Thursday, 23 July 2015 00:00

How Marriage Can Affect Your Student Loans

Rate this item
(1 Vote)

According to recent data from Experian, 40 million Americans have at least one outstanding student loan.  The average amount of debt is $29,000.00, which is an all time high.  A common question for many borrowers is “how will my student loans be affected if I get married?” 

If your loans are being repaid through income based or income contingent repayment, your repayment plan may be affected if you get married as discussed in a recent article.  You are required to provide yearly income information to your loan servicer so your payment can be reassessed.  If you file a joint tax return, your spouse’s income will be counted when reassessing your payment.  However, if you file a separate tax return, your spouse’s income will not be counted but you may lose other tax benefits of married filers.  You should speak with a tax professional to find out which tax filing status is best for your individual situation.

Another common question is whether a spouse can ever be held responsible for the other spouse’s student loans.  Federal loans contain a death discharge provision in the event a student loan borrower dies before the loan is repaid.  However, this is not the case for all private loans.  Whether there is a death discharge provision depends on the original loan contract.  If you are married at the time you take out a student loan, the loan may be determined to be a “marital debt” if you were to divorce, depending on the laws in your state.  Additionally, both spouses may be responsible for the loan if one spouse co-signed for the other.

Before getting married, it is important to have an honest conversation about each future spouse’s financial goals and debt.  High amounts of student loan debt may affect your ability to qualify for a mortgage loan, obtain credit, or save for retirement.  It is important to get your student loans in order before combining your finances with those of your future spouse.  If you need help navigating your loans and repayment options, our office can help.  

Read 5571 times Last modified on Saturday, 24 November 2018 23:54

Initial Free Consultation

  1. Your Name(*)
    Please let us know your name.
  2. Your Email(*)
    Please let us know your email address.
  3. Phone(*)
    Please write a subject for your message.
  4. Message(*)
    Please let us know your message.
  5. Invalid Input
  6. Enter Code
    Invalid Input

Compassionate. No-nonsense. Great job. Saved me $85K!

I had three choices: two large groups, or Mr. Rausa. I chose Mr. Rausa because of his numerous excellent reviews from clients as well as other attorneys. Also, I wanted someone to provide personal service and have a vested interest in my difficult student loan case.

I certainly made the right choice. Mr. Rausa personally answered two of my phone calls and regularly answered my emails, even on one Sunday evening.

After 30 years of student loan "prison", he got me freedom AND he even got the US Dept. of Justice to dismiss 25% of my loans, which saved me $85K.

I feel like I have a new lease on life because of Mr. Rausa. I wish I could recommend 10 stars.

Posted by a client - September 25, 2018

AVVO Lawyer Rating is Superb!

Respected Legal Source

D.J. Rausa interviewed by the Wall Street Journal for article on Bankruptcy and Student Loan Debt.

Debt Doc's D.J. Rausa is recognized as a legal expert in Student Loan Debt Resolution and the associated Bankruptcy Laws.

Read what D.J. recently told The Wall Street Journal regarding the probable rise in Student Loan Debt Resolution through Bankruptcy.

Client Testimonial

To whom it may concern,
Debt Doc's attorneys are extremely knowledgeable with the complexities of Federal Student Loans.
I went from a thriving career to full medical disability, ending with an SSDI placement. Unfortunately, I lost everything and became unable to continue making the student loan payments, so it was in deferment for over five years. When the SSDI settled I tried to negotiate an affordable payment plan with the loan holders but they refused my efforts, instead demanding over twice the amount I could afford.
I contacted DJ Rausa at Debt Doc and found him to be courteous, responsive and quick to assess my situation. He was sure he could help and took time to answer all questions, which relieved much anxiety. Within months he successfully resolved the debt! With much confidence, I highly recommend Mr. Rausa.
Please contact me if you have any additional questions.
Websites with bunus at Bingo games.