Spousal student loan consolidation is something you might be considering, or perhaps it’s something you’re keen to get out of.Either way, there are some key details about this particular loan situation that are important to know. I’m going to briefly outline what spousal student loan consolidation is, why you might want to do it, why you might want to avoid it, and ways to change it if you have this kind of loan.
If some or all of these are true, consolidating your loans into a single loan might seem attractive. However, you might want to consider refinancing your loans separately before you decide on a spousal consolidation loan. Only if your combined credit scores and incomes would give you the most favorable loan terms and savings on interest should you consider a spousal consolidation loan.A spousal consolidation loan locks you into a financial obligation with your spouse that may be very difficult or costly to get out of, especially if you decide to get divorced. If you have a true joint loan, both you and your spouse are equal borrowers in this debt and are equally responsible, no matter how much of the debt was originally yours.You cannot release the name of someone on a joint loan. If you and your spouse have a loan where one of you co-signed, you can theoretically release a co-signer, but lenders are not always willing to do this. The main drawback is the unpredictable nature of your financial situation and your relationship. If one or both change, you will need to negotiate with your spouse on how to repay this combined debt.