Does my student loan debt affect my spouse?
Debt you bring into a marriage typically remains your own, but loans taken out while married can be subject to state property rules in divorce. And if one spouse co-signs the other’s private student loan, he or she is legally bound to the loan unless you can obtain a co-signer release from the lender.
Is spouse responsible for student loan debt incurred before marriage?
Marriage does not make you responsible for student loan debt your spouse incurred before you tied the knot. Each spouse remains responsible for the debt they borrowed to pay for school. Even if you live in a community property state, premarital debt is considered separate property.
Can they garnish my husbands wages for my student loans?
The answer is yes. Your student loan creditors can garnish your spouse’s wages to recover the amount of your defaulted student loan. You don’t mention whether the loan was incurred before or after marriage.
Who is responsible for student loans in a divorce?
After a divorce, student loan debt is typically still the responsibility of the person who incurred it. However, there are exceptions depending on your personal situation and what the courts decide is fair and equitable division for both spouses.
Do I have to pay my husband’s student loans if he dies?
Do I have to keep paying my student loan if my parent or spouse dies? Yes, if your parent or spouse dies, you will still have to repay your student loans. Even if your parent or spouse was helping you with payments, you are still legally bound to repay the loans.
Can the IRS take my refund for my wife’s student loans?
If you’re married and you file taxes jointly, the IRS may take your entire tax refund regardless of whether your spouse has any student loan debt of their own. However, it may be possible to get your spouse’s portion of the refund returned to them if you file an injured spouse claim form (IRS form 8379).
Do student loans delay marriage?
Marriages, families and relationships are being impacted as well. … 57% of student loan borrowers say student loans are a major stress in their relationship with their spouse or significant other. One in four student loan borrowers delay getting married because of student loans.
What happens if you never pay student loans?
Let your lender know if you may have problems repaying your student loan. Failing to pay your student loan within 90 days classifies the debt as delinquent, which means your credit rating will take a hit. After 270 days, the student loan is in default and may then be transferred to a collection agency to recover.
Should I help my wife pay off student loans?
If your partner can help you pay more each month this could help reduce the principal balance of the loan. This in turn can help reduce both the amount of time it takes to repay the loan, and also the amount of interest that accrues over the life of the loan.
What happens if my private student loans go to collections?
You may face a lawsuit if you default on your private student loans. If the lender has trouble collecting payment on a private student loan default, it may sue you (and your cosigner) for repayment.