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Joining the Peace Corps after college or grad school is a noble way to start your career. Volunteers in the government program deploy to more than 60 countries around the world for two-year stints of public service.

That can mean anything from teaching secondary school, to working with farmers, to promoting health awareness. If you’re considering following this path, you’d be joining more than 230,000 American adults who have served since the program was founded almost sixty years ago.

But if you’re like most students these days, you might be graduating with a significant amount of educational debt. Today, 70% of undergraduates finish school with debt, with the average borrower owing more than $37,000, and that’s before interest adds up over the years.

Committing to the Peace Corps, which pays only a local living allowance while you’re enrolled, can be daunting when you’re facing that burden. You may be wondering whether the Peace Corps will even allow you to join with a heavy debt load.

The answer is yes—he Peace Corps and student loans can go together. You’re still responsible for your loans if you become a volunteer, but you could be eligible for additional benefits as a result of your service that can make paying them off easier. If you’re seriously thinking about the Peace Corps, here’s what you need to know about managing your debt during and after your time abroad.

Options for Reducing Loan Payments During Your Service

If you join the Peace Corps right after school, you may not have to start repaying your loans immediately. That’s because anyone who has certain federal loans (Direct Loans and Stafford Loans) gets a six-month grace period before payments are due, although interest will might start accruing.

You don’t qualify for a grace period if you have a PLUS Loan, and with Federal Perkins Loan, you’ll have to check with the school that issued it. If you were enlisted in active duty military service, the grace period can be extended for up to three years. However, that doesn’t apply to the Peace Corps.

Still, like the military, the Peace Corps is considered a form of government service. As a result, if you have federal loans, you may be eligible for certain options to pause or reduce your payments while you’re a volunteer.

First, as a Peace Corps member you may qualify for deferment . This allows you to stop making payments, or reduce the amount you pay, during the time you’re in the field, for up to three years.

During deferment, you are not responsible for paying interest that builds up if you have certain kinds of loans, including Direct Subsidized Loans, Subsidized Federal Stafford Loans, or Perkins Loans. You are responsible for interest, however, if you have unsubsidized federal loans or Direct PLUS loans.

Note that your deferment will not automatically kick in when you join the Peace Corps—you’ll need to submit an application and documentation to your loan servicer.

Your loan servicer may also have you re-apply for deferment after a year, so make sure you turn in the necessary paperwork. If you’re still in the six-month grace period for any of your loans, ask your lender about the right time to apply for deferment.

Another way to reduce your monthly payment on federal loans is to apply for an income-based repayment plan . The government offers four repayment plans designed to make payments affordable if you’re on a limited income. These plans tie how much you pay every month to how much you make, limiting your outlays to between 10% and 20% of your discretionary income.

The specific plan you qualify for depends on the types of loans you have and when you borrowed. If you stick with the plan when you get back, your balance may be forgiven if you continue making minimum payments for 20 or 25 years, depending on the plan.

If you have private loans, there’s no guarantee that you’ll be able to pause or reduce those payments. But some private lenders do offer flexibility during periods of economic hardship, so approach yours to ask whether they can offer you any options while you’re a volunteer.

How You Can Get Your Loan Partially Cancelled

If you have a federal Perkins Loan, you may qualify for another perk thanks to your Peace Corps service: partial cancellation .

You can get 15% of your loan canceled after your first year of service and another 15% after your second year, then 20% after your third and fourth years, respectively. That adds up to having 70% of your loan canceled after four years!

This also includes the interest that accumulated during that time. All borrowers who have Perkins Loans are eligible, regardless of when you took the loan out, but only service completed after Oct. 7, 1998, qualifies. This benefit can make it easier to sign up for the Peace Corps with student loans, but keep in mind that other types of loans aren’t eligible.

The Peace Corps and Public Service Loan Forgiveness

Since the Peace Corps is clearly a way of doing good in the world, it shouldn’t be too surprising that as a volunteer you may be eligible for Public Service Loan Forgiveness.

Under the program, if you make payments for 10 years on your loans under a qualifying income-based repayment plan, you may be able to have the balance on your loans forgiven.

Because you have to make 120 monthly payments to qualify, you would only be eligible if you continue in a public service job full-time at some point after leaving the Peace Corps. Other qualifying fields include government organizations, 501(c)(3) nonprofits, public service agencies such as libraries and police departments, and more.

