Paul L. Caron

Thursday, July 30, 2015

Simkovic: The Student Loan Marriage Penalty

Michael Simkovic (Seton Hall), Student Loan Marriage Penalty:

How should marriage affect legal determinations of ability to pay, and therefore obligation to pay?  These are questions that tax scholars have long debated.  Similar issues are now being debated in higher education circles because of the growth of income-based student loan repayment plans. ...

In the context of income contingent repayment of student loans, married debtors may be harshly penalized if Department of Education proposed regulations remain unchanged.  This is bad policy and a misreading of Congressional intent according to Professor Philip Schrag of Georgetown, a notable expert on income based repayment plans.  Schrag argues that the proposed regulations and definitions of Income adopted by the Department of Education for the REPAYE program should be revised to more closely parallel the Income Taxation approach.  Schrag's comment on the DOE regulations is available here.

Legal Education, Tax | Permalink