What is a Joint/Spousal Consolidation Loan?
Joint/Spousal Consolidation Loans were issued to married individuals so that they could combine their individual loans into a single consolidation loan. Borrowers who combined their loans agreed to be jointly and severally liable for the joint debt.
Why are these loans being separated?
Joint/Spousal Consolidation Loans were technically discontinued in the early 2000s. Generally, borrowers with this loan type have struggled to pursue Public Service Loan Forgiveness (PSLF) due to the loan type requirements needed for pursuing PSLF.
Where can I find the separation application and promissory note?
The combined separation application and Direct Consolidation Loan promissory note can be found here for all Direct and FFEL Joint Consolidation Loan borrowers as a downloadable paper application. There is no online application.
Where can I send the application once it's completed?
The application can be sent to ED_Consolidation_Orig@aidvantage.studentaid.gov, noting your desired final servicer, or to one of the addresses listed in the application.
Are there different ways to apply for separation depending on the relationship between co-borrowers?
Yes, there are two options: a joint application and a separate application.
How does the joint application process occur?
Each co-borrower will submit a separate application to the Consolidation Originator. Once the separation and re-consolidation are complete, the co-borrowers will no longer have a Joint/Spousal Consolidation Loan debt obligation.
How is the separate application process implemented?
You can apply without your co-borrower if you certify on the application that you:
- have experienced domestic violence by the other co-borrower;
- have experienced economic abuse from the other co-borrower;
- are unable to reasonably access the other co-borrower's loan information.
The Education Department (ED) may also allow separate applications if it determines that it would be in the best financial interest of the federal government.
What happens to the other co-borrower on a separate application who did not apply?
The loan holder will notify the remaining borrower of their sole responsibility for the remaining balance of the Joint/Spousal Consolidation Loan, as well as their ability to complete the application themselves. If the other co-borrower doesn't complete an application, the original loan holder will continue the appropriate servicing of the Joint/Spousal Consolidation Loan.
How does the One-Time IDR Adjustment apply to me?
The Adjustment was applied to all Joint/Spousal Consolidation Loans where the separation application was submitted by June 30, 2025.
If you have Direct Joint/Spousal Consolidation Loans and meet all other PSLF requirements, you have been credited with any earned progress toward PSLF.
If you have FFEL Joint/Spousal Consolidation Loans, the adjustment has been applied, but only credited if the separation application was submitted by June 30, 2025.
Applications submitted on or after July 1, 2025, will receive a weighted average of PSLF-eligible or IDR-eligible payments that were applied to the Joint/Spousal Consolidation Loan. FFEL Joint/Spousal Consolidation Loans will only receive a weighted average of certain payments credited towards IDR forgiveness. There will be no credit for PSLF.
Borrowers pursuing Public Service Loan Forgiveness (PSLF) may have missing qualifying payments on their separated Direct Consolidation Loan. PSLF information will be updated in spring 2026.
How does the OBBBA 7/1/26 deadline affect my Joint/Spousal Consolidation Loan?
Historically, separating your loans into a new Direct Consolidation Loan has unlocked access to legacy Income-Driven Repayment (IDR) plans, but the One Beautiful Bill Act changed this: for consolidation loans disbursed on or after July 1, 2026, you will have access to two new repayment plans instead.
Separation applications typically take several months to process, and FSA has recommended submitting before April 1. Since that window has passed, the later you apply, the greater the risk your disbursement falls after the July 1 cutoff. Direct Consolidation Loans disbursed by June 30, 2026, should maintain access to the legacy IDR plans, PSLF, or IDR forgiveness.
What are the consequences if my newly separated Direct Consolidation Loan is disbursed on or after July 1, 2026?
1. Separating your loans from your co-borrower will result in a new Direct Consolidation Loan. If your newly separated Direct Consolidation Loan disburses after July 1, you can still pursue PSLF by enrolling in RAP, which counts as a qualifying repayment plan.
2. Your repayment plan options will change. If your newly separated Direct Consolidation Loan disburses on or after July 1, all of your loans, not just the newly separated ones, will only be eligible for the new Tiered Standard Plan or RAP (Repayment Assistance Plan). RAP is a new income-driven option, but it works differently from the IDR plans you may have access to now. If you don't separate, a FFEL Joint/Spousal Consolidation Loan will retain access to Income-Based Repayment (IBR), and a Direct Joint/Spousal Consolidation Loan will retain access to the legacy IDR plans.
3. This cannot be undone. Once your separated Direct Consolidation Loan is originated, it cannot be reversed. The current IDR plans would be permanently unavailable, and your access to forbearance and deferment would be limited.