Marriage Penalty in the Repayment Assistance Plan (RAP), Explained

The Repayment Assistance Plan (RAP), introduced as part of the Big Beautiful Bill student loan changes in July 2025, significantly reshapes federal student loan repayment. While RAP simplifies payments for individuals, married borrowers face complex decisions regarding tax filing status, income calculations, and long-term financial impacts. This article explains RAP’s “marriage penalty,” helping couples make informed repayment choices.

Under RAP, monthly payments vary dramatically based on whether couples file taxes jointly or separately. RAP’s payment percentages directly apply to adjusted gross income (AGI), but the calculation differs significantly between filing methods, particularly impacting households where both spouses have loans.

Filing Separately Means Lower Payments

When filing separately, RAP payments are based solely on each borrower’s individual income. This approach typically reduces monthly payments, especially beneficial if one spouse earns significantly more or if only one spouse has loans.

Example: Consider a couple where each spouse earns $47,500 annually. Filing separately results in each spouse paying approximately 4% of their individual income, about $158 each month, totaling roughly $316 monthly.

Filing Jointly Means Higher Payments

If spouses file jointly, RAP calculates payments based on combined household income, significantly increasing monthly obligations. This combined calculation doesn’t proportionally split income, essentially applying the full combined income to each spouse’s loan payments.

Example: For the same couple, filing jointly with a combined income of $95,000 moves them into an 8% RAP payment bracket. Their total monthly payments jump to approximately $712, more than double the separate filing scenario.

Related: Student Loan Changes 2025 (FAQs)

When only one spouse carries student loans, the impact of tax filing status is even more pronounced:

• Filing Separately: Payments are calculated exclusively based on the borrower’s income. For example, a borrower earning $50,000 annually would have a RAP payment of 5%, around $208 monthly.

• Filing Jointly: Payments include both spouses’ combined income. If the non-borrower spouse earns $100,000 annually, the total household income of $150,000 triggers a 10% RAP rate, resulting in a payment of $1,250 per month, over six times higher than filing separately.

Related: How Spousal Income Affects Student Loan Payments

Under RAP, borrowers receive a fixed monthly deduction of $50 per dependent child. However, for married couples filing separately, this deduction only applies to dependents claimed on your individual tax return. Previously, Income-Driven Repayment (IDR) plans allowed a broader definition of family size, including household members who received more than half their support from you, even if they weren’t claimed on your individual tax return.

This narrower definition under RAP means filing separately could reduce the number of dependents you’re allowed to claim, potentially decreasing your total monthly deduction.

For a detailed comparison of how family size definitions differ across repayment plans, see our guide comparing IBR vs. RAP vs. New Standard Plan.

RAP’s payment calculation methodology does not proportionally divide combined household income when couples file jointly. Instead, the full combined income is used to calculate each spouse’s monthly obligation. This significantly amplifies monthly payments for dual-income couples, creating what’s commonly referred to as the “marriage penalty.”

While filing separately under RAP reduces monthly payments, it isn’t without trade-offs. Couples filing separately can lose eligibility for valuable tax benefits, including:

• Earned Income Tax Credit (EITC)

• Certain education-related deductions and credits

• Potentially higher marginal tax rates

Couples must carefully weigh these potential tax losses against RAP payment reductions when making filing decisions.

Early versions of the Repayment Assistance Plan created uncertainty around tax filing options for married borrowers. An initial Senate draft temporarily eliminated the option to file taxes separately, causing confusion about potential higher payments. Although the final House-approved bill restored the Married Filing Separately option, the shifting proposals left borrowers uncertain about RAP’s rules.

To strategically manage RAP’s marriage penalty implications, married borrowers should:

• Run detailed RAP payment simulations under both tax filing scenarios.

• Compare RAP savings directly against potential tax benefit losses.

• Regularly monitor legislative developments that might alter filing flexibility.

• Consult a tax professional if unsure about tax implications.

RAP significantly impacts married couples, creating complex financial trade-offs between loan repayment savings and potential tax penalties. Thorough analysis and strategic decision-making are essential to avoid costly mistakes. For broader context on RAP’s overall impacts, visit our comprehensive guide to the Repayment Assistance Plan.