When a married couple borrows student loans, the loans are considered to be the joint responsibility of the spouses if they lived in a community property state. When you borrow student loans before a marriage or after legal separation or divorce, they remain the borrower’s responsibility.
Are student loans considered community property?
In most community property states, a student loan taken out by either party during marriage is community property, meaning that both spouses are equally responsible to repay the debt.
Is spouse responsible for student loans after 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.
What happens to student loans when you divorce?
If you already had student loans when you got married, those would remain your individual responsibility after the divorce, unless both parties agree to a different arrangement. … In an equitable distribution state, the judge in the divorce court will decide who is responsible for repaying the student loans.
Are you responsible for your spouse’s student loans?
Is a Spouse Responsible for Student Loans Incurred After Marriage? Whether you’re responsible for student loans your spouse took out after you got married is dependent on where you live. In most states, debt taken out during the marriage is the responsibility only of the person who is on the loan agreement.
Does my spouse have to pay my student loans if I die?
If you die, your federal student loans will be discharged, meaning no further payments will be required. Your parent, spouse or another person you appoint will need to submit proof of death to your loan servicer. This means an original or copy of the death certificate.
Should I pay off my wife’s 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 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 go away when you die?
If you die, then your federal student loans will be discharged after the required proof of death is submitted.
What debts are included in divorce?
All community debt and liabilities are a necessary part of your divorce settlement. Debts include credit cards, car loans, mortgages, lines of credit, and other consumer loans. Personal guarantees made for business debts and lines of credit also need to be addressed.
Can a spouse’s wages be garnished for 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. Unfortunately, it doesn’t matter.
Is my spouse’s debt my responsibility?
Generally, one is only liable for their spouse’s debts if the obligation is in both names. … But, unlike a common law state, in community property states all debts incurred by either spouse during the marriage are shared equally, regardless of whose name is on the account.
Who is responsible for student debt?
As a federal student loan borrower, you are responsible for the repayment of your loan. You remain responsible for repaying your loan regardless of whether you graduate from college or feel dissatisfied with the education you received.