The payments don’t have to be consecutive, meaning you may qualify if you go back to public service after a few years doing something else. Note that this program applies only to Federal Direct Loans, but not Perkins Loans or loans under the Federal Family Education Loan (FFEL) Program. If you’re hoping to qualify for this, complete an Employment Certification form every year, starting with your time in the Peace Corps, or when you switch jobs.

When you look into options for student loan forgiveness, beware of the scams out there, some of which target young graduates like you. One prominent example is the Obama Student Loan Forgiveness Plan, which doesn’t exist but sometimes lures borrowers to pay fees for paperwork they could’ve completed themselves or for nothing at all. Stick with the forgiveness options offered directly through the Department of Education .

How Student Loan Refinancing Can Help

If you’re looking for other ways to make payments more affordable while you’re in the Peace Corps, or after you leave, consider refinancing your student loans. You can refinance federal loans, private loans, or both.

When you do so, you take out a new loan from a private lender to pay off your existing loans, which might make sense if you qualify for a better interest rate or lower monthly payments than you previously had. A loan refinancer will take a look at your personal information, income, credit history, and other factors when deciding what terms and interest rates to offer you.

Fixed rates will stay the same for the term of your loan, while variable rates will shift over time. Keep in mind that refinancing federal loans will mean you have to give up government benefits like deferment, partial cancellation, income-based repayment, and Public Service Loan Forgiveness. But for some people, refinancing can be a great way to make student debt manageable while you’re a volunteer and for the ensuing years.

Don’t Let Student Loans Stop You from Following Your Dreams

If your goal after college or grad school is to join the Peace Corps, or engage in any public service for that matter, your student debt doesn’t have to be an obstacle . With federal loans, there are options for delaying or reducing payments or getting part of your debt canceled or forgiven.

And regardless of what kinds of loans you have, refinancing can be a way to make payments more affordable. Plus, when your two years of service are complete, you’ll get $8,000 from the Peace Corps that you can put toward your loans if you want to. Coming up with a plan to pay your loans is important, but that doesn’t have to come at the expense of making a difference.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SoFi Student Loan Refinance
SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org). SoFi Student Loan Refinance Loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Additional terms and conditions apply. Lowest rates reserved for the most creditworthy borrowers. For additional product-specific legal and licensing information, see SoFi.com/legal.

Do you love volunteering, but feel held back by your student loans? Maybe you’ve taken on a new side gig to help manage your student debt payment, and now there’s just not enough time in the day. If this sounds like you, there’s good news—you could potentially help pay off your student loans by volunteering!

There are a number of organizations that will let you volunteer to pay off student loans. From teaching in an underserved area to helping out a local non-profit in need, you may be able to get cash to put towards your student loans while making the world a better place. That’s not just a great way to multitask, but it’s also a fun way to pay off your loans. Who doesn’t love helping people?

On top of that, it’s a fabulous way to gain work experience that can boost your resume and help you stand out in your post-graduation job search and beyond.

Many employers love to see volunteer work and many of the types of positions that help you repay your loans require you to take initiative and be a leader which will help you grow professionally.

Here are some ways to volunteer and possibly pay down your student loans:

AmeriCorps

AmeriCorps is a government initiative that has been around since 1965. Its goal is to help young people take on service positions where they’re able to learn important work skills, help local communities, and earn money towards their education or student loans.

In order to qualify, you need to be at least 17 years old. If you want to participate in the AmeriCorps VISTA program , you need to be 18 or older.

Participants in the program may qualify to have their qualified student loans put into forbearance while they’re working. After 12 months of full-time volunteering, you qualify for a Segal AmeriCorps Education
Award , which can be used to “pay educational expenses at eligible post-secondary institutions,” according to the program.

Those who volunteer for the VISTA program can get a cash stipend instead . While volunteering with the program, you will also get a living allowance and health benefits.

If you volunteer to pay off qualified federal student loans via the AmeriCorps program, your time in the program also counts towards the Public Service Loan Forgiveness program (PSLF).

Shared Harvest Fund

The Shared Harvest Fund has a goal to help repay $20 million in student debt by 2020. The organization was started by three physicians with the goal of reducing graduates’ student loan stress.

