Legislation to separate Joint Consolidated student loans signed into U.S. law

On July 1, 2006, Congress ended the Joint Consolidation Loan program, which enabled married couples to combine student loan debt.

The program, however, did not take into consideration severing existing student loans in cases of domestic violence, economic abuse or an unresponsive partner. Borrowers across the U.S. remained liable for an abusive or uncommunicative ex-spouse’s student loan debt.

According to a press release, borrowers were unable to access federal relief even from the Public Service Loan Forgiveness (PSLF) program.

President Joe Biden signed into law the Joint Consolidation Loan Separation Act.

The legislation was led by Sen. Mark Warner of Virginia.

“I’m thrilled that borrowers who have been ensnared in these exploitative loans for decades will finally get relief,” Warner said in the press release. “Passing this law means freedom for thousands of borrowers – freedom from financial and domestic abuse, freedom to control their own financial future, and freedom to enjoy the same benefits as other borrowers across the country.”

Borrowers under the program can now submit applications to the U.S. Department of Education to have joint consolidation loans split into two separate federal direct loans, and interest will be split proportionally based on the percentage of each borrower’s original loan. The two new federal direct loans will have the same interest rates, according to the press release, as the joint consolidation loan had, and borrowers will now have access to the PSLF program.

The legislation is supported by the National Network to End Domestic Violence, National Consumer Law Center, North Carolina Coalition against Domestic Violence and the Virginia Sexual and Domestic Violence Action Alliance.

In 2017, Warner introduced the original version of the legislation after a constituent in Northern Virginia communicated her struggle in paying a joint consolidation loan on a teacher’s salary while raising two children. She had moved thousands of miles away from her ex-spouse, who refused to pay his share of the joint loan. The Northern Virginia woman faced the threat of her public school teacher salary being garnished to pay the loan debt.