Consolidating student loans with spouse
If you’re considering consolidating your loans, here are some downsides you should be aware of.#1 Increased Interest Payments – When federal student loans are consolidated, the interest rates are weighted according to loan balances and then rounded up by one-eighth of a percent.
What happens thus is that you will be effectively paying a lower interest rate on what were higher interest loans and vice versa.
It seemed like a good idea to someone who clearly didn’t realize that sometimes a marriage simply doesn’t work out.
Unfortunately, there’s no way to separate a Federal Joint Consolidation Loan.
If the married couple splits up, they both remain 100% legally liable to repay the debt.
I’ve seen a variety of divorce decrees attempt to deal with these loans, mostly in an idealistic way.
Your interest rate will be based on the type of degree you have and the higher credit score between the two applicants, so when married couples join forces and refinance together, they may benefit from an even lower interest rate.
After both partners submit their portion of the application, a Purefy representative will follow up with an update on the application status.
Even if the student loan debt isn't yours, a portion of your combined income will go toward paying it off.Spouses are not technically responsible for their partners' student loans.Your spouse's student loan debt does not affect your personal credit, or if your spouse dies, you are not obliged to pay off the loan.Loans that are not eligible for consolidation include state or private loans that are not federally guaranteed.Although all of these different loans may be consolidated, you must have at least one outstanding FFEL or Direct Loan to obtain a Direct Consolidation Loan.
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If you are making more than one student loan payment each month for your various types of loans, you may be tempted to consolidate to get down to one payment each month.