Student loans and marriage

[IcezMan_IcezLady 582]

so, a prenup wont work for me since i wont bring anything to the marriage since i dont have anything in the usa, in fact, i havent arrived yet.

I dont know what to do, I dont want us to have a debt for 10 or 20 years. I would love to buy a house someday, and having this loan will be already a problem, and i dont know if we will able to get the house. also, he told me i could study there, thats why i didnt do it here, where is 100% free, and now,i see i wont be able to study up there either bc i dont want more loans to pay. im really sad for this last thing, bc studying was something i really wanted to do.

anyway, i was thinking, and i dont know if its ok, i ws thinking of once i start working, use 100% of my salary to pay his loan, and we can live from his salary. doing that will help us to finish the loan sooner, so we wont have debts, and maybe later we could think of buying a house, having kids, etc.. although i know it will be late for us, im almost 36, and he's 44

you are worrying too much.

Most Americans are in debt. It doesn't mean your life is over. He might make more money with that degree and pay off his loan.

Even Obama, just recently finished paying off his students loan. There are some congressmen who still owe on student's loan.

The two of just have to manage your finances so that you can live a comfortable live while making the loan payments.

Student's loan is not the end of the world.

[aaron2020 11,651]

The student loans allowed him to get an education. With that education, he will get a better paying job. A job that will contribute to your household's checking account. If not for the student loans, he would not bring the money that you will rely on to live in the US. You will benefit from his student debts.

It's very generous to use 100% of "your" salary to pay "his" student loans. As you stated, you are bringing nothing to the marriage. He is bringing an MBA that will allow him to earn more than a high school graduate. "His" earnings will be used to provide a roof over your head and put food on your table.

Edited May 25, 2015 by aaron2020

[VOL 425]

Pre nup will keep your credit score and his credit score separate.

IF he files for bankruptcy then it will not effect your score......

[aaron2020 11,651]

Pre nup will keep your credit score and his credit score separate.

IF he files for bankruptcy then it will not effect your score......

Only speaking about credit scores.

His score will always be his alone. Her score will always her alone. That has nothing to do with a prenup.

A prenup by itself is not going to keep his and her credit scores separate if they ever become co-borrowers, co-owners, or co-taxpayers.

Would only be true if they kept everything separate. Never be co-borrowers. Never be co-owners. Never file a joint tax return.

If both are co-borrowers or co-owners, then it would affect them both in case of default, late payments, etc. It's both if they comingle. It would affect his credit score and her credit score.

Defaulting on the student loans would be his only even if there is no prenup. The debt is legally his. Her name is not attached.

Edited May 25, 2015 by aaron2020

[VOL 425]

Only speaking about credit scores.

His score will always be his alone. Her score will always her alone. That has nothing to do with a prenup.

A prenup by itself is not going to keep his and her credit scores separate if they ever become co-borrowers, co-owners, or co-taxpayers.

Would only be true if they kept everything separate. Never be co-borrowers. Never be co-owners. Never file a joint tax return.

If both are co-borrowers or co-owners, then it would affect them both in case of default, late payments, etc. It's both if they comingle. It would affect his credit score and her credit score.

Defaulting on the student loans would be his only even if there is no prenup. The debt is legally his. Her name is not attached.

Exactly, The poster would be wise to keep everything separate. Don't co mingle money and do a pre nup.

Edited May 25, 2015 by VOL

[diane79 14]

you are worrying too much.

Most Americans are in debt. It doesn't mean your life is over. He might make more money with that degree and pay off his loan.

Even Obama, just recently finished paying off his students loan. There are some congressmen who still owe on student's loan.

The two of just have to manage your finances so that you can live a comfortable live while making the loan payments.

Student's loan is not the end of the world.

Yes. I totally agree with you. I've been asking and I have found out americans live like this. It's just I am not used to live this way, also 80K in debts is A LOT of money for us. I (and i could say, all pplin this part of the wordl) have been raised with the idea that debts are bad (well, they are when they come from frivolous expenses) and we must avoid them as much as we can.

I guess I'll have to get used to the idea and relax a bit.

[diane79 14]

The student loans allowed him to get an education. With that education, he will get a better paying job. A job that will contribute to your household's checking account. If not for the student loans, he would not bring the money that you will rely on to live in the US. You will benefit from his student debts.

It's very generous to use 100% of "your" salary to pay "his" student loans. As you stated, you are bringing nothing to the marriage. He is bringing an MBA that will allow him to earn more than a high school graduate. "His" earnings will be used to provide a roof over your head and put food on your table.

I know, it's just i freaked out with such big debt. at least for us it is. As i stated, i guess i have to get used to the idea, and also, i feel i have to learn so much about USA and its ppl. they r totally different than us, and thats why i didnt understad how someone can get 80K in loans for studies, bc i live in a country where studies are 100% free and only rich ppl go to paid schools.