Each time you volunteer to reduce student loans with the Shared Harvest Fund, you earn Stipend Coins which you can cash in with your student loan lender. You can earn up to $1,000 per project.

To get started, simply log into their website and find a cause or a project that interests you. You’ll be able to refine your work skills while doing good in your community.

Some examples of organizations that they work with include UnCommon Law , which helps adults and children who are struggling within the criminal justice system, and the Elgin Foundation , which helps kids in rural Appalachia with dental care and literacy programs.

Peace Corps

The Peace Corps is a government-run program that was founded in 1961 by President John F. Kennedy. The program allows you to pay off student loans by volunteering around the world at a grassroots level. You gain work experience and become a global citizen while earning money that can help you repay your student debt.

The program is open to anyone over the age of 18, and while you are an active Peace Corps volunteer, you may qualify for deferment or forbearance on your federal student loans.

As a volunteer with student loans , you may also qualify for income-driven repayment. Since Peace Corps volunteers earn fairly low salaries, your payments could be as low as $0. If you hold a Perkins Loan, you could qualify for 15% to 70% forgiveness.

If you have a federal Direct Loan, you could qualify for the Public Service Loan Forgiveness. It’s important to thoroughly review the details of PSLF —for those who qualify, it could dramatically reduce the amount of time you spend repaying your student loans. Full-time AmeriCorps and Peace Corps volunteers can qualify for PSLF, but it requires 120 qualifying monthly payments made on an income-based repayment plan.

National Health Service Corps

If you’re a medical professional such as a doctor, dentist, or behavioral health professional, another way to pay off student loans by volunteering is via the National Health Service Corps .

You can get part of your student loans forgiven if you volunteer to work in an underserved area through the National Health Service Corps. The program helps ensure that those in impoverished, underserved, or remote areas have access to quality health care.

In addition to getting a regular paycheck from working in those areas, you’ll also get up to $50,000 to repay your student loans if you commit to working for two years, full-time, in one of those underserved areas. Also, it is not treated as income in the same way that other forms of student loan forgiveness are, so you won’t be taxed on it.

Not Able to Volunteer to Repay Your Loans?

Unfortunately, not everyone is able to volunteer to pay off student loans. It’s also important to consider whether it makes sense to volunteer to help reduce some of your student loans. For example, if you’re a doctor, you might have a much lower income working in a remote area and miss out on far more than just $50,000 worth of billings during those two years.

That money wouldn’t just give you more cash to repay your loans yourself, but it would also help you build an income that could have a long-term impact on your annual earnings. As with most things, volunteering as a way to repay your student loans has an opportunity cost.

Similarly, when you look at the volunteer opportunities available, you might want to look at how much you’re ‘earning’ for each hour you volunteer.

You might be better off getting a side hustle if you’re only looking to repay your student loans quickly.

If you don’t qualify to volunteer or are looking for an alternative to reducing your student loan debt burden, you could consider refinancing. When you refinance your student loans you could potentially qualify for a lower interest rate, which might cost you less in interest over the life of the loan, depending on the new term you choose. If you qualify to refinance with SoFi, there are no origination fees. You’ll be able to select a new term length and choose between a fixed or variable rate loan.

If you’re looking to simplify your repayment plan, refinancing could be great for you since you’ll only have to worry about one monthly payment. However, refinancing your student loans with a private lender means you’ll forfeit your access to federal student loan benefits.

For those interested in refinancing with SoFi, we offer member benefits like Career Coaching. To see how refinancing could impact your student loans, take a look at SoFi’s easy-to-use student loan refinance calculator.

SoFi Student Loan Refinance
SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org). SoFi Student Loan Refinance Loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Additional terms and conditions apply. Lowest rates reserved for the most creditworthy borrowers. For additional product-specific legal and licensing information, see SoFi.com/legal.

The weather’s heating up, kids are out of school, and you’re thinking about how to spend the next three months until you begin business school. Perhaps you’re sweating at your day job, trying to decide when to give notice, or poring over spreadsheets, stressing about how to pay for graduate school in the fall. You might have plans to travel, intern, or volunteer.

The reality is, there’s no wrong way to get ready for business school. However, there are a few things you could consider and prepare before packing up to head to school in the fall.

Finding an Internship

Nearly half of all incoming business school students say they’re considering changing career paths. If you’re switching career tracks before starting your MBA, a pre-MBA internship might be ideal for you.

