The Math Behind Married Filing Separately For IBR Or PAYE

For married couples with student loan debt, one of the most popular strategies for lowering your monthly student loan payment and potentially qualifying for more student loan forgiveness is to file your taxes "married, filing separately".

For both Income Based Repayment (IBR) and Pay As You Earn Repayment (PAYE), your monthly student loan payment is calculated based on your Adjusted Gross Income (AGI).​ If you're married and file a joint tax return, your monthly student loan payment is calculated on your joint AGI.

So, a simple way to potentially lower your student loan payment and increase your potential student loan forgiveness is to lower your AGI - and married couples can potentially do this by filing separately versus jointly.

Read the full article here.