First comes love, then comes marriage, then comes…reassessing you and your spouse’s student loan debt. It’s not the most romantic process, but it’s paramount, particularly when considering that the majority of college graduates carry student loan debt.
Marriage can impact student loan debt in a few ways, which is why it’s critical to establish answers to the following questions with your partner:
- What type(s) of loan did you take out?
- What are the statuses and payment histories of the loans?
- What are the loan balances?
- What are the monthly payments?
- What are your student loan repayment plans?
- Know the answers to these questions before diving into the finer print — which is extensive.
You Can Pay Back Your Loan in Different Ways
You and your new spouse have several ways to pay back your federal loans. You can do the following:
- Make monthly payments based upon how much you owe and how long you’ll be paying off your loans
- Make income-driven payments based on how much money you make collectively and your family size
How You File Taxes Can Change Your Payments
Spouses have a choice between filing their income taxes jointly or separately. When deciding which is right for you, consider that, if you have an income-driven repayment plan, the Federal government will:
- Use your joint income if you file jointly
- Reduce your payments in light of your spouse’s student loan debt if you file jointly
- Base payments on only your income if you file taxes separately — unless you are in the Revised Pay As You Earn plan, as discussed below
