President Joe Biden on Tuesday signed a bill allowing couples who combined their student loans when they were married to separate the debt, opening up the possibility for some of these borrowers to have part of their debt forgiven, USA Today reported. In 2006, Congress eliminated a program that allowed married couples to merge their student debt into a joint loan in exchange for a lower interest rate and single payment. Through the program, couples became legally responsible for each other’s debt. But the terms of the joint loans prevented borrowers from severing their debts — even in cases of domestic violence, economic abuse, or divorce — and excluded them from access to debt relief, such as Biden’s student loan forgiveness plan, Public Service Loan Forgiveness or payment programs that lower monthly payments based on income. The act allows borrowers to split their loans based on the initial amount each owed into two separate federal direct loans that will have the same interest rates as the joint consolidation loan. Borrowers must apply through the Education Department, which requires both parties to approve the separation. But those who show evidence that they have experienced domestic violence, economic abuse, or have an unresponsive partner, are able to apply themselves.In June, the Senate unanimously approved the Joint Consolidation Loan Separation Act with bipartisan support. The House passed the bill in September with a 232-193 vote — with 14 Republicans voting in favor. The bill was introduced by Sen. Mark R. Warner (D-Va.) and Rep. David E. Price (D-N.C.).
