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Debts, Divorce, and Student Loans

BY Mark Momjian
March 04, 2004

Increasingly, family lawyers are encountering property division cases involving the equitable distribution of student loans or claims seeking equitable reimbursement for funds spent on higher education during the marriage.

The statistics regarding tuition increases are staggering. According to the College Board's most recent annual survey on trends in college pricing (www.collegeboard.com), for private colleges, the average cost of a 4-year program, including room and board, is $78, 840. The average figure for in-state public universities is $18,776.

Young couples who borrow money for school after they are married are finding it difficult to save for future goals, such as retirement, due to the debt service on their student loans. However, because interest rates on federal student loans are relatively low, married couples may have more flexibility in managing this debt service, even allocating their disposable income toward other payments, such as high-interest credit card debt.

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