Should you marry someone with student loans?

What happens if you marry someone with student loan debt?

If your spouse takes out a student loan during your marriage, but can’t make payments and defaults, creditors in some states can go after both of your wages and assets — or, if you file jointly, your tax refund. The federal government will also go after your tax refund for loans taken out after marriage that default.

Does marriage affect student loan repayment?

If you’re on an income-driven repayment plan for your federal student loans, getting married could affect your payments. If you file your taxes as “married filing jointly,” your income and your spouse’s income will be combined into one adjusted gross income. As a result, your bill could increase.

Do I inherit my spouse’s student loan debt?

No. Student debt that you bring into a marriage remains your debt. … Your spouse might help pay down your debt, but you’re the only one legally responsible. This scenario also applies if you marry someone who has federal PLUS loans, which are available to parents and graduate and professional students.

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Can the IRS take my husband’s tax refund for my 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).

Are student loans forgiven at death?

If you die, then your federal student loans will be discharged after the required proof of death is submitted.

Will income based repayment hurt my credit score?

Signing up for Income-Based Repayment, Pay As You Earn or Revised Pay As You Earn may not directly help or hurt your credit score. However, the indirect benefits can be large, and going the income-driven repayment route can have a positive impact on your ability to get credit.

Does student loan debt affect credit score?

How student loans affect your credit score. Student loans are a type of installment loan, similar to a car loan, personal loan, or mortgage. They are part of your credit report, and can impact your payment history, length of your credit history, and credit mix. If you pay on time, you can help your score.

How do I protect my assets from student loans?

Another way to keep assets out of probate is to place them into a trust. Assets owned by a trust can only be distributed to the named beneficiaries under the terms of the trust. Creating a trust to distribute assets to your heirs will protect your wealth from creditors, including private student loan holders.

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Does marriage affect financial aid?

How does financial aid for married students work? Your marital status plays a significant role in your financial aid eligibility. … Instead, your marital status affects whether you’re considered a “dependent” or “independent” student on the Free Application for Federal Student Aid (FAFSA).

What happens if you never pay your student loans?

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.

Do student loans disappear after 7 years?

Student loans don’t go away after 7 years. There is no program for loan forgiveness or loan cancellation after 7 years. However, if it’s been more than 7.5 years since you made a payment on your student loan debt and you default, the debt and the missed payments can be removed from your credit report.

Can I go to jail for not paying a student loan?

Can you go to jail for not paying student loans? Technically, you cannot go to jail for not paying your student loans, the Education Department assures borrowers. … It is true that defaulting on student loan debt can lead to being arrested, but default alone is not a criminal offense.