Before 2006, some married student entered the Joint Consolidation loans together so that they can lower their family payment to the Federal Loan servicer. While this provided some relief to the family, it also created problems when the marriage ended. After 2006, Higher Education Reconciliation Act of 2005 (HERA) removed these loans but did not give guidance on how to handle them. Effectively, these students cannot reconsolidate the loans, transfer them, or separate them to an individual. Even worse, both spouses or former spouses need to consent and qualify for federal programs designed to help borrowers. Essentially, both spouses have to count on the other to fulfill the obligations of the loan or face the entire cost of education for two.
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