Consolidate consolidating consolidations loan loan student student
Only if your combined credit scores and incomes would give you the most favorable loan terms and savings on interest should you consider a spousal consolidation loan.
A spousal consolidation loan locks you into a financial obligation with your spouse that may be very difficult or costly to get out of, especially if you decide to get divorced.
Maybe you are desperate to take advantage of a loan forgiveness program that’s impossible to access with a joint loan; maybe you’re getting divorced and the prospect of sharing debt with your ex for years to come is a very unpleasant one.
Whatever the reason, you are in a tricky situation.
Unlike the other loans, consolidation loans have a fixed interest rate for the life of the loan.
Consolidation loans have longer terms than other loans. Although the monthly repayments are lower, the total amount paid over the term of the loan is higher than would be paid with other loans.
If you and your spouse have a loan where one of you co-signed, you can theoretically release a co-signer, but lenders are not always willing to do this.
You cannot release the name of someone on a joint loan.However, some private lenders will consolidate a married couple’s loans, though the procedure would technically be considered a refinance.