb322 - Great question. In some cases, married couples can result in lower student loan payments if the student loans are repaid under the "income-driven repayment (IDR) plans. By filing separately, a borrower's monthly payment under an IDR plan is based on their own discretionary income. When filing jointly, payments are based on both spouse's income.
However, filing separately as a couple could cause the loss of tax benefits such as certain credits and deductions, including the student loan interest deduction, American Opportunity Tax Credit (for educational expenses), Earned Income Tax Credit, the Child Tax Credit and the Child and Dependent Care Credit.
The Public Service Loan Forgiveness for being employed with the government or not-for-profit organization will not be impacted by the IDR payment amounts. The program forgives the remaining balance on your direct loans after you have made 120 qualifying monthly payments (10 years) while working full-time for an eligible employer.
The suggestion is to determine the household situation, income, how many children/dependents, additional educational costs, tax liability using married filing joint v married filing single and weighing it against the fluctuation of the student loan payment.
You can use the Federal Student Aid Loan Simulator https://studentaid.gov/loan-simulator/ or the specialized IDR calculators to determine the monthly payments under different repayment plans and tax filing statuses.
