Is a surviving spouse responsible for student loan debt cancellation?

Dalton Reichel asked a question: Is a surviving spouse responsible for student loan debt cancellation?
Asked By: Dalton Reichel
Date created: Thu, Jun 17, 2021 9:50 PM

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Those who are looking for an answer to the question «Is a surviving spouse responsible for student loan debt cancellation?» often ask the following questions:

✔️ Is a surviving spouse responsible for student loan debt?

Generally, a living spouse will not be held legally responsible for repaying student loans that belonged to the deceased spouse… A spouse might also be required to repay a deceased partner's private student loans if they reside in a community property state.

Question from categories: credit card debt loan forgiveness

✔️ Is my spouse responsible for my student loan debt cancellation?

No. Student debt that you bring into a marriage remains your debt. Let’s say you have $30,000 in federal student loans and $40,000 in private student loans when you get married. Your spouse might help pay down your debt, but you’re the only one legally responsible.

✔️ Is a surviving spouse responsible for student loan debt and mortgage qualification?

Marrying someone with student loan debt won’t make you liable for their loans. No. Student debt that you bring into a marriage remains your debt. Let’s say you have $30,000 in federal student loans and $40,000 in private student loans when you get married.

10 other answers

If your spouse’s student loan debt was taken out in their name, you can’t claim to be the one responsible for it. In 2009, Elizabeth and James Garner made the decision to divorce. Garner, who is a business attorney, has over $300,000 in outstanding student loans.

Discussing if your soon-to-be spouse is responsible for student loan debt, before marriage, is critical because there are a variety of repayment plans available for those who borrow federal loans. The following income-driven repayment methods for federal student loans only consider the borrower’s income if a couple submits married filing separately tax returns: Pay as You Earn (PAYE) Income-based repayment (IBR) Income-contingent repayment (ICR) Regardless of how a couple files taxes, the ...

Generally, a living spouse will not be held legally responsible for repaying student loans that belonged to the deceased spouse. However, there are some exceptions, such as when the spouse has co-signed the loan.

A debt collector is allowed to contact the deceased person’s spouse looking for the person authorized to pay the deceased spouse’s debts, such as the executor or administrator of the estate. Although the debt collector may communicate with you about the debt, it is not allowed to represent that you are responsible for paying the debt with your own assets unless there are specific circumstances that make you legally obligated for the debt, such as if you were a cosigner or joint ...

Although your federal student loan debt doesn't go away after 7 years, neither your surviving spouse nor your children will be responsible for your loans when you die. This loan cancellation at death is why I rarely advise student loan borrowers to refinance their federal student loans with a private lender like SoFi.

If you have no cosigner but are married, and you have student loans when you die, whether or not your surviving spouse is responsible for paying your remaining debt depends upon the laws of your state and the type of loan. Of course, if you have a federal student loan or if the terms of your private student loan indicate that your student loan is discharged when you die, your spouse will not have to pay in any case.

First, one spouse isn’t liable for the other spouse’s loans taken out during college. For example, if the husband took out Federal student loans to pay for school, his wife isn’t responsible for the debt, even if they are married. So, if the spouse with student loans dies, the surviving spouse doesn’t have to pay them back. Even if you ...

People often die with outstanding credit card bills, loan payments or other forms of outstanding debt. The only types of debts automatically forgiven upon the death of the debtor are federally backed student loans. In most states, however, these debts cannot automatically be assigned to a surviving spouse or other family members unless those debts were incurred through a joint account. Creditors do have the legal recourse to collect their outstanding debts during the court-ordered probate ...

If a spouse with a student loan dies, the surviving spouse is usually not obligated to pay back the loans. They are immediately subject to cancellation of debt. There are exceptions here, too. If parents take out a parent loan for their child, both parents may be responsible for repaying the loan and this is unaffected by the death of a spouse.

In the nine community property states — Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin — a surviving spouse may be held liable for repaying a private student loan following the death of their husband or wife, even if they didn’t cosign the loans, but only if the loan was taken out after the marriage.

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Typically, you aren’t responsible for your spouse’s student loans. However, there are some situations where you may be on the hook for them. There also may be better repayment options available to make paying off student debt easier on you both — like spouse student loan refinancing, for example. So let’s dive deeper into student loans ...

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Is spouse responsible for student loan debt incurred before marriage?

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A spouse is typically not responsible for student loan debt incurred before marriage. And that's usually true even if they live in community property states… FYI: The federal government allowed married couples to apply for a joint consolidation loan to get into an affordable repayment plan.

