Come to think about it. Both your student debt and marriage are long term commitments and needless to say – they are inevitably connected to each other. As per the National Foundation for Credit Counseling, around 37% of the participants admitted that they wouldn’t tie the knot unless their student loans are completely paid off. Around 46% said that they would marry someone in debt and then would try to pay the debt off together.
Are you in the process of paying off your student debts at present? Are you taking quick online loans often to pay off EMIs? Whatever, you’re doing now, do remember that your post-marriage finance is going to be way different. So if you have decided to tie the knot while dealing with your student debt, then do make sure that you are actually keeping a few important factors in mind. Documented below are a few ideas.
Know what will happen to your income-driven plans
Do understand that your income-driven plan will change once you get married. If you are planning to file your taxes jointly as married partners then your partner’s income will be taken into account as well – resulting in your Income-Based Repayment bill going right through the roof. So, that means that even if your marriage might as well bring about some relief on your taxes, it can adversely affect your student loans. If you are filing taxes as “married filing separately”, then you can obtain benefits on your student loan if you’re on an income-driven repayment plan.
Communicate with your partner
That’s vital for the success of your relationship. It is very important for both the partners to ensure that they are actually disclosing even the smallest of their debt details in a bid to figure out the total debt they’re bringing to the table. Remember, when it comes to talking about finances, your debts should be revealed right after your respective incomes.
It has also been wisely pointed out that at times when only one partner has student loan debt, then it might end up causing friction in their relationship. On the other hand, when both of you have student loans, you might find it extremely difficult to fulfill financial milestones like (buying a home) right when you want them to be fulfilled. So, do ensure that you are talking out possibilities thoroughly.
Figure out how your budget will change
It is very important on your end to ensure that you are drawing a thorough budget plan before getting married. By now, you must have understood that your finances will undergo sea changes after you’re married. Instead of finding possible loopholes later and bickering over the same make sure you are actually discussing all the financial aspects before you are married.
Prioritize your marriage cash flow plan and financial commitment thoroughly. Hopefully, this particular primer will help you significantly when it comes to making informed decisions regarding your post marriage finances. Your student loans do have the potential to impact your partnership. Don’t let that happen!