Fiancee Debt

[RitchesToRags]

I am recently engaged to a girl with an unusual situation. She has 115k in private student loan debt (variable rate, currently at 5%) and is unable to work because she is not a US citizen. The interest rates are low now, but as I said, they are variable and at one point were as high as 13%.

I make 90k per year and am debt free. Getting married will give her the ability to work so we can be together and start paying down her debt. However, I'm a bit freaked out about the amount of debt she has, and am concerned about how things are going to work out.

How do I handle this situation? I plan on helping her to pay the debt, but I'm concerned about the possible outcomes like if she isn't able to find a job right away, or a decent paying one at that. With my salary can I even afford to take on this much debt? I live in the middle of a big city so the cost of living is not the cheapest, but I'm willing to save where I can. Anyways, I love this girl and totally trust her, but I am really scared of her debt and employment situation. How much hardship is this debt going to cause us? I've never had debt and just don't know what to expect. Any advice or insight on this situation would be appreciated, thanks!

[creditcardfree]

I can completely understand why you are worried. That is quite a bit of debt.

Since you trust her, it is simply important that you both be on the same page about how to attack this debt. In my opinion, it should be your first priority over buying a home or new furniture. If you are able to live on your salary, it seems that any money she makes should be put entirely on the debt.

What is her earning potential? If she has a degree, you should have some idea of what she could make when she works. This would then give you an idea about how long it will take to pay off the debt. The sooner the better with the variable rate.

It is also important to have an emergency fund, so that you can dip into it should the need arise while paying of this debt.

[jIM_Ohio]

You need to trust her or the marriage will fail. Money aside, trust in a marriage is really important.

115k might be alot, it might not be... if your soon to be spouse gets a 50k salary (for example), and you can already live on your wage alone (90k), that debt can be attacked pretty quickly. Even if your spouse gets a 20k per year job, that debt is gone in 5 years on a salary like that.

Don't focus on the minimum payments... focus on getting spouse a job (even at minimum wage) and send all that money to the debt- problem gets solved quickly then.

If working in USA is an issue, maybe she could run a home based business in your name until she can legally work for an employer?

[neatdesign]

Originally Posted by RitchesToRags

I am recently engaged to a girl with an unusual situation. She has 115k in private student loan debt (variable rate, currently at 5%) and is unable to work because she is not a US citizen.

The fact that she's not a US citizen does not automatically mean that she cannot legally work. There are millions of non-US citizens who are legally permitted to work in the US.

She's in the States, so she must have some kind of status. Does she hold a visa (such as an H-4) which prohibits employment in the US? If so, what kind of visa is it?

Her immigration status is something you'll want to look into because it can affect your marriage down the line. For instance, if she's here temporarily on a visa but will have to eventually return to her home country, then you'll need to know what options are available in order for her to (hopefully) remain in the US with you.

Originally Posted by jIM_Ohio

If working in USA is an issue, maybe she could run a home based business in your name until she can legally work for an employer?

Legal work authorization is all-or-nothing: She either has it, or she doesn't. So if she's unable to legally work in the US, then it's illegal for her to do what you suggest, and doing so could have a negative affect on her immigration efforts down the line.

~ Jenney

[RitchesToRags]

creditcardfree -

She has a degree, I don't think 40-50k would be an unreasonable estimate. I've been working for several years and have some decent savings, which of course I originally intended for a house, and I have an emergency fund. I'm a little uncomfortable with throwing everything I've saved on my own at the debt right off the bat, but I'm resigned to that fact that it might make the most sense long term considering the size and interest rates. It's definitely going to be our first priority over any other purchases, well, with the exception of a minimalistic wedding

jim_ohio -

Yes, we will be able to live on my wage alone and all of her salary will be going towards the debt. The situation isn't as dire as her needing to run a home business, she is bringing in some income on her own and has some help from family right now, but it is all going towards her living expenses so it's negligible with respect to the debt. I would hope not to have this debt for even close to 5 years, it would be holding us back from having a home and kids, but I guess ultimately her job and our commitment will determine that.


