Current law forbids separating the consolidated student loans. This leaves people at the mercy of a former spouse for years.
Why is this important?
Years ago when my husband and I went to a financial advisor, he recommended we consolidate our student loans. Now we are going through a divorce. My soon to be ex has stopped paying all of his bills, including his portion of the student loan. I cannot afford to cover his portion, so his lack of payment is destroying my credit. A quick internet search lead me to many similar stories.
These loans are no longer allowed due to exactly these kind of issues. However the law also prevents the separation of these loans. I would happily pay back my portion, even at a higher interest rate.
Student loans should be allowed to be returned to separate loans so one spouse cannot ruin the credit of the other even years after a divorce.
