5 months ago
Without a doubt, student loans cause so many problems! So, there’s no wonder that many modern college and university students are looking for all possible ways to avoid paying their educational debts. Some young people are too creative and here is what the Typical Student team will share with you today.
The question is: does marriage affects your student loans? And the answer is: yep, it does! Stay tuned to read more about it! Here are 3 main reasons how your student debts can depend on marriage.
#1 Your Monthly Payment Could Increase
To start with, keep in mind that after marriage your monthly student loan payment could increase. In case you use the Revised Pay As You Earn plan, your payments will be based on their combined adjusted gross income and loan debt. Usually, it means a higher monthly payment.
On the other hand, Pay As You Earn, Income-Based Repayment. and Income-Contingent Repayment allows you to choose the tax status “married filing separately” pay based on your individual incomes.
#2 Your Significant Other Can Chip In On Payments
Did you and your love want to help each other to pay student loans? In this case, we recommend you to create a written agreement that will outline the terms. Although it won’t be an official document without a lawyer’s help, the agreement will still help you in the future in case of a divorce.
#3 You May Lose The Student Loan Interest Deduction
To make a long story short, student loan interest deduction allows borrowers to deduct up to $2,500 of student loan interest paid in the previous tax year from your taxable income.
Keep up with the Typical Student daily email