Thanks for the thoughts!

[neatdesign]

Originally Posted by RitchesToRags

Yes, we will be able to live on my wage alone and all of her salary will be going towards the debt. The situation isn't as dire as her needing to run a home business, she is bringing in some income on her own ...

So she DOES have legal work authorization?? Why did you say earlier that she couldn't work?

~ Jenney

[RitchesToRags]

neatdesign -

No, she cannot work. Her visa expired, thus the dilemma. We are already in the process of looking for lawyers to discuss our options with.

When I was referring to her salary going towards the debt, I was referring to her future salary after we are married and she is able to work.

[LivingAlmostLarge]

Depends on what you really consider important. I agree with Jim, trust is imperative.

To me it's just money. But it depends on how you approach the $115k in debt and what your feelings are about it.

[Mike75]

Money is the number one relationship-killer today. So, I would recommend that before you get married and start a life together, sort these money situations out. Don't start of at a bad note.

[jIM_Ohio]

Originally Posted by neatdesign

Legal work authorization is all-or-nothing: She either has it, or she doesn't. So if she's unable to legally work in the US, then it's illegal for her to do what you suggest, and doing so could have a negative affect on her immigration efforts down the line.

~ Jenney

Put business in husband's name for tax reasons, and then funnel all income thru husband's SS.

I know people which do this to get a SS surplus in one spouse name because the other spouse will never be able to collect SS.

If its a family run business, the lines become grayer if all money is funnelled thru one spouse.

[ceejay74]

If you can put her entire income toward it, it'll be gone in no time. I wouldn't be too worried about that.

What I would worry about is the expired visa. I have friends who married with one on an expired visa, figuring they could work it out later. Now he is stuck back in Africa and she is raising their son here in the U.S., alone. He can't even visit because he messed up his standing with the U.S. She can't afford to visit him very often, either. It's terrible because it was procrastination and disorganization, not malice or any desire to break the law, that got them in the situation. And yet as a wife of a resident alien, I know that you have got to play by the rules if you want your family to stay together.

Put your energy into figuring that part out first!!! Good luck!

[neatdesign]

Originally Posted by jIM_Ohio

Put business in husband's name for tax reasons, and then funnel all income thru husband's SS.

I know people which do this to get a SS surplus in one spouse name because the other spouse will never be able to collect SS.

If its a family run business, the lines become grayer if all money is funnelled thru one spouse.

It has nothing to do with taxes or finances or Social Security and everything to do with her immigration status and whether she's got legal work authorization from USCIS (U.S. Citizenship and Immigration Services). If she has legal work authorization -- such as with an I-515 card (green card) or I-765 Employment Authorization Document (EAD) -- then your suggestion is fine. But otherwise she would be breaking the law and her immigration status would be at risk.

It doesn't matter who the employer is -- whether she's self-employed or employed by someone else, work is work. And working without legal authorization = illegal. It's that simple.

From what the OP has said, his fiancee's visa has now expired, which means any work authorization that stemmed from that visa is now also invalid. Working illegally is not looked upon kindly by the government, and attempting to circumvent immigration law (which is what you're suggesting, unknowingly I assume) won't help matters if she's caught. She could potentially be deported and even face a ban from the US. It's bad enough that she didn't leave before her visa expired, but working illegally can only compound their problems.

On the immigration side of things, I strongly recommend that he and his fiancee become very familiar with the process to adjust her status to legal permanent resident (aka, get a green card) based on her marriage to a US citizen (him). Depending on their particular circumstances, it could be an on-going part of their lives for the next 3-5 years.

Please note that I'm not a lawyer but I've been bouncing around the marriage-based immigration world for about 8 years now, starting with when I petitioned a K-1 fiance visa for my now-husband. I'm basing my comments on my own personal experience as well as the thousands of posts I've read on immigration forums over the years.

