2021 NerdWallet Best-of Awards Winner for Best Student Loan Refinancing Overall
2021 NerdWallet Best-of Awards Winner for Best Student Loan Refinancing Overall
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Student Loan Refinancing for Married Couples

If you’re married, combining finances can make life easier and even save you money. But does it make sense for your student loan debt?

Do both you and your spouse have student loans? It wouldn’t be surprising — according to Pew Research Center, 15% of all adults have outstanding student loan debt.

And if you both have multiple loans to manage, it can be a nightmare to keep track of all your different payment dates while staying on top of your bills.

By refinancing your student loans together, you can simplify your debt into one new loan. Plus, you could save money on interest and customize your repayment term to fit your financial needs.

Here’s everything to know about student loan refinancing for married couples.

Spouse Student Loan Consolidation

A spouse student loan consolidation combines both of your student loan balances and lets you pay them off under a single account — and it’s exclusively available through PenFed Credit Union.

PenFed’s Spouse Loan is a unique loan option that consolidates each partner’s student debt into one new loan, which isn’t possible with other refinancing lenders.

By taking advantage of this feature, PenFed looks at your combined household income and debts — rather than assessing them separately — to determine if you’re eligible for a refinance. In addition, your new interest rate is based on the higher of your two credit scores and degrees.

This type of loan can be especially useful if one person has a significantly higher income or credit score. If you refinance as a couple, you’ll have a much better chance of being approved and offered a lower rate – allowing you to save the most money possible.

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Top Reasons to Refinance With Your Spouse

Getting a spouse loan consolidation can have some serious benefits for you and your loved one, especially in certain situations.

Save more money together

If one spouse has a significantly higher income, credit score, or both, a Spouse Loan can help you take advantage of this difference and make it easier to get approved for a lower interest rate. With a lower rate, you’ll save money month-to-month and over the life of your loan.

Simplify your household finances

A Spouse Loan will consolidate each of your loans into one new loan with PenFed. If you both have a variety of different loans with different loan servicers, this will greatly simplify your student debt management. You’ll have just one easy monthly payment with one servicer going forward.

Customize your repayment term

Looking to pay off student loan debt faster? You can refinance to a shorter term to ditch debt more quickly — saving you time and even more money on total interest costs. Or maybe you want more room in your monthly budget? You can also refinance to a longer term to decrease your monthly payment — giving you more money each month for other goals while lowering your debt-to-income ratio.

Top Reasons to Refinance Student Loans With Your Spouse

If you’re married and both you and your spouse have student loans, refinancing them together can help reduce the financial strain of your combined debt payments.
But spouse student loan consolidation isn’t available with most student loan refinance lenders, so it’s important to know what your options are and why it’s worth considering.

Combining Your Student Loans With Your Spouse’s Debt: 6 Pros and Cons

If you’re married and both you and your spouse have student loans, refinancing them together can help reduce the financial strain of your combined debt payments.
But spouse student loan consolidation isn’t available with most student loan refinance lenders, so it’s important to know what your options are and why it’s worth considering.

Refinancing With Your Spouse as a Cosigner

If you’d like the benefits of student loan refinancing while keeping your debt separated, you can always pursue a traditional refinance. And if the spouse who’d like to refinance is struggling to qualify on their own — either because of a low credit score or income — the other person can act as a cosigner.

If you cosign your spouse’s loan, you’ll be adding your name to their application and guaranteeing you’ll make payments if they’re unable to do so. As a result, that debt will show up on both of your credit reports and it will damage your credit if either of you misses a payment.

By having a creditworthy cosigner attached to the loan, your chances of being approved and getting a lower rate will both increase — similar to a Spouse Loan through PenFed.

However, your income and debts will be assessed separately during the application process, and if you do qualify, your student loans and payments will also remain separate under different accounts.

Before moving forward with a traditional student loan refinance, remember to shop around first for the best possible deal. Use Purefy’s Compare Rates tool to compare rates and terms from multiple top refinance lenders — including PenFed — to find your lowest rate quickly and easily.

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