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03-25-2019, 10:27 AM | #16 |
Veteran
Join Date: Feb 2015
Location: He/Him
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pay your debt you ****in heathen
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Posts: 2,234
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03-25-2019, 10:30 AM | #17 |
Hey Loochy, I'm hooome!
Join Date: Oct 2008
Location: PooPooKaKaPeePeeShire
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I hope she got a worthwhile degree and job from that.
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Posts: 41,174
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03-25-2019, 10:31 AM | #18 | |
In Search of a Life
Join Date: Mar 2006
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Quote:
If your wife has no assets or money, ya they could be much more motivated. On the flipside, if there's a co-signer (likely) well uh that could get super ugly. |
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Posts: 22,274
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03-25-2019, 10:45 AM | #19 | |
MONTANA #19
Join Date: Mar 2005
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Quote:
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Posts: 4,325
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03-25-2019, 11:13 AM | #20 |
Supporter
Join Date: Aug 2000
Location: Utopia
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Before paying that I would consider if you have worse debt. At least the interest on that student debt is tax deductible. Are your cars debts paid off?
That interest rate isn't very good for student loans, so maybe paying it off is better long term to free up that monthly money. I doubt you'll get much done on a discount. |
Posts: 61,982
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03-25-2019, 11:18 AM | #21 |
11-5, baby
Join Date: Sep 2005
Location: Livin the dream
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Sounds like your wife should let you give out a few student loads if you're repaying $90K of her debt.
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Posts: 22,416
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03-25-2019, 11:19 AM | #22 | |
In Search of a Life
Join Date: Jul 2009
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Quote:
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Posts: 82,314
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03-25-2019, 11:20 AM | #23 |
Bono & Grbac wasn't enough
Join Date: Oct 2000
Location: Sioux City, IA
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Posts: 36,400
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03-25-2019, 11:21 AM | #24 |
11-5, baby
Join Date: Sep 2005
Location: Livin the dream
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Posts: 22,416
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03-25-2019, 11:36 AM | #25 |
...
Join Date: Nov 2001
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I'm by no means an expert (welcome to ChiefsPlanet), but from what I understand, doing this will do a lot of damage to her credit score. It's supposedly easier to do with private loans than a federal loan, so it may depend on who you're working with.
It's also my understanding that if any of your debt is actually forgiven, it becomes taxable income that will ding you next year on your return. But I'd be happy for someone with more tax knowledge than me to correct me on that. Either way I'd make sure to ask someone the tax implications if you actually pulled it off. |
Posts: 55,505
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03-25-2019, 11:37 AM | #26 | |
Supporter
Join Date: Apr 2007
Location: Scott City KS
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Quote:
The theory is sound though, if you have any debt that is at a higher interest rate, pay that off first. Or if you can achieve a higher return in some other financial instrument - 401K or whatever, it would be better to just keep paying and funnel the money into an instrument. Tax sheltered instruments will have yearly caps, so you'll have to hang onto some of that money or do some monkeying around. Your 401K will have the highest cap so if you and the wife go max out the 401K and use the money to live on, that would be better from a net value perspective. If you inherited an actual retirment fund as the beneficiary, that's even better. Just roll that shit into what you've got or a ROTH if you think you can beat it and forget about it. |
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Posts: 57,700
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03-25-2019, 11:40 AM | #27 |
In Search of a Life
Join Date: Mar 2006
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That's before factoring in the threshold to where going itemized would be better than standard is much higher now.
Instead of taking awful CP advice or blindly pissing nearly 100k, I'd talk with an advisor. |
Posts: 22,274
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03-25-2019, 11:45 AM | #28 | |
Supporter
Join Date: Apr 2007
Location: Scott City KS
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Quote:
So if he's got 90,000 @ 6.5%, that would be in the ballpark of $5,850 yearly, so he'd be limited out. I have no idea what his effective tax rate is, but if it is 20%, he'd be saving $500 on the student loan interest deduction, so it sure is nice, but it isn't a giant deal one way or the other. That's a little bit down in the weeds. If you have any questions, shoot. The big deal is that if it is in a retirement fund already, don't distribute it until you know what you're doing. |
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Posts: 57,700
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03-25-2019, 11:47 AM | #29 | |
Supporter
Join Date: Apr 2007
Location: Scott City KS
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Quote:
But student loan interest isn't an itemized deduction like Home Mortgage interest is. It is a 1040 adjustment on the (used to be) front page, so it will reduce AGI before the standard deduction is applied. |
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Posts: 57,700
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03-25-2019, 11:55 AM | #30 |
Supporter
Join Date: May 2005
Location: Who knows?
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Whatever you do don’t pay for her boob job.
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