Student loan debt & marriage
Has anyone here avoided or postponed getting married to someone because of their student loan debt? My bf has over $300k in debt and is currently in school for his MBA. Now that we’re getting older and more serious I’ve been thinking about it more frequently. Any advice on tackling that kind of debt or general relationship advice on the topic will do. Also, has anyone ever settled their defaulted student loan debt? He gets offers in the mail to settle for $30k cash. I’m curious how legit that method is.
$300k all student loan? Does that include mortgage? That’s a lot of debt just for school, imho.
No it’s not. Undergrad alone just on tuition can run you 250+. Then there’s living expenses and shit like that. Might have taken an extra year too
$300k includes principle, interest, & penalties for defaulting.
If you're getting offers for settlement for less and your bf never defaulted, it's for sure fraud. Those offers only happen after debt was sold, and debt is only sold when it's sent to collection. Marry him, but don't buy big things in his name. It should be your house and your car.
He has defaulted. He’s been out of school for about 9 yrs. I just came into the picture 3 yrs ago.
If they can prove they actually own the loan and want to sell it to you for 10 cents on the dollar, you should totally take it. You really have to make sure, from both the loan originator and the current loan owner. You might want a lawyer for this one, to be safe.
What is waiting another year going to change? Is he going to pay that off? Also, keep in mind, in some states (ca for sure), the debt is his. If you get divorced, it goes with him. So, not really sure what you’re asking here, to break up w/ him over his debt vs staying together?
Kids won’t fix the marriage penalty 😊
Kids won't change the tax implications much, but they would be a reason to get legally married.
You can NEVER erase student loan debt from your credit report until it's paid successfully. I wouldn't marry, they will go after you too. This is destroying his credit. He needs to remediate those those loans and get himself back into good graces with regards to his lenders and credit reports. This is one type of loan that never goes away.
Credit isn't all that important though, particularly if your spouse has great credit
In community property state it's important. Any assets you own together can be targeted in judgement.
Unless he re-finances the loans and you sign as a co-signer or co-borrower, you aren’t legally responsible for his debt. If you’re waiting to get married because you’re waiting for the default to fall off his credit report, that’s definitely something you ought to consider, especially if you’re looking to get a mortgage or something soon. I haven’t looked into it in too much detail, but I think that there might be some implication of your spouse’s credit report on your mortgage application approval/rate, even if you’re only applying for the loan in your name and your credit is fine. Other, more adulty blinders might be able to speak more accurately and clearly to this.
Seriously. Don’t get swept into the legal part of marriage because “that’s how it’s done”. There are other ways. Have a small, financially responsible wedding WITHOUT a marriage license. (It’s legal to do this, just not legally binding). There is nothing wrong with cohabiting. You can separately make arrangements to have the same rights as a legal wife for important medical and legal decisions should the need arise. Enter into this life with your boyfriend in a way that makes you feel safe, without doubt, and 100% at ease.
Don’t marry them unless there’s a clear plan to remove the debt. Since the debt has already defaulted before, you also need to know if the situation that led to that is rectified. Failing to do this will put incredible stress on the relationship that you won’t feel until you’re tied to them for life. Had 150k+ of debt (90k when I met my wife) and we talked about how we would tackle it and when we expected to clear it off. Took a lot of anxiety out of other things needed in our life.
Student debt is not responsibility of the spouse if incurred before marriage...
Is there a reason to rush? If not you guys can wait for another year. Please don't mention you are doing that because of his debt. Make up an excuse.