Home
Log in / Sign Up
    Private Messages   Advanced Search   Rules   New User Guide   FAQ   Advertise   Contact Us  
Forum -> Household Management -> Finances
Paying off husband's student loans



Post new topic   Reply to topic View latest: 24h 48h 72h

amother
Mauve


 

Post Sun, Dec 09 2018, 2:12 am
My husband and I both pursued degrees while we were married. My husband's loans are for more than $100,000 with interest rate around 7%. After all paid off with interest it will be over $225,000. I recently inherited money which could cover almost the total amount. My issue is this is ALL of our savings. We make just enough to pay our bills but are not putting money away. I also wonder if Gd forbid we divorce one day I will never have any savings. On the other hand he did go to school while we were married. It's not like it was pre marriage and I obviously benefit from the income from this degree. Thoughts?
Back to top

amother
Aubergine


 

Post Sun, Dec 09 2018, 2:25 am
My immediate thought is that you should pay it all off, now, but make a firm decision to put whatever you were putting towards the loans now into savings. IY"H you will come out well ahead.
Back to top

amother
Pink


 

Post Sun, Dec 09 2018, 2:31 am
Go talk to a lawyer about the implications.
I dont know what country you are ftom, but where I live an inheritance belongs solely to the spouse who inherited, until it is put in the common pot. Once you mix it in, it's gone.
This is so tricky, because keeping the money aside might send a message that you are not 100% confident in the marriage.
But personally, I would buy an investment house or apartment if there are places at such prices in your country. I would then use the rent from that place to cover most of the interest from the loan, and I would continue to pay the loan from my salary as originally intended.
That way, you still have a solid separate investment 10 or 20 years down the line.
Back to top

amother
Wine


 

Post Sun, Dec 09 2018, 7:06 am
Im not so knowledgable in this area, but every year that I paid iff my student loans, I got a tax break...def check with your accountant
Back to top

amother
Lemon


 

Post Sun, Dec 09 2018, 8:37 am
It is easier to keep a big pile of money than to save a big pile of money. Even with the interest, you are better off keeping it whole.
Back to top

zaq




 
 
    
 

Post Sun, Dec 09 2018, 11:50 am
Don't ask imamother. Ask a financial planner.
Back to top

amother
Yellow


 

Post Sun, Dec 09 2018, 12:39 pm
If your husband has a good job with a relatively high stable income, he should look into whether it would make sense to refinance with SoFi or a similar company who would probably offer a much lower fixed rate.

Evaluate the terms of any refinancing carefully though and consider what protections and repayment options you might be giving up by going from government loans to a private lender.
Back to top

amother
Cyan


 

Post Sun, Dec 09 2018, 12:44 pm
amother wrote:
My husband and I both pursued degrees while we were married. My husband's loans are for more than $100,000 with interest rate around 7%. After all paid off with interest it will be over $225,000. I recently inherited money which could cover almost the total amount. My issue is this is ALL of our savings. We make just enough to pay our bills but are not putting money away. I also wonder if Gd forbid we divorce one day I will never have any savings. On the other hand he did go to school while we were married. It's not like it was pre marriage and I obviously benefit from the income from this degree. Thoughts?


Have a rational discussion with your husband about why you want to save some of this inheritance as a personal safety-net. Some but not all.
Back to top

amother
Navy


 

Post Sun, Dec 09 2018, 1:14 pm
Student loans that I know of (my husband’s law degree) are relatively low interest and I would never pay them off with the money.

I would speak to a fianancial advisor etc and figure out a way to invest it with the least risk possible (probably in a few different things) this would boost income and give me more money to pay off loans.

I would also ask someone smarter than me to figure out tax implications etc.
Back to top

amother
Mauve


 

Post Sun, Dec 09 2018, 7:46 pm
I wasn't asking from a financial point of view but more of an emotional side. If roles were reversed how would you feel about it? I worry so much about the future that I just sit on this savings or maybe cause we aren't saving more. Is it foolish to use all of my savings to pay off husbands debt or is it wise to keep it for myself.
Back to top

amother
Fuchsia


 

Post Sun, Dec 09 2018, 7:50 pm
amother wrote:
I wasn't asking from a financial point of view but more of an emotional side. If roles were reversed how would you feel about it? I worry so much about the future that I just sit on this savings or maybe cause we aren't saving more. Is it foolish to use all of my savings to pay off husbands debt or is it wise to keep it for myself.


From an emotional standpoint, why don't you keep a portion of it for savings and use the balance to lower the student loans monthly payments?
Back to top

simba




 
 
    
 

Post Sun, Dec 09 2018, 8:35 pm
Is there any benefit in paying the loans of early or is it the same payback amount if it’s paid out over the years?
That would make a difference to me. If there is no financial benefit then why pay it off early. Let them carry the loan and you hold on to the money.
Back to top

amother
Navy


 

Post Sun, Dec 09 2018, 9:12 pm
amother wrote:
I wasn't asking from a financial point of view but more of an emotional side. If roles were reversed how would you feel about it? I worry so much about the future that I just sit on this savings or maybe cause we aren't saving more. Is it foolish to use all of my savings to pay off husbands debt or is it wise to keep it for myself.


I relate to this perspective as well. And unless there was a significant advantage to be had by paying the loans early I probably wouldn’t do it. I would buy a house/ investment before paying off student debt in that number. Again, I would also be asking ppl smarter than me, while taking the emotional aspect into consideration.
Back to top

amother
Cobalt


 

Post Sun, Dec 09 2018, 9:29 pm
Two separate issues

1) what is the financially smart decision. Due to the amount of money, I feel it's worthy of speaking to a financial planner or accountant.

2) your emotional comfort in having separate funds under your name. It seems you don't want to use "your" money to pay "his" debt, despite the fact that he incurred the debt to get a profession to support your mutual family. Do you know where that feeling is coming from? Do you work? Do you have negative experiences in this area? Do you feel safe in your marriage? How would you feel if the situation was reversed: he received a significant amount of money and the loan was under your name. There's a lot that could be behind your feelings.
Back to top

causemommysaid




 
 
    
 

Post Sun, Dec 09 2018, 10:31 pm
7% seems high. See if he can refinance.

As for paying it off, I don't think it's a good idea financially. If you pay it off then the money is gone.

If you invest it wisely, the money is there compounding interest and continuously making money for you. In a year you can have 110K earning money in two years 122K, 3 years 134K etc.

As for the fear of getting divorced. No one knows your marriage but if you really fear for that then definitely don't pay off his loan.
Back to top
Page 1 of 1 Recent Topics




Post new topic   Reply to topic    Forum -> Household Management -> Finances

Related Topics Replies Last Post
What are you paying for backyard camp?
by amother
0 Today at 1:35 pm View last post
Well paying jobs that don't require math, compute or science 13 Tue, Mar 26 2024, 5:58 am View last post
Mishloach manos for your husband...advice from recent widow
by amother
27 Sun, Mar 24 2024, 3:04 pm View last post
S/O mishloach monos to ex husband from kids
by amother
13 Thu, Mar 21 2024, 10:49 am View last post
Paying off a student loan
by amother
27 Thu, Mar 14 2024, 12:04 pm View last post