A pre-MBA internship is typically a four-to-six-week concentrated internship focused in fields like marketing, venture capital, private equity, or consulting.

An internship could mean getting ahead of your classmates in real life experience, but it also comes with a caveat. These internships might offer pay, however some of them don’t offer a salary . If you’re looking to make some extra dough before tuition bills in the fall, it might be smart to sit tight in your current job.

On the other hand, if you want a leg up and some professional experience in a field you haven’t worked in yet, a pre-MBA internship could provide some direction as to where you want to take your business school degree.

Sharpening Your Skills

Maybe you’re taking a few months off traveling, relaxing, or volunteering before starting your MBA. You can expect school to be rigorous in the fall, and with an internship likely next summer, this might be your only downtime for a while. Taking time off just might be the ticket for you.

However, while you’re chilling poolside or lugging a backpack across Europe, you might want to dedicate a little time to resharpening some skills before school starts. You could take some books along to prep for the first year—you can anticipate a lot of reading in the fall .

While you’re at it, you could grab a few math books or consider an online class to brush up on your quantitative skills . Your fall course load is filled with core curriculum, and if you think your math skills are rusty, it wouldn’t be a bad idea to start reading those textbooks early.

While you’re reading and relaxing, it wouldn’t hurt to squeeze in some networking. Business school is all about connections, and starting to cultivate a network through professional and personal contacts the summer before starting your MBA might be a great way to get ahead.

Quitting Your Job

You might be spending the summer working and possibly sweating about when to give your notice. You might be planning to work through the summer, but you could let your employer know as soon as you can about your plan for departure. Most career experts agree, giving ample notice about your decision to attend business school in the fall gives you a solid exit strategy.

While you’re letting your employer know you’re campus-bound in the fall, the notice doesn’t have to be the traditional two weeks. Instead, you could work with your manager or boss to create a more leisurely exit plan—perhaps lining up a replacement in the process. Since you quit for an MBA, as opposed to leaving for a competitor, there’s no reason your relationship with your current team should end on a negative note.

Banking a couple paychecks could potentially help with grad school expenses, but you might want to allow yourself time to prepare for school in the fall as well. Consider your timeline for relocation, preparation, and maybe a little time to unwind.

Considering the Essentials

No matter what you end up doing the summer before business school, you might want to take time to address how you will pay for your MBA.

Business MBAs can be some of the most expensive programs out there—the average business school student in America graduates with around $70,000 in debt.

Summer could be an opportunity to make some money for savings before starting school, but it’s also a time to review your payment plan. Will you go for federal loans, apply for grants, or take out private student loans?

On top of moving, orientation, and beginning your studies, you may want to take time before the semester starts to familiarize yourself with graduate school loans. While you’ve been through it before during undergrad, taking out loans for graduate school might be a totally different animal in terms of, for example, what financial aid you qualify for and how much you have to take out.

Don’t Take a Break on Your Finances During Summer Break

The summer before business school can be a time of relaxation, learning, preparation, or working—there’s no wrong way to spend it. No matter what you do, you might want to take time to consider and understand how you’re paying for your MBA.

That might mean research on refinancing your undergraduate student loans once you’re done with graduate school. Once you finish b-school and secure a great job, refinancing your grad school loans could be a way to potentially get you a lower interest rate or more favorable loan terms.

Keep in mind that refinancing your federal student loans means losing out on federal loan benefits, like income-driven repayment plans and deferment. So, for example, if you have federal loans from undergrad, and are hoping to defer them while getting your MBA, now might not be the right time to refinance.

However, you may consider refinancing those undergrad loans with your graduate school loans once you finish business school. (That way you’ll only have to worry about paying one loan off, instead of multiple.)

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SoFi Student Loan Refinance
SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org). SoFi Student Loan Refinance Loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Additional terms and conditions apply. Lowest rates reserved for the most creditworthy borrowers. For additional product-specific legal and licensing information, see SoFi.com/legal.

Student loans can help you achieve your educational dreams, but they can also have lasting effects on your personal finances.

The short answer is yes. Borrowers with student debt eager to take out a new loan may discover that student loans can drag on their debt-to-income ratio (DTI), which is a factor lenders examine carefully before issuing new loans. Luckily your DTI isn’t set in stone, and with a little effort, you can decrease it while increasing your chances of approval for a new home loan.

