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. Unfortunately, it doesn’t matter.
Can a spouse be held responsible for student loan debt?
If you cosigned on your spouse’s student loans at any time, whether they’re federal loans, private loans, or refinanced loans, that means you are legally liable for those student loans. … If your spouse dies or is otherwise unable to pay back their loans, the lender will look to you to pay them back.
Does my husband’s income affect student loan repayment?
Your spouse’s income is included in calculating monthly payments even if you file separate tax returns. However, a borrower may request that only his/her income be included if the borrower certifies that s/he is separated from his/her spouse or is unable to reasonably access the spouse’s income information.
Can my husband’s income tax be garnished for my defaulted student loan?
Both your tax refunds could be garnished
And if you’re filing jointly with a spouse, both of you could lose your tax refund to a defaulted student loan. … Note that the IRS should send you a letter of notification if it intends to intercept your tax refund — but at that point, it could be too late to save your return.
Can a spouse’s wages be garnished for the other’s debt?
Fortunately, most states are not community property states so your spouse cannot be pursued for your debts. … And since wages are considered community property if you have unpaid debts that result in judgments against you, your spouses’ wages can be garnished also.
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).
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.
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.
Will I get a stimulus check if I owe student loans?
The next popular question is, “Can my stimulus check be garnished for unpaid debts?” The answer to this is yes AND no. The new checks cannot be garnished to pay back taxes, child support, or outstanding student loans.
Will the IRS take my refund for student loans during Covid 19?
The original coronavirus relief bill stopped tax refunds from being taken for defaulted student loans if you filed your return after March 13, 2020. Refunds being processed as of that date were also protected. … Relief checks issued due to the coronavirus pandemic also aren’t being taken for defaulted federal loans.
Will student loans take my 2021 tax refund?
Will my federal student loan debt be collected if I’ve defaulted? Debt collection is suspended for borrowers who have defaulted on federal student loan debt through September 30, 2021. This means collectors will not take actions to collect payment, such as deducting from a tax refund or garnishing wages.