Am I Responsible for My Spouse’s Student Loan Debt? (2024)

FAQs

Am I Responsible for My Spouse’s Student Loan Debt? ›

Marriage can affect your student loans in a number of ways, but thankfully, you won't be liable for your spouse's loans as long as they took them out before marriage. Further, any student debt that you bring into a marriage remains solely your debt.

You can't inherit student loan debt

In general, student loan debt is not inheritable and does not transfer to a spouse, child, or other loved one upon the borrower's death. The only exception is if the loan was cosigned. In that case, the cosigner may find themselves responsible for repaying what's left.

First, it's important to understand the difference between individual debt and joint debt. If your spouse has debt in their name only, then the creditor cannot garnish your wages.

Generally, you're not responsible for your spouse's student loan debt unless you co-signed for it or opened a joint credit card account before you got married. However, if one of you takes out a new loan after being married, both spouses could be responsible.

If you're married, you and your spouse's income and student loan debt will be considered to determine your payment only if you file your taxes jointly. If you file your taxes separately, only your information is used to determine your payment.

California is one of the few states that follow community property laws, which contend that all assets and debts acquired by either spouse during the marriage are considered "community property," subject to equal division upon divorce.

Marital debt, which includes student loans taken out after saying “I do,” is often seen as a shared investment in the couple's future. This type of debt is typically considered to have been incurred for the mutual benefit of the couple and is thus subject to division upon divorce.

If you file jointly and your spouse has a debt (this can be a federal, state income tax, child support, or spousal support debt) the IRS can apply your refund to one of these debts, which is known as an “offset.” The agency can also take a collection action against you for the tax debt you and your spouse owe, such as ...

If you and your spouse filed taxes jointly, you'll need to have made less than $250,000 combined to qualify for student loan forgiveness. If your combined income was above that threshold, neither of you will be eligible. Your 2020 and 2021 tax returns will be used as proof of income.

Lenders can garnish your bank account to recover student loan debt, and they can do it in different ways depending on whether your student loans are federal or private.

Does your spouse's student debt become yours? ›

Your spouse isn't automatically responsible for your student loans when you get married, but marriage can impact your monthly payments and eligibility for forgiveness programs. Filing taxes jointly while on an IDR plan may increase your student loan payments, but it can also provide tax benefits.

If debt is incurred in the course of the marriage, it could be considered a community debt for the benefit of the marriage for which you would be held liable too. However, if you are separated from your spouse and they then proceed to rack up debt, you wouldn't necessarily be held responsible for such debt.

When the time comes to start making payments, only the student is obligated to repay these loans — not the parents. In fact, there's no co-signer. If the student defaults on a federal student loan, it will affect the student's credit and won't be reported on the parent's credit history.

Federal student debt is discharged upon the death of the borrower. Many private lenders will also cancel debt when the borrower dies, but policies vary by lender. Loved ones or spouses can't inherit student loan debt.

Student debt you bring into a marriage typically remains your own, but loans taken out while married can be subject to state property rules in divorce. And if one spouse co-signs the other's private student loan, he or she is legally bound to the loan unless you can obtain a co-signer release from the lender.

In conclusion, your spouse's wages can't be garnished for your student loan debt. The only exception is if they cosigned your private loan application. Even then, the lender would need to sue them and get a court judgment first before they can garnish their wages.

A federal student loan is forgiven or discharged when the borrower dies. Survivors will need to provide proof of the borrower's death to the servicer. Many private lenders also forgive student debt when the borrower dies, although policies will vary by lender.

Those with a federal student loan don't need to worry — your loan balance will be discharged (or wiped away) upon death. However, if you pass away with a private student loan, your cosigner or spouse may still be on the hook.

But if you stop making payments and your loans default, a student loan lawsuit could be filed against you. If that happens and the court enters judgment against you, then any funds in your bank account — including your inheritance — could be levied or taken to repay the debt.