Why am I Stuck With the Spousal Consolidation Loan When My Ex-Spouse Went Missing?


Dear Steve,

Spouse consolidation student loan. We divorced and I look into my credit I found this amazing surprise. What are my options as for repayment, loan forgiveness? I currently can’t afford to make any payments due to my income and I don’t qualify for deferment since ex-spouse is missing in action.



Dear Marie,

Federal spousal consolidation loan are the worst. This must be a pretty old loan though. The Department of Education has not generated new spousal consolidation loans in many years. I believe they went away in 2006

If this truly is a spousal consolidation loan then you are 100 percent for the entire loan balance if your former spouse fails to pay. You can divorce your spouse but not this particular type of loan.

Deferment is only available if your former spouse participates. The Department of Education says “In order to qualify for a deferment both borrowers must individually and simultaneously qualify for the same type of deferment.” – Source

Even the Department of Education’s own working group meeting in 2003 thought Spousal Consolidation Loans sucked. They said, “Spousal consolidation loans, as they exist today, are not in the best interest of borrowers as both individuals are held jointly and severally liable for the debt regardless of their future marital status.” – Source

Your first stop should be at the National Student Loan Data System to confirm what you have is actually a true spousal consolidation loan.

Let me know what date it says your loan was originated. Post an update in the comment section below.

Steve Rhode
Get Out of Debt GuyTwitter, G+, Facebook

If you have a credit or debt question you’d like to ask, just click here and ask away.

This article by Steve Rhode first appeared on Get Out of Debt Guy and was distributed by the Personal Finance Syndication Network.

The post Why am I Stuck With the Spousal Consolidation Loan When My Ex-Spouse Went Missing? appeared first on Personal Finance Syndication Network.

About Damon Day

As a Debt Coach and a Financial Advocate, I have saved my clients Millions of Dollars by exposing the debt relief scams that other consumers fall victim to. I work directly for my clients to create custom debt relief strategies based on their own unique circumstances. Consumers who speak with me first, come out far ahead of those who don't, every single time. Guaranteed. +Damon Day