The best forum by far -- which I recommend to the OP -- is the Marriage-Based Visas forum over at BritishExpats.com. You don't need to be British to join or participate, it's open to everyone. The people over there have helped us tremendously, starting with my husband's K-1 visa all the way to his US naturalization in 2008, and we couldn't have done it without their support and understanding.

~ Jenney

[neatdesign]

Originally Posted by ceejay74

If you can put her entire income toward it, it'll be gone in no time. I wouldn't be too worried about that.

What I would worry about is the expired visa. I have friends who married with one on an expired visa, figuring they could work it out later. Now he is stuck back in Africa and she is raising their son here in the U.S., alone. He can't even visit because he messed up his standing with the U.S. She can't afford to visit him very often, either. It's terrible because it was procrastination and disorganization, not malice or any desire to break the law, that got them in the situation. And yet as a wife of a resident alien, I know that you have got to play by the rules if you want your family to stay together.

Put your energy into figuring that part out first!!! Good luck!

Ceejay, I totally agree. Immigration can be very complicated, especially for those caught off-guard by it. It's not unusual for couples to assume that things will just fall into place and then make innocent mistakes that screw everything up -- such as leaving the country before the foreign partner has secured a legal status in the US which allows reentry. (Remember, immigrants can always leave the US -- it's the getting back in that can be troublesome!)

The good news is that US immigration is doable, but it does take a thought of organization and forethought. Also in the OP's favor is the fact that he seems to earn enough to meet the minimum financial requirements for sponsorship of her green card and also enough to afford the immigration application fees. The sooner they can get her status resolved, the sooner they can get her working and paying down that debt.

~ Jenney

[maat55]

If i'm not mistaken SL debt is personal debt. If you are married, I would have her work and use all of her earnings to pay down the debt, I would not use any of your existing savings.

If your marriage fails, she walks with her debt. While you are married, it is both of yours debt.

[ceejay74]

Another great, valuable site for binational couples is visajourney.com. I totally owe that community for helping me through several confusing and scary moments, including a request for more evidence.

[Mike75]

Originally Posted by ceejay74

If you can put her entire income toward it, it'll be gone in no time. I wouldn't be too worried about that.

What I would worry about is the expired visa. I have friends who married with one on an expired visa, figuring they could work it out later. Now he is stuck back in Africa and she is raising their son here in the U.S., alone. He can't even visit because he messed up his standing with the U.S. She can't afford to visit him very often, either. It's terrible because it was procrastination and disorganization, not malice or any desire to break the law, that got them in the situation. And yet as a wife of a resident alien, I know that you have got to play by the rules if you want your family to stay together.

Put your energy into figuring that part out first!!! Good luck!

Yes, I think you are right. I am very sorry about your friends and sincerely hope that he comes back and the family is reunited.

[Beppington]

Originally Posted by RitchesToRags

I am recently engaged to a girl with an unusual situation. She has 115k in private student loan debt (variable rate, currently at 5%) and is unable to work because she is not a US citizen. The interest rates are low now, but as I said, they are variable and at one point were as high as 13%.

I think you should make another thread, a poll, asking "Could you commit to a person $115K in debt?"

I kid.

[RitchesToRags]

Thanks for all the tips. I'll be checking out some of the other forums you guys mentioned!

Originally Posted by neatdesign

It doesn't matter who the employer is -- whether she's self-employed or employed by someone else, work is work. And working without legal authorization = illegal. It's that simple.

That's the part that scares me the most! We are looking for a good lawyer who can answer all of our questions and determine what the implications of this are.

I'll keep you guys posted on what ends up happening.

[frugalgirl]

You've gotten so much good advice.

Just a cautionary tale for you:

A good friend of mine went into a marriage with a home she owned and a fiance with $90k in student loans. They sold the house at a huge profit when they moved and used the equity to pay off his loans- not to put down on the new house. Long story with too many details but bottom line is they are now divorcing and she is not going to be able to ever get that money back.

[Bluezy]

Don't marry until she pays off her debt.