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Thoughts on combining Student Loans with my wife's.

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Anonymous
Not applicable

Thoughts on combining Student Loans with my wife's.

First, is it even possible to combine my loans with hers? My balanace is $35k and current. My wifes are in deferment until June with $24k.

 

If it is possible, is there any added benefit to combining them? Or would it be best to keep them seperate for variour reason. Those reason would include potential divorce (not planning), higher interest charges, etc.

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SCF
Valued Contributor

Re: Thoughts on combining Student Loans with my wife's.

What type of loans are these?  If they are federal, you will not be able to combine them with a federal consolidation loans.  They used to do joint consolidation loans for spouses, but those have not been available for quite some time.  There is no real reason to want to combine them if they are federal, any income-driven repayment plans will take into consideration your household's total loan balance/payment unless you specifically choose IBR and file your taxes Married Filing Separately to have only one spouse's income considered for repayment on their loans.

 

If they are private, you might be able to borrow jointly to refinance them together, but the only reason you would want to is if it could give you a substantially better overall interest rate than you could get on your own.

 

Right now, these debts are yours individually, and would stay that way if you divorced (unless you have a pre-nuptial agreement, or perhaps if you live in a community property state).  If you refinance them together, they would be a shared debt if you divorced, and have to be settled through that process.

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