[Merrytooth 5,748]

I know, it's just i freaked out with such big debt. at least for us it is. As i stated, i guess i have to get used to the idea, and also, i feel i have to learn so much about USA and its ppl. they r totally different than us, and thats why i didnt understad how someone can get 80K in loans for studies, bc i live in a country where studies are 100% free and only rich ppl go to paid schools.

Wait till you use US health care. You will get a shock seeing the medical bills if you have no health insurance.

[diane79 14]

Wait till you use US health care. You will get a shock seeing the medical bills if you have no health insurance.

Lol. yes, my fiance has already awared me about that.. the same, here is almost free... lol...

but, well, i will have to get used to the whole new life.

[novedsac 355]

Yes. I totally agree with you. I've been asking and I have found out americans live like this. It's just I am not used to live this way, also 80K in debts is A LOT of money for us. I (and i could say, all pplin this part of the wordl) have been raised with the idea that debts are bad (well, they are when they come from frivolous expenses) and we must avoid them as much as we can.

I guess I'll have to get used to the idea and relax a bit.

Just because many Americans live with debt, revolving or otherwise, doesn't mean it is something to aspire to. A willingness to live within your means and save for the future is a good thing. If you're working, I would suggest that you put extra money towards your education, either part-time whilst working or save for a few years for full-time study. Then, after you've achieved that goal, put extra income towards paying down debts. This would help secure your opportunities for the future in the event that your marriage encounters a problem; paying off his student loan really only helps him in that event.

Student loan debt does come with some advantages, such as excluding interest paid during the year from your income when figuring your AGI for tax purposes, subject to earnings thresholds. You cannot do this with other kinds of debts; though mortgage debt can be deducted from income if requirements are met. And student loan debt often, but not always, comes with an advantageous interest rate.

[NikLR 13,220]

If you think about it, buying a house is a debt. Unless you pay for it fully in cash, you owe a mortgage. Having this student loan won't prevent him from buying a house or having kids. You just have to pay attention and manage your money.

His student loans have no negative affect on your visa process.

[Morningmist 76]

My husband has a lot of student debt and credit card debt. So far we have kept most of our debts separate and only have a joint account that has enough money to pay our joint expenses. It didn't affect AOS, but the jury is out there about ROC. The reason we did this is because I didn't want his creditors to come after my meager assets and vice versa. So far he has paid down his student loans for the last 2 years and it looks like he has 8 more years to go.

You can't live in this country and not be in debt. After two years of marriage, I think I owe more money than he does after buying the house and a new car.

Just to give you some perspective, I had a $30,000 student loan debt which I paid back in 3 years with a $50K salary. It's doable, if you don't spend frivolously. I didn't eat out much or spend too much on clothes and shoes. With his MBA your husband may as well get rid of his loan in 3 years too.

[tuckin14 58]

His student loans will not affect your immigration except possibly in one way. If you title assets in your name, rather than his, to avoid possible attachment by creditors, USCIS will see that you have not comingled your assets. However:

a) I assume you are planning to pay off his loans rather than default on them.

b) I would hope his MBA leads to a better paying job

c) It's probably not worth manipulating assets because it's very difficult to discharge student loans in bankruptcy anyway

d) You can still have joint credit card and checking accounts. It a creditor attaches your checking account, I assume you're not going to have more than a few thousand in it anyway.

e) It's possible that a prenup could "protect" you in this way. Say that you got married and he owed $80,000 in credit card debt. In the first year that you are married you jointly earn enough to pay off this debt, and then you separate. It could be argued that he "gained" $80,000 of debt paid off from marital assets and you're entitled to $40,000 that you would have had if you hadn't paid off his pre-marital loans. But frankly, I think it would be selfish to say that the money he earns as a result of getting the MBA belongs to you both, but the debt incurred is his alone.

In the long run, you should be happy that he invested his time and money to increase his earnings potential.

[diane79 14]

thanks you guy for ur help. i was really worried, i feel more at ease, i havent decided about the prenup yet, it seems i wont help me much since i dont bring anything with me

[usmsbow 795]

Student loan debt does come with some advantages, such as excluding interest paid during the year from your income when figuring your AGI for tax purposes, subject to earnings thresholds. You cannot do this with other kinds of debts; though mortgage debt can be deducted from income if requirements are met. And student loan debt often, but not always, comes with an advantageous interest rate.

1. The deduction will be helpful for the OP's fiance since his student loans are fairly high, but if his income is 6 figures, he probably will not get a deduction. It steeply goes down once your AGI goes above 80k/year.

2. Advantageous? Ha, my stafford loan has a rate of 6.625% and I'm stuck at that rate. I think the current rate for stafford grad loans is a bit over 3.6%. Comparable to a mortgage basically.

Anyway, OP- if your fiance has a job that earns equal or more than his student loan, it shouldn't be a problem (so a job that pays $80K+ a year). That's the general rule of thumb when it comes to student loan debt.