Should your student loans and your spouse’s get hitched?

Multiple studies have shown that student debt can cause borrowers to delay getting married. For some borrowers, though, marriage could actually be a gateway to paying less.

You can save money by refinancing student loans, but not everyone qualifies. If your better half has a better financial profile, you can share the benefits of refinancing in two ways:

• Refinance together. You combine your student loans with your partner’s into one spousal loan with a lower interest rate.

• Co-sign for you. Your spouse co-signs a loan refinancing your debt, getting you a lower rate on the back of his or her finances.

If you’re considering getting hitched to your partner’s loans, here’s how to decide if you should.

Ref inancing “for better:” Refinancing makes the most sense to save money on higher-interest private and graduate school loans.

For example, by refinancing a $60,000 loan from 7% interest to 5%, you’d save roughly $7,200 over a 10-year term.

Typically, you’ll need robust finances and a good credit score to qualify and get the best rate.

Spouses may “increase (their) chances at getting a better rate together,” says Andrew Zoeller, digital program director for Purefy, which refinances loans for Pentagon Federal Credit Union, or Penfed.

For joint spousal loans and loans that spouses co-sign, Penfed evaluates the couple based on their combined income and counts shared debts, such as mortgages, only once. This allows more individuals — such as stay-athome parents with good credit — to meet Penfed’s lendingcriteria.

In 2019, 67% of co-signed Penfed student loan refinances were spousal loans, according to Zoeller.

Ref inancing “for worse:” If you co-sign a refinancing loan or combine debts with your spouse, you’re equally responsible for repaying the balance — even after a divorce.

For example, lawyer Joshua R.I. Cohen says a divorce decree could outline who’s responsible for repayment, but both names remain legally on the debt. That means if one spouse doesn’t pay, the other still suffers the consequences of missed payments, such as damaged credit and collection calls.