What Is Debt-to-income Ratio?

Debt and income are two sides of the same coin. One side (income) represents the regular money you have coming into your accounts, and the other (debt) is the regular money you have flowing out.

Your DTI is represented by your regular monthly debts divided by your gross monthly income and expressed as a percentage.

For a W2 wage earner, our gross monthly income is the amount of money you make each month before taxes and other deductions are taken out. For self-employed individuals net income may be used.

Here’s a hypothetical situation that you can work through using a calculator and a pen. Say you have $300 each month in student loan payments, $500 in auto loan payments, and $700 in other debts. Your total debt each month is $1,500. If you’re making $4,500 a month (gross), your DTI is $1,500 divided by $4,500, or 33%. If you’d like a little extra help calculating your DTI, you can use an online calculator . Keep in mind that not all income sources are eligible to use for loan qualifying.

Lenders look at your debt-to-income ratio, among other factors, to help them figure out whether you will comfortably be able to make regular payments on new debts.

If your debt-to-income ratio is on the lower end, a lender may take that as a sign that you’ll have an easier time paying back a new loan. On the other hand, according to the Consumer Finance Protection Bureau , “Evidence from studies of mortgage loans suggest that borrowers with a higher debt-to-income ratio are more likely to run into trouble making monthly payments.”

DTI is the ratio of your total debt to your income. So, that’s where student loans factor in—they are part of your debt when calculating that ratio. It’s also where credit card debt, car loans, and any other consumer debt would come into play. To find your DTI, you’d want to add up all of your debts (student loans, credit card, mortgage, etc.) and then divide by your qualifying gross income.

What is the Ideal Debt-to-income Ratio?

There are a few general rules of thumb surrounding ideal DTIs. A DTI of 43% is typically the highest you can have and still receive a qualified mortgage . Though 43% DTI maximum is generally the accepted range, especially for non conforming loan amounts, lenders will examine other factors such as credit score, savings and the size of your down payment when determining an acceptable DTI.

LoweringYour Debt-to-income Ratio

If you have student loans and you’re thinking about taking on other debt, such as a mortgage, take a hard look at your DTI. If it’s less than ideal, there are a number of options you can pursue to lower your ratio.

First, you can try to increase your income. You may decide to start a side hustle, get a new job with higher wages, or ask for a raise. As you increase the denominator in your DTI, your overall percentage will fall. However, there are qualifications for using a second job or part time income for decreasing your DTI.

Often it has to be stable ongoing income received for the past two years.

You may also look for ways to reduce your overall debt, which can have a more immediate effect on your DTI. If you’re grappling with large student loans debt, you could consider consolidating your loans or refinancing with a private lender. If you’re looking to consolidate your federal student loans, you could consider a Direct Consolidation Loan.

This combines all of your federal student loans into one. And your new loan still qualifies for most federal loan benefits. However, the new interest rate on your Direct Consolidation Loan is the weighted interest rate of your bundled loans, rounded up to the nearest eighth of a percent.

If you qualify to refinance your student loans with a private lender, they will pay off your old loans and can provide you with a new loan at a (hopefully) lower interest rate.

A lower interest rate means you’ll pay less in interest over the life of the loan, if you don’t extend your repayment term. Refinancing can also help you shorten your term if you’re looking to get out of debt faster.

While Direct Consolidation Loans are solely reserved for federal loans, you can refinance private and federal loans (or even refinance both into one, new loan). Refinancing federal loans with a private lender means you’ll lose access to federal loan benefits like income-driven repayment plans, deferment, and forbearance.

You may also want to take a look at the other debts you have and find ways to reduce them. If you carry a lot of high-interest credit card debt, for example, you could consider making extra payments to pay it off faster.

Also, while you’re paying off your current debts, it’s not a bad idea to avoid taking on new debt if you can. This may mean making fewer purchases with your credit card or putting off big purchases such as a new car for a few years while you lower your DTI and pursue other goals.

Patience Can Pay Off

Lending rules, such as the maximum DTI a lender will accept, can feel like a real drag sometimes, especially if you’re itching to get a new mortgage. But keep in mind that these rules are there for a reason, and part of that reason is to protect you from taking on new debt that you can’t afford.

