How Getting Married Affects Your Student Loan Debt

How Getting Married Affects Your Student Loan Debt

After saying, “I do,” it is time to have the conversation about your student loan debt. If you and your loved one are both graduates, odds are that you both have student loans. Here are a few tips that newlyweds can take to manage their student loan debt.

File Jointly or Separately

When tax time comes around, you can choose to file jointly or separately. If you decide to file jointly, this could mean that your tax bracket is often lower, and you can qualify to deduct your student loan interest on your tax return. You will also have easier access to certain tax credits, such as the child tax credit and dependent care credit. But, if you chose to file separately, this could lead you to a smaller student loan payment. Student loan repayment plans rely largely on your income to determine your minimum monthly payment.

After knowing the advantages and disadvantages, it is important to pick the option that is right for you. After you do that, estimate your federal and state taxes. There are several online estimator tools that will help you with this.

Tackle Your Loans Together

When it comes to you and your spouse’s student loans, you should tackle them together. You both should sit down and talk about your short and long-term financial objectives. After you do this, you should calculate the amount of both of your student loans and decide on a strategy for how you will eliminate your student debt. One option is to focus on paying off the loans that have the highest interest rate first.

Now that you have calculated your loans and decided on a plan, look for opportunities to optimize. If you have additional money, make extra payments. While interest increases over time, it is always beneficial to pay off your loans faster. Overall, it is important to pick the best option for you and your spouse and tackle your student loans together.