A little over a decade ago, the federal government acted to prohibit joint consolidation of loans. However, for couples who opted to consolidate their loans, often to get a better interest rate, prior to that, separating out who owes what in a divorce can be difficult and sometimes impossible. One spouse can get stuck paying far more than he or she owes individually, particularly if the other spouse declares bankruptcy or doesn’t have the means to contribute to the repayment. With student loans, that can run into the tens of thousands and possibly hundreds of thousands of dollars. Paying off one’s own student debt can take decades. However, if your name is on a consolidated loan, you could end up paying your ex-spouse’s debt or risk harm to your credit score. Some people have urged federal legislation that would allow student loans consolidated before such consolidation was banned to be split. However, even though this could impact thousands of people, experts say that’s likely not enough for legislators to consider it worth the time and effort to address the problem. People with joint consolidation loans can apply for repayment plans based on each person’s income. However, that requires the cooperation of both spouses, who must provide financial information. Estranged spouses may not want to cooperate if it would mean more money out of their pockets. In relationships where there has been domestic violence, the victim may well not want to have any contact with his or her abuser. According to
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