Does the love of your life have a giant pile of student loan debt? If so, that’s not surprising. Approximately 70% of college graduates have at least some student debt—and the average amount of that debt is somewhere around $37,712.
It’s a common misconception that once you marry, you’re jointly responsible for your spouse’s student loan debt. In fact, in the vast majority of cases, you’re not. There are exceptions to this rule, however.
Here are answers to common questions about who exactly gets saddled with your spouse’s student loan when you marry.
When you get married, do you share debt?
If we’re talking about debt you incurred before marriage, the answer is no.
The picture changes when you’re talking about debt incurred after marriage, though. And part of that depends on where you live.
If you live in a common-law state, your spouse’s debts are rarely considered yours—unless you cosigned or, in some cases, took out the loan to pay joint expenses.
In community property states, the loans your spouse takes out after marriage are considered jointly owned. There are currently nine states with community property laws—and one, Alaska, where you can opt in.
In community property states, creditors can go after you to pay your spouse’s debt if your spouse dies or becomes insolvent.
Regardless of where you live, you could make decisions as a couple that result in sharing debt. For instance, if you cosign on your spouse’s loan, you will be held responsible if he or she can’t pay.
Will I be responsible for student loans my spouse incurred before marriage?
In both community property and common law states, all debts your spouse incurs before marriage stay solely their responsibility after you say “I do”—including student loans.
The only way that changes is if you do something to take on more responsibility—such as cosigning when your spouse refinances his or her student loans.
Will I be responsible for my spouse’s student loans after a divorce?
Not if your spouse incurred those debts before marriage.
If your spouse took out the loan after marriage, it depends on state law and the court. Community property states handle debt between married couples differently than common law states.
Divorce courts further complicate the issue. It’s not unusual for the court to allocate debts in a more nuanced way than by simply looking at the name on each loan. In some cases, courts consider professional degrees earned during the marriage as joint property.
This can have serious consequences in terms of whether you’ll be asked to chip in for your ex-spouse’s loans. In some cases, the higher-earning partner may be required to help pay off the lower earner’s student loans after divorce as a form of financial support.
And if your partner made big sacrifices to help put you through school—such as putting off his or her own career goals—you may be asked to compensate him or her for that help.
What happens to student loans when a spouse dies?
It depends on the type of loan and the state where you live.
Federal loans are automatically canceled when the borrower dies—they are not passed on to the surviving spouse.
Private loans don’t have that protection. Some lenders will discharge the loan in the event of the borrower’s death; others won’t. In community property states, private lenders are more likely to hold you responsible. Same if you cosigned on the loan.
Bear in mind that even if your spouse’s loan is discharged, you may have to pay taxes on the amount forgiven.
If you haven’t talked about with your spouse about how much student loan debt they have, now is the time to do it. Your partner’s debt will affect your life even if you aren’t likely to be held responsible for it.
If your spouse has a lot of student debt, you might want to consider refinancing. It can significantly reduce the payments you make every month, and help lessen the financial pressure on both of you.
Neither you nor your spouse is liable for any student loan debt the other accrued before you got married unless you happened to co-sign for it; however, if one of you takes out a new loan after being married, both spouses could be.
Student 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.
If you die and have a federal student loan, no one will be responsible for your debt —not your parents, your spouse or anyone else. The servicer will discharge your loan, or a Parent PLUS loan taken in your name, once they are provided with documentation of the death.
Your spouse's wages can't be garnished for your student loan debt. Neither the federal government nor a private lender can garnish your spouse's paycheck to collect defaulted student loans — even if you live in a community property state like Arizona or Texas.
Also, regardless of how you and your spouse file your federal income tax return (jointly or separately), your loan servicer will determine your eligibility and payment amount based on your and your spouse's combined income and eligible federal student loan debt.
Any student loans you took out before marriage won't become jointly owned when you say “I do.” But when you're building your life with someone, their debt has an impact on your future plans.
If your spouse defaults on their student loan debt and you're not a cosigner, then you're not legally responsible for repaying the loan. The lender can't collect from you. However, your finances as a household are still in jeopardy.
Additional examples of unsecured debt include medical debt and most types of credit card debt. If you die with unsecured debt, repayment becomes the responsibility of your estate. Your legal estate refers to all the assets, property and money left behind by you or another deceased person when they die.
All borrowers on SAVE receive forgiveness after 20 or 25 years, depending on whether they have loans for graduate school. The benefit is based upon the original principal balance of all Federal loans borrowed to attend school, not what a borrower currently owes or the amount of an individual loan.
You can face dire financial consequences for failing to pay your student loans. Lenders will report the delinquency to the credit bureaus, which means your credit score will take a hit. Lenders could also sell the debt to a collection agency that decides to sue you in court.
If you filed a joint return and you're not responsible for debt that is subject to offset because it is owed by your spouse, you're entitled to request your portion of the refund back from the IRS.
Do private student loans go away after seven years? Private student loans don't go away unless you pay them off, but in most cases, they'll fall off your credit report after seven years.
If you live in a community property state, you probably will be responsible for debts accumulated by your spouse during the marriage. (These states are California, Texas, Arizona, New Mexico, Nevada, Washington, Idaho, Wisconsin, and Louisiana, while Alaska, South Dakota, and Tennessee make it optional.)
You'll have to recertify your family income and size each year. While an income-driven repayment plan can decrease your monthly payments, there's also an opportunity for stay-at-home parents to not make any loan payments at all. Income-driven repayment plans are based on your income as it's indicated on your taxes.
If you repay your loans under an IDR plan, any remaining balance on your student loans will be forgiven after you make a certain number of payments over 20 or 25 years—or as few as 10 years under our newest IDR plan, the Saving on a Valuable Education (SAVE) Plan.
If you and your spouse filed taxes jointly, you'll need to have made less than $250,000 combined to qualify for student loan forgiveness. If your combined income was above that threshold, neither of you will be eligible. Your 2020 and 2021 tax returns will be used as proof of income.
Student loans you and your partner bring into the marriage are considered personal debt that you each have to pay back once divorced. However, if you took out student loans during the marriage, state law will dictate how debt is divided up if you can't come to your own agreement.
However, if you default and the U.S. Department of Education cannot garnish your wages, offset your tax refund, or take your Social Security Benefits, it may sue you. If the government gets a judgment against you, then it could put a lien on your assets, including your home.
You should also change your name on your Free Application for Federal Student Aid (FAFSA®) form. If the last name on your application doesn't match the last name of your FSA ID, your FSA ID won't work properly.
Introduction: My name is Trent Wehner, I am a talented, brainy, zealous, light, funny, gleaming, attractive person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
