How to Plan Your Dream Wedding With Student Loans

Today I have a guest post from Herman. Herman Davis enjoys being active and finds any reason to go outside and explore the wilderness. If you can’t catch him online, you might be able to catch him at the gym or cheering on the Boise State Broncos and Arizona State Sun Devils. Follow him on Twitter at @Davis241.

Although the words “I do” are easy to say, those two little words signify big changes — changes that involve lifetime commitments and two people coming together as one. Unfortunately, when you add student loans into the equation, things can get really complicated.

That’s why a lot of millennials have chosen to delay certain milestones like marriage: They’re overwhelmed with loans and don’t think they can afford it. While this might seem like a good idea at first, putting certain achievements on hold can also delay other milestones in your life, like parenthood.

It might seem like a major sacrifice to live a debt-free life with your significant other, but in reality, it’s not really necessary. That’s because you can still plan your dream wedding while still paying off student loans.

According to Business Insider, the average cost of an American wedding is about $30,000. However, there are still a lot of couples out there that find ways to spend less than $10,000 on their wedding.

How? By networking and using different resources that can help lower your wedding costs so you and your spouse don’t go over budget for the big day. With that being said, if you’re thinking about getting married, but fear that student loans could get in the way of things, consider the following:

Budget Your Finances

Once you’re married, your personal budget will soon turn into the family’s budget, but you don’t have to wait until then to get the ball rolling. With the vast majority of college graduates today, collectively owing more than $1.45 trillion in student loans, setting financial expectations as a couple is key to stop arguments from happening. In order to do this successfully, however, you both need to create a budget plan that takes all your needs into consideration.

You can do this by sitting down at the dinner table and looking at your combined income so that you know how much you have to work with throughout the upcoming months. What are some things to consider when creating a budgeting plan? Take a look at your savings accounts, monthly utility bills, and any debt payments you both have.

You might also want to think about how you can combine both of your expenses together. Finding answers to these questions will help you both design a realistic plan towards saving for your wedding.

Related: Smart Ways to Save on your Dream Wedding

Consider Refinancing

If you’re battling with multiple loans and can’t manage the interest rates (or payments, for that matter), think about refinancing your loans. Refinancing some of your loans can combine multiple payments into one smaller payment. It can also help lower your interest rate, which helps you save money in the long run.

After you’ve refinanced, you can continue paying the same amount of money (as long as you can still afford it) towards your loans or set aside the extra cash for your wedding.

If you choose to refinance your federal loans, understand the impact it could have on your monthly payments beforehand. In this case, you’ll want to do a side-by-side comparison of your repayment terms to see if it’s really worth it. Whatever you decide, just make sure you don’t let the money go to waste.

Prioritize Your Loans

Although weddings are way more fun than student loans, the truth is, weddings only last for about seven hours. Student loans, on the other hand, last much longer than that. It’s true, weddings are a once-in-a-lifetime event, but you don’t want to go so far over your budget that you can’t afford your monthly payments.

This could hurt your credit score and even result in you owing more money than you expected to your loan provider from late fees and higher interest rates.

So, to reduce certain costs from your wedding, consider going with some less expensive services: hire a college photography student to take your wedding pictures, DJ the reception, or ask a designer student the help you with the floral arrangements. Instead of using a full bar service, you can just add a few signature drinks for guests to choose from. Remember, things like flowers, formal invitations, and high-end furniture aren’t required to make a wedding spectacular.

Cutting back — or even cutting out — some of these things can save you thousands. In short, you shouldn’t go into your marriage with additional debt; instead, you should use your marriage as an opportunity to improve spending habits. In order to benefit from this, however, you’ll want to practice prioritizing your finances early on.

Related: Creating a Student Loan Debt Plan of Attack

Plan for the Unexpected

Whether you’re saving for a wedding or trying to pay down your loans, you’ll always want to plan for the unexpected. For some couples, this could mean a reduction in work hours or pulling from their budget to fix their car. So, before paying any vendors you might want to work on the day of your wedding, apply a little extra towards your savings goal.

You also want to check and make sure your account can handle an emergency, such as unexpected illness, job loss, or additional loan payments. Having this financial peace of mind can go a long way when it comes to having the perfect wedding. This means that you can have the outfits, the guests, the venue, and the kiss without sacrificing your financial future.

Related: Why Do You Need a Full Emergency Fund?

Emergency Fund Tips: How to Grow Your Account Fast and Where to Start

***Learn more about planning your dream wedding on a budget

***Check out my frugal wedding series here for more tips!

Thanks for the read! Did I miss anything important? What are some ways couples can manage students loans and wedding planning? Feel free to leave a comment below.