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In alabama is a surviving spouse responsible for the credit card debt of their deceased spouse?

Alabama is not a community property state, the surviving spouse is not responsible for creditor debt unless he or she was a joint account holder.

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When is a spouse responsible for loan debt?

Any joint debts you have will be treated by the lender as “jointly and severally liable”. Unfortunately, that means that if one of you can’t pay for any reason – including accident, sickness, abandonment or even death – the other partner will be responsible for the entire debt.

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Is student loan debt cancellation taxable?

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In general, if you have cancellation of debt income because your debt is canceled, forgiven, or discharged for less than the amount you must pay, the amount of the canceled debt is taxable and you must report the canceled debt on your tax return for the year the cancellation occurs.

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4. Student loan cancellation may only be for college debt. If you only have graduate student loans, you may not get any student loan forgiveness.It’s possible, although not guaranteed, that ...

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The estate is responsible for the loan. If the spouse wants to keep the car, they may have to assume the loan, if the bank allows them to. Otherwise the vehicle may have to be sold.

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Surviving spouses can re-use their VA benefit to buy homes. Once you pay off a loan or decide to move into a new home, you can use the benefit again for your next home purchase. Keep in mind that eligible surviving spouses need to meet credit, income, and financial requirements to get approved for a VA loan.

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Is my spouse responsible for my student loan debt and mortgage qualification?

Is your spouse responsible for student loans incurred before marriage? No. It’s a different story, however, if you cosigned for your spouse’s student loans before …

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Is spouse responsible for student loan repayment when spouse dies?

If your spouse’s name is the only name on a student loan, and you did not cosign the loan, generally you have no obligation to repay the debt after your spouse dies. The main exception is if you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin) and the loan was borrowed after the marriage but before death or divorce.

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Can i erase student loan debt cancellation?

Borrowers working in public or not-for-a-profit organizations, or more specifically, elementary and secondary schools, can apply to this program to cancel student loan debt. However, additional requirements also exist. The borrower needs to satisfy one of these conditions, too: Working in schools serving low-income students

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Can i settle student loan debt cancellation?

You can negotiate harder and try to get the Department or guaranty agency to cancel the debt. Also, guaranty agencies are permitted to accept these settlements, but they are not required to do so. Tax Consequences. There may be tax consequences if you get a student loan settlement.

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Is cancellation of student loan debt taxable?

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If your debt is forgiven or discharged for less than the full amount you owe, the debt is considered canceled in the amount that you don't have to pay… The canceled debt isn't taxable, however, if the law specifically allows you to exclude it from gross income.

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Is student loan cancellation of debt taxable?

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If your debt is forgiven or discharged for less than the full amount you owe, the debt is considered canceled in the amount that you don't have to pay… The canceled debt isn't taxable, however, if the law specifically allows you to exclude it from gross income.

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Once the current forbearance ends, the biggest consideration around refinancing federal loans might be the possibility of broad student debt cancellation. If you want to hold out for cancellation —...

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What is cancellation of debt student loan?

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Debt cancellation is when an amount that you owe to a lender is forgiven or discharged. While you will no longer be responsible for paying back that amount of debt after it is canceled, there could be tax implications you need to know about. Here's how the cancellation of debt works, and how it could affect your taxes.

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Where to check student loan debt cancellation?

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Does spouse inherit student loan debt?

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All federal student loans are dischargeable upon a borrower's death, which is an important benefit of federal student loans. Federal student loans are not passed on to anyone in your family or even your estate. If you die, your federal student debt is instead fully forgiven and is no longer owned or owed by anyone.

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Does student loan debt affect spouse?

No. Student debt that you bring into a marriage remains your debt. Let’s say you have $30,000 in federal student loans and $40,000 in private student loans when you get married. Your spouse might help pay down your debt, but you’re the only one legally responsible.

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Is my spouse responsible for my student loan debt affect buying a house?

Is your spouse responsible for student loans incurred before marriage? No. It’s a different story, however, if you cosigned for your spouse’s student loans before the marriage. If you’re a cosigner, you’re legally responsible for the debt if the borrower stops repaying the loan, which can make you subject to: Collection efforts; Lawsuits; Judgments

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Can a surviving spouse use va loan?

Surviving spouses can re-use their VA benefit to buy homes. Once you pay off a loan or decide to move into a new home, you can use the benefit again for your next home purchase. Keep in mind that eligible surviving spouses need to meet credit, income, and financial requirements to get approved for a VA loan.

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Do credit cards consider student loan debt cancellation?

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