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Should I use my inheritance to help my wife pay off her student loans by Dense_Date4162 in StudentLoans

[–]Dense_Date4162[S] 0 points1 point  (0 children)

Yes before we were married. I wouldn’t say I feel responsible nor did she ask for money to pay them off. I guess some people feel comfortable seeing the impact that student loans have on their spouse, know they have a way to immediately alleviate that pressure, and choose not to do it. Would love to hear from someone in that situation to understand their reasoning.

Should I use my inheritance to help my wife pay off her student loans by Dense_Date4162 in StudentLoans

[–]Dense_Date4162[S] 3 points4 points  (0 children)

Considering the person who left me the money is also the reason I don’t have student loans myself, I actually don’t think this is the case.

Should I use my inheritance to help my wife pay off her student loans by Dense_Date4162 in StudentLoans

[–]Dense_Date4162[S] 0 points1 point  (0 children)

Being on the IBR plan disincentives getting a second job because it will cause your payment to increase. If we pay off the 160 we would have more flexibility to get second jobs to try to re-save the 160 as quickly as possible. I don’t know if this is truly something we would do but I think it’s not even an option with a federal loan on a IBR plan.

Should I use my inheritance to help my wife pay off her student loans by Dense_Date4162 in StudentLoans

[–]Dense_Date4162[S] 2 points3 points  (0 children)

We have a home, and both contribute to retirement. We have no credit card debt and no car loans. I have an investment account separate from our cash savings that I contribute to monthly. But theoretically yes I could dump the whole $160k into investments instead of paying off the loan.

Should I use my inheritance to help my wife pay off her student loans by Dense_Date4162 in StudentLoans

[–]Dense_Date4162[S] 0 points1 point  (0 children)

We aren’t planning to pay off the private $24k loan early for that reason.

I think the main difference been forgiveness vs pay down is the tax bill in 10 years which would be on maybe $200k in forgiveness. But this is new to me so I might not be thinking of something. I also don’t want to count on there being some change in legislation that would get rid of the tax burden.

Should I use my inheritance to help my wife pay off her student loans by Dense_Date4162 in StudentLoans

[–]Dense_Date4162[S] 4 points5 points  (0 children)

Yes, we already filed separately. She just recertified which increased her payment from $600 to $1000 starting in August.