Marrying into Student Loan Debt

When planning a marriage, student loan debt often becomes a major concern, creating stress and anxiety for couples. If one or both partners are still in school, questions about how loans will impact the couple’s finances can add pressure to the relationship.

Adding children into the mix can further increase financial stress, especially when managing student loan debt. Although the Biden administration extended the Student Loan Payment Pause, long-term solutions for managing student loans are still under discussion in the Senate.

Understanding how student loans can affect marriage and family planning is essential for couples. Open communication and proactive financial planning can help reduce stress and protect both your financial and relationship health.

Student Loans and Family Planning 

According to Victoria J. Haneman of the Creighton University School of Law, rising student loan debt is contributing to delays in marriage. Research shows the average age of marriage has increased from 23 to 27 for women and from 26 to 29 for men.

Haneman notes that the average student loan balance grew from $29,000 in 2013 to $37,172 in 2016. As debt levels rise, many young adults are postponing major life decisions. A 2014 study found that the number of Millennials expected to marry before age 40 reached a historic low. Financial concerns play a major role, as marriage often involves combining finances, including property, credit scores, healthcare costs, and childcare expenses. For some couples, adding student loan debt to these responsibilities can feel overwhelming.

Education trends related to marriage have also shifted. In the past, women with a high school education or less were more likely to marry. However, this pattern has reversed. Allison Linn of CNBC reports that 60% of college-educated women were married as of 2013. These women account for 60% of births among married couples and are also less likely to have multiple children compared to women whose education ended with a high school diploma or equivalent.

Who Is Responsible?

Fortunately, student loan debt taken out before marriage is considered individual property and only affects the borrower’s credit score. Loans do not transfer to a spouse after marriage unless both partners co-sign the debt, making it a shared responsibility. Co-signing can help pay off the debt faster, but it may not be advantageous for couples where both partners already have loans.

It’s important to note that student loan debt taken out during marriage may be considered community property, potentially affecting both spouses’ finances. Understanding these distinctions can help couples manage debt and protect their credit while planning for the future.

Learn more about community property here.

 

 

Types of Payments and Financial Counseling

Students of any age or relationship status should avoid taking on student loan debt that exceeds the expected annual salary of their future career. Borrowing responsibly can help prevent long-term financial stress after graduation.

Financial counseling for students can provide valuable guidance on topics such as personal and joint credit, student loan repayment options, debt forgiveness programs, payment plans, and family financial planning. Learning these skills early can help students better manage their finances while in school and after they graduate.

Research shows that early financial counseling can reduce financial stress and improve academic success. However, timing is critical. Studies suggest that students who wait too long to enroll in a financial counseling program or speak with a financial advisor are more likely to leave college before completing their degree.

Financial guidance is especially important for students who are funding their own education, carrying a high level of student loan debt, or experiencing significant financial stress. It can also be particularly helpful for immigrants and first-generation college students, who may have fewer resources or less familiarity with the financial aid system.

 

 

Affordable Repayment Plans

Most borrowers use the standard 10-year student loan repayment plan, which requires consistent monthly payments over ten years. However, income-driven repayment (IDR) plans offer flexibility by basing monthly payments on annual income.

For married couples, IDR plans can use either individual or joint income. If couples file a federal tax return jointly, the repayment amount will be calculated based on combined income. This method works best when only one spouse has student loan debt. If both partners have loans, payments are based on total combined debt, which can extend the repayment period.

Understanding the differences between repayment plans can help couples manage debt efficiently and minimize financial stress.

If you are interested in learning more about IDR plans for couples, look here.

 

Conclusion

Student loan debt is one of the most common types of debt in the United States and can create significant stress for couples planning to advance their relationships and combine their finances. Financial counseling and understanding state laws can help couples navigate potential challenges caused by student loan debt.

Choosing an existing student loan repayment plan or customizing a plan based on you and your spouse’s annual income can help pay off debt efficiently while minimizing interest and protecting your credit score. In today’s climate, where marriage is often considered a financial luxury, understanding how student loans affect both financial and relationship stability is more important than ever.

Couples struggling with student loan debt have options to manage their loans and still move forward with marriage. Educating yourself and seeking guidance can reduce stress and support both your financial and relationship goals.