Does Spouse Income Count for Student Loan Repayment? | IDR Explained

Updated on October 28, 2025

Your repayment plan determines whether your spouse’s income counts. Under the PAYE, IBR, and ICR plans, your spouse’s income only counts if you file jointly. Before the courts halted the SAVE plan, it always included your spouse’s income regardless of filing status. The Education Department’s new Repayment Assistance Plan, expected by July 2026, hasn’t specified how it will treat spousal income.

How Each IDR Plan Treats Spouse Income

Each income-driven repayment (IDR) plan treats spousal income differently. Here’s what each plan counts:

Plan

Includes Spouse’s Income?

When Filing Jointly

When Filing Separately

1. SAVE (formerly REPAYE)

Always

✅ Yes

2. PAYE

Depends

✅ Yes

❌ No

3. IBR

Depends

✅ Yes

❌ No

4. ICR

Depends

✅ Yes

❌ No

5. RAP (launches 2026)

TBD

✅ Expected

❓ Unknown - rulemaking in progress

The upcoming Repayment Assistance Plan (RAP) hasn’t specified whether filing separately will exclude spousal income. The Education Department is still drafting those rules ahead of the 2026 rollout.

Why Your Tax Filing Status Matters

Your tax filing status determines which income counts:

Married Filing Jointly: Both incomes count on every plan.
Married Filing Separately: Only your income counts under PAYE, IBR, and ICR. (Under the now-paused SAVE plan, both incomes counted regardless.)

The impact can be substantial. If you earn $60,000 and your spouse earns $90,000, filing separately could cut your payment by more than half — though you’ll likely owe more in taxes.

When Filing Separately Makes Sense

Filing separately makes sense when it saves you more on loan payments than it costs you in taxes.

This works best when:

You’re in IBR, PAYE, or ICR — not SAVE.
Your spouse earns significantly more than you do.
Your spouse doesn’t have student loans.

Filing separately means only your income counts toward your payment under those plans, which can dramatically lower what you owe each month. In turn, lowering your payments maximizes the benefits you get from income-based repayment forgiveness.

But filing separately has two drawbacks:

It typically raises your tax bill.
It can also make you ineligible for certain deductions or credits.

Note: You can amend your tax return from “Married Filing Separately” to “Married Filing Jointly” within three years. This allowance lets you calculate your student loan payments based on your income and then, later, if your situation changes, amend your tax return status from separate to joint.

What Happens If You Get Married While on IDR

Getting married doesn’t automatically change your student loan payment. Your servicer recalculates your payment at your next annual recertification based on your most recent tax return.

You can also recertify early if you want your new filing status or updated income reflected before your scheduled date. This makes sense if you start filing separately or your income changes significantly.

FAQs

Does IBR include spouse income?

Only if you file taxes jointly. If you file separately, IBR uses only your income to calculate your payment. This makes IBR one of the few remaining plans where married borrowers can exclude a spouse's income from their monthly payment.

Does PAYE include spouse income?

Yes, if you file jointly. If you file separately, PAYE counts only your income. Because PAYE is being phased out by 2028, this filing advantage applies only to borrowers already enrolled in the plan before it closes to new applicants.

Does SAVE include spouse income?

Yes. Under SAVE, your spouse's income is always included, even if you file separately. Although SAVE is currently paused by court order, this made it the only IDR plan where married borrowers cannot exclude spousal income by filing separately.

Can I exclude my spouse's income from student loan repayment?

Yes, but only under IBR, PAYE, or ICR if you file taxes separately. Your servicer will use only your income when recalculating payments. It's unclear whether the Repayment Assistance Plan will allow this exclusion when it launches in 2026.

Should I file separately for student loan repayment?

Only if the student loan savings exceed the higher taxes you'll owe. Filing separately lowers payments on IBR, PAYE, or ICR but can eliminate certain tax deductions and credits. You can amend your return within three years if you later decide to switch back to joint filing.

Will the new Repayment Assistance Plan (RAP) include my spouse's income?

The Education Department hasn't finalized these rules yet. Until the final regulations are published, the treatment of spousal income under RAP remains uncertain. For now, only IBR, PAYE, and ICR allow married borrowers to exclude spousal income by filing separately.