Originally Posted by
LoneStarM1A
Quick question,
I just got married and my wife has a $90,000 dollar student loan and the interest rate is about 6%. I have about $700,000 in stocks and cash, about $250,000 of which is in 401k/IRA's, the rest mostly in stocks with about $100k cash.
Should I just bite the bullet and pay off her student loans now in one swoop? Is there any tax benefit? I'm making about $150k/year now if it matters. My wife does not work.
Thanks.
She doesn't work? What'd she get a degree for?
If you're newly married I'd wait at least 5 years before you pay off her loans. Have her work to pay off the interest once the deferment runs out. After the 5 year point it can be either an anniversary gift or part of a divorce settlement where she takes half of your nest egg. Hopefully it's the former...