What’s more, taking the time to make student loans debt more manageable or pay it off entirely can be worth the effort since it can lower your DTI, which may help you qualify for more favorable terms on future loans.

Making sure your debt is manageable has the added benefit of potentially improving your credit score. Making full, on-time debt payments shows that you are responsible with your finances and can give your score a boost. This too might help you qualify for more favorable loans in the future.

Looking Forward

Visit SoFi to find out more about how refinancing your student loans can help to make your student loan debt more manageable and potentially decrease your debt-to-income ratio.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SoFi Student Loan Refinance
SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org). SoFi Student Loan Refinance Loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Additional terms and conditions apply. Lowest rates reserved for the most creditworthy borrowers. For additional product-specific legal and licensing information, see SoFi.com/legal.

Getting married is a momentous occasion—you’re choosing to legally commit to your partner in sickness and in health. And that’s something to celebrate. But before you say “I do,” it is important to understand how your student loan obligations might change after your big day.

After all, you’re ready to share your life, but do you have to share your student loans? Here are five things to know about student loans and marriage.

Open and Honest Communication is Key

Let’s be real for a second: money is stressful. In fact, money is one of the most common topics of relationship stress. Whether you’re arguing about high student loan payments or how much you want to spend on eating out every month, money can cause relationship problems.

There is good news, though: couples who talk openly about money daily or weekly are more likely to have strong marriages. That means that learning how to talk about money before you get married is one great way to create a strong relationship from the get-go, especially if you’re marrying someone with student loan debt, or have student loan debt yourself.

In addition to figuring out your money and budgeting style, it can be helpful to hash out the basics before your marital bliss is interrupted by your next student loan bill. For starters, it may be helpful to discuss exactly how much each of you owe on your student loans. It is important that you both understand exactly how much is owed so you can plan for repayment together.

Once you’ve got the hard numbers down, it may also be helpful to share what type of current student loan repayment plan you are on, and what your repayment priorities are. After all, if your partner wants to pay off their law school debt right away but you’re happy on an income-driven repayment plan as a school teacher, it is important that you have a plan for navigating potential disagreements.

While every relationship is different, all relationships will require decision-making about money. Learning to talk about money now can help set you up for success down the road.

Who is Responsible For Repayment?

You’re not automatically on the hook for your spouse’s loans. If you or your spouse took our student loans prior to your marriage, you likely won’t be responsible for those loans if your spouse stops paying.

Of course, if you or your spouse takes on new loans while you’re married and you live in a community property state, you may end up responsible for a portion of that debt.

The law is complicated, so if you’re worried about dividing up your assets before you get married, it is always good to talk to a lawyer. Many young couples are even now considering pre-nups to protect themselves and set up expectations in advance.

Will My Monthly Payments Change?

So then when it comes to student loans, marriage doesn’t change anything? Not so fast. One often-overlooked aspect of marriage is that it can change your income—and this matters for many reasons, including determining your monthly income-driven loan payments.

For example, if you’re on a repayment plan that uses your household income to determine your monthly payment, and are married and filing jointly, your lender will take into account both you and your spouse’s income, which could lead to higher monthly payments.

Likewise, you may miss out on the student loan interest deduction when it comes time to file your taxes. P.S., talking to an accountant or tax attorney when when it comes to all things taxes and student loans could be a smart idea. When in doubt, definitely speak with a licensed professional.

Thinking About Refinancing Your Loans with Your Spouse

Just because your student debt doesn’t automatically become a joint obligation the moment you say “I do” doesn’t mean you can’t combine your debt and focus on paying it off together.

Many couples choose to combine their student loan debt through refinancing so they can pay off one bill together, rather than juggling multiple debt payments.

Student loan debt and marriage can be stressful, and student loan refinancing allows you to combine multiple loans into one (potentially with a lower interest rate).

Of course, refinancing isn’t for everyone. If you or your spouse is planning on taking advantage of income-driven repayment or other federal repayment programs, joint refinancing with a private company could make you ineligible.

It’s important to start your marriage off on a strong foot by making sure that you and your partner can talk honestly about money. Together, you can navigate anything—including student loan debt.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SoFi Student Loan Refinance
SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org). SoFi Student Loan Refinance Loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Additional terms and conditions apply. Lowest rates reserved for the most creditworthy borrowers. For additional product-specific legal and licensing information, see SoFi.com/legal.

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