• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

US Student Loan Center

Student Loan Forgiveness, Repayment Help, and Options

Member Login
  • Student Loan Consolidation
  • Student Loan Forgiveness
  • Student Loan Repayment Plans
  • Contact Us
  • Blog
You are here: Home / US Student Loan Center / Student Loan Consolidation / How To Payoff Student Loans / Marriage And Student Loans: What Are The Affects?

Marriage And Student Loans: What Are The Affects?

August 31, 2016 by Katie Bentley 1 Comment

As expected, most people head onto a four-year university and apply for student loans.

The average of $35,000 takes quite a while to pay off. 

During this time, many people will rack up other debts too.

All of this is very common.

You most likely have a debt of your own.

And so does your other half. 

Under all the romance, marriage is law-binding.

So the question is, will you be marrying your fiancé(e)’s student loans and debt as well?

The Short Answer

No.

In most cases, you aren’t financially responsible for your spouse’s loans if they were incurred before marriage.

On paper, you won’t be affected.

Special Circumstances

If you sign as a joint account holder after marriage, the debt will become a joint debt (more on that later).

If the debt incurred is for a family necessity (i.e. food, medical care or shelter), it might also become a joint debt.

Some states have slight variations to the rules.

Community Property States

Researching your state laws is important.

.SL - Marriage And Student Loans - What Are The Affects

In Alaska, you can choose to sign an agreement, turning assets into community property.

Marrying Into Bad Credit

Contrary to popular belief, credit histories remain separate after marriage.

What will be the effects on your credit history?

  • Opening joint accounts: your score won’t be directly affected, unless your spouse has bad credit habits
  • Applying for joint credit: your partner’s credit score might increase your interest rate.
  • Co-signing a loan for your spouse: only co-sign if you are fully able to make the payments, when needed.
  • Becoming an authorized user: your score will be hurt if the account was in bad standing initially.

Filing Joint Income Tax Returns

There are benefits to joint income tax returns.

By filing jointly, many couples save by paying less.

Marriage And Student Loans What Are The Affects1
Refinancing Or Consolidating Loans

Maybe you want to refinance or consolidate loans with your spouse into one account.

That was possible before 2006.

Now, it is prohibited by federal law due to problems during divorce.

Your loans must be refinanced or consolidated individually.

What About Nuptial Agreements?

Prenuptial (before marriage) and postnuptial (after marriage) agreements are a controversial topic.

However, it’s on the rise and for good reason.

Marriage And Student Loans What Are The Affects2

These are signed to exclude debts and assets from marital property.

You can agree on how to deal with debt and income.

The above chart shows the most popular areas covered in a prenuptial agreement.

An attorney should definitely be consulted for this.

A well-written nuptial agreement can provide a good foundation for your marriage.

It will also protect you in the case of a breakup.

A tax or consumer debt lawyer can also be of great help with loans and marital property laws.

Worst Case Scenarios

You might not want to think about these, but it’s still good to know what can happen.

After a divorce, both might still be responsible for joint debts. 

Even if the other was ordered to pay, the creditor might still come for you.

You can return to the divorce court and receive a reimbursement if that is the case.

If your spouse passes away, loans with death discharge clauses will end.

All federal student loans have this clause.

Some private lenders do as well.

Otherwise, the widow or widower will be responsible for the debt.

More To It Than Responsibility

Even if you aren’t responsible, debt from either one will affect your budget and lifestyle.

Below is a representation of student loan debt balance over 10 years.

Marriage And Student Loans What Are The Affects3

Large chunks of money will need to be set aside for monthly repayments.

You might be the one responsible for monthly expenses during that time.

This might mean a lower standard of living until the debt is paid off. (Which will take years!)

Having The Financial Talk

It might be awkward to start this conversation, but you’ll be thankful you did it.

Look over each other’s credit history and reports.

Discuss whether the priority is paying off debt quickly, or having a higher monthly budget.

Learn about each other’s financial attitudes and habits.

Money is one the top reasons for fights.

It’s crucial for both you and your partner to be aware of your responsibilities.

Communicate with each other.

Plan and budget well and enjoy a loving and healthy marriage!

(Did You Know? The IRS can seize your tax refund if you are running late on student loan payments. Go through this BEFORE filing your tax return this year and see How To STOP Late Payments From Taking Your Tax Refund. Click here to learn more and get the free guide.)

Filed Under: How To Payoff Student Loans, Student Loan Consolidation

Reader Interactions

Previous article: Wells Fargo’s $4.1 Million Settlement For Illegal Student Loan Fees
Next Post: Should You Be Paying Extra On Your Student Loans?

Trackbacks

  1. Financial Considerations To Make Before Saying 'I Do' - FinancialWellness.org says:
    September 26, 2016 at 1:30 pm

    […] Individual debt such as college fees should remain separate.  […]

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Do Not Remove This Widget for Some Reasons

POPULAR ARTICLES

  • Pediatrician-visiting-father-child-hospital-bed-careers-that-forgive-student-loans-ss-featureCareers That Forgive Student Loans [Part 2 Updated]
  • Feature Image | Benefits To A Student Consolidation Loan5 Benefits To A Student Consolidation Loan
  • What The Discontinuation of Sanford Brown Means For YouWhat The Discontinuation Of Sanford Brown Means For…
  • FEATURE | How To Lower Your Navient Student Loan PaymentHow To Lower Your Navient Student Loan Payment
  • How-To-Pay-Off-Student-Loans-feature-imageHow To Pay Off Student Loans: FAQ Before &…
  • How-To-Consolidate-Private-Student-Loans-Loan-Consolidation-Guide-1How To Consolidate Private Student Loans | Loan…
  • FEATURE | Student Loan ForgivenessWhat Is Student Loan Forgiveness? 2024 How To Guide

Footer

Copyright 2024 – US Student Loan Center – All Rights Reserved

DISCLAIMER: Federal Student Loan Programs provided by the Department of Education are generally free to apply for and debtors may apply for relief by themselves. We charge fees for our services, and there is never a Department of Education processing fee. We are not endorsed, sponsored, or in any way related to the Department of Education. A consolidation combines several loans into one for the purpose of lowering a student loan payment. We make no guarantees about APR upon consolidation. APR is set by your student loan servicer. For more information on Fee Free Federal Student Loan Programs please visit www.ed.gov. We solely assist in preparing applications for Government benefits and you are not required to use or obtain these benefits.


Terms And Conditions | Refund Policy | Privacy Policy

US Student Loan Center
4300 W Cypress St
Suite 210
Tampa, FL 33607
Email Support: onboarding@usstudentloancenter.org
Phone: 1-877-433-7501