Ethical financial dilemma, looking for validation.

My husband has $100k in student loans that he took out before we were married. $40 federal, $60 through Sallie Mae which his parents have cosigned on (no cosigner on federal, just SM). He was just diagnosed with cancer and will be taking at least 6 months off work to get chemo and surgery, with 66% pay on a combination of short and long term disability. Since he pays for our health insurance, this means he will only be bringing home a $3-400 per month while on disability which he will need to pay for medications (instead of about $1,600). His prognosis is very good, and we expect a full recovery and return to work in August or September 2016. We got a deferment on his federal loans but his SM payment is $570 per month and he is trying to get family to help pay it.

Thankfully, we live frugally and I make decent money, so I'm able to pay all the household bills, just NOT his student loans without taking on more debt.

My dilemma is this. I should be able to cover our out of pocket max, some medication AND save a little money towards the end of this year to pay for next year's out of pocket medical expenses ($3-5k). Since he will need ongoing cancer care even after we kick this tumor's ass.

Even though I might be able to help pay part of the student loan bill instead of replenish our emergency fund for next year's medical expenses, I don't want to do that. The house is in my name, we have separate bank accounts, nothing joint and we don't live in a community property state. As I understand it, I'm not on the hook for these student loans at all and they can't touch our assets since they are all in my name. I feel the most immediate need is making sure we have money for ongoing treatment, not paying SM.

Worst case scenario is he defaults and they go after his parents, or take his STD payments. Am I being a selfish prick to say, I don't really care what happens to his student loans or if his parents have to pay them. I only care that we have a roof over our heads, beans and rice for dinner and the ability to pay for lifesaving cancer drugs? I just feel like my plate is full already (we have an almost 3 year old daughter) and I can't take responsibility for $60k in debts that aren't my responsibility.

I feel bad having him ask his family for money to pay these when I could take a home equity loan, but that would be financially ruinous for me and I'm not legally obligated to do this. I feel like his extended family ought to help protect his paren ts, or his parents should pay them since I'm taking responsibility for everything else. Thoughts?

TLDR: Husband's parents cosigned on $60k private student loans and he was just diagnosed with cancer. Am I an asshole for not caring what happens to these since I'm taking care of everything else right now? I don't want to pay a penny of them since I think we'll need to money next year for medical bills.

EDIT: The consensus is, while my situation really sucks, I should do more to make sure these loans get paid. I am kind of being an asshole and default will affect me by possibly garnishing my husband's wages. We decided to buckle down more, I took a forbearance on my loans and our family has offered to provide free childcare for the next few months. This way, we aren't asking for money and we should be able to afford to make these or reduced payments for a short time. Husband is going to call Sallie Mae today and negotiate. Default and or bankruptcy is still possible but less likely and we will definitely give his parents and family a warning if Sallie Mae won't budge on the payments. Thanks Reddit for being my sounding board!

Posted Feb 21, 2016, 8:43 PM UTC · edited

723
Loading comments…