Two ways to buy yourself time

If you’re married and on an income-driven repayment plan, your spouse’s income might be killing your payment. I hear this every week: “My payment is $1,200 because they’re counting my husband’s salary.”

The fix isn’t complicated, but it’s not as simple as checking a box. It’s a math problem — and most people don’t realize there’s a third option nobody talks about.

Here’s the short version: if you file your taxes married filing separately, your spouse’s income doesn’t count toward your IDR payment on IBR, PAYE, or ICR. File jointly, and it does.

But filing separately costs you real money.

You lose the student loan interest deduction, education credits, earned income credit, child care credit. Depending on your situation, that could be thousands of dollars a year in lost tax benefits.

So the question isn’t,canI remove my spouse’s income? The question is,is it worth it?

I made a video walking through how to evaluate that decision — including a strategy where you file separately, get your IDR payment set based on your income alone, then amend back to joint within three years to reclaim the tax benefits you gave up: MFS vs MFJ: Which One Lowers Your IDR Payment?

But what if you just need to pause?

Not everyone is trying to optimize their payment. Some of you just need to stop the bleeding for a few months.

Federal loans offer two ways to pause: deferment and forbearance.

Deferment is for specific life events — unemployment, economic hardship, going back to school. If you qualify, you can pause payments for up to three years. And if you have subsidized loans, no interest accrues during that time. Unemployment deferment requires you to be receiving benefits or actively job-seeking. Economic hardship deferment kicks in if you’re earning less than 150% of the poverty line or receiving federal benefits like SNAP or TANF.

Forbearance is broader. Your servicer can grant it for financial difficulties, medical expenses, or just about anything else that’s making it hard to pay. But it maxes out at 12 months at a time, with a three-year lifetime cap — and interest always accrues.

Both require that you’re not in default.

Here’s something most people don’t know: consolidation resets your eligibility for both. If you’ve already used up your three years of deferment or forbearance, consolidating your loans starts the clock over. You get a fresh three years.

Interest still accrues during forbearance, and consolidation has tradeoffs — you lose any credit toward forgiveness, for example. But if you need time to pay down other bills, wait for your income to drop at retirement, or hold off until next year so you can file MFS instead of MFJ, this is how you buy it.

More on deferment and forbearance: Can’t Pay Your Loans? Consider Forbearance or Deferment

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What we published this week

1/Credible vs. SoFi: How to Compare Your Options Credible is a marketplace. SoFi is a lender. They’re not competitors — they’re different tools. Here’s how to use each one.

2/Credible Review: Is It Legit? Free marketplace for comparing refinancing rates. No hard credit pull. Here’s how it works and what to watch for.

3/PSLF Buyback Timeline: How Long Does It Take? The official answer is 45 days. The real answer, based on borrower data, is 18-24+ months. Here’s what actually moves the needle.

4/Student Loan Default: Consequences & How to Fix It Federal loans default after 270 days. Private loans trigger lawsuits. This is everything that happens — and how to get out.

5/How to Get Student Loans Out of Default Fast Consolidation, rehabilitation, settlement, bankruptcy — ranked by speed, with real timelines for each.

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As always, if you want to walk through your situation, you can schedule a consultation here: https://www.tateesq.com/book-a-call

Boston went well. I presented my process for handling private student loan bankruptcy cases — slide deck here. I also sat on a panel about how to price adversary work.

One thing that came up: there’s no single way to charge for these cases, and different models reflect different levels of commitment. Some attorneys offer low upfront costs with refunds if you lose — but that model often means they’re not going to trial if the DOJ pushes back. Others charge more because they’re prepared to fight through a contested hearing.

Neither is wrong — but they’re buying different things. Before you hire anyone for something this high-stakes, ask:What happens if the first answer is no?