When students cannot separate their U.S. Department of Education and Sallie Mae student loans after divorce, it creates tremendous individual financial burden, destroys credit ratings, and lends to tremendous burden on the individuals as they must attempt to ensure the second party pays their portion of the loan to avoid a lowered credit rating. In some cases the transfer of these loans to other entities also has resulted in higher percentage rates.
Congress, in its wisdom, repealed married students’ ability to consolidate loans as part of the Higher Education Reconciliation Act of 2005, and the original provision was repealed in 2006. Married students are no longer permitted to consolidate their students loans, thus unconsolidation after divorce should be permitted.