Stand and deliver! Your Money or Your Wife('s)!
August 25, 2012 3:18 PM Subscribe
Should I pay off my wife's student loans? Should we file our taxes jointly? 60K in student debt!
posted by anonymous to Work & Money (7 answers total) 4 users marked this as a favorite
I recently got married and we have been talking about paying off some of my wife's student loans. She has Perkins and Direct Loans(20k) from undergrad and is currently working on an MLS so she also has some Direct(20k) and Plus loans (20k) from her grad program.
Specifically, I was thinking about paying off her Plus loan since it has an interest rate of 7.8% and it accrues interest while she's in school. She graduates May of next year.
I make 70k a year before taxes (she currently makes 4k with her part-time job), and we live in a metropolitan area, so about 18k goes to rent per year. I have a good amount of savings, but we would like to buy a car and a house at some point.
If I were to pay off some of her loans would there be tax implications for us?
If I am marked as an authorized payer, would my income be considered a factor in the future repayment of her loans?
To clarify, if she's unfortunate and fails to find employment after her graduate program, would she have basis to apply for forbearance or switch to a lower rate plan or would my stable job mean I would end up having to spend my income for her loans? Is there a way to prevent this?
If we file our taxes jointly, will this effect her loans?
Ideally she would like to repay as much of her loans on her own. She is afraid of putting me in a position of joint responsibility.