Cosigning Student Loans..BAD!!!

[DaisysMom]

I just read this on the ABC News site. It is further proof why you should never, ever co-sign for any loan. Especially Student Loans.

Student loans are the roach motel of debt. They are almost never discharged in bankruptcy. Banks and colleges know that repayment of these loans is the third certainty in life—after death and taxes. While there are efforts afoot to reform current bankruptcy law to make student loans dischargeable, lenders aren't terribly concerned because they have an alternative. According to one report, 90 percent of student loans have cosigners (i.e., for every kid who escapes the hook, there is a parent dangling on the line).

The entire article can be read here. It is very informative showing how the cost of college has made dramatic increases and how the loans to attain the education can be crippling for life.

http://abcnews.go.com/Business/student-loan-slow-jam-time-national-service-corps/story?id=16273596&page=2#.T6U-yVLWZDg

Hope it was OK to post the url> DM

[pamkev]

Your right as I'm one of those parents. Never ever again and I should have listen when others said don't do it but I listen to a financial person at that time don't think they are in business anymore . Pam

[kornellred]

Most parents will do anything possible to help their children get ahead. The bad thing about student loans is that they are usually really large amounts, and quite frankly, the value of a lot of higher education outside of scientific disciplines is questionable. It can't hurt to obtain a college degree, but there is a lot to consider. For a lot of young people, college is a place holder while they try to figure out what it is they really want to do.

[DYLAN150]

I co-signed one time for my son when he was about 20 years old for a motorcycle. Big mistake. I ended up paying for the motorcycle and I sold it later on. I would never co-sign for anyone again.

[Flamingo]

Think of what co-signing actually means - it means the person that applied for the loan does not qualify for the loan by himself/herself - it has to be guaranteed by another qualified person. One must also understand that if the party getting the loan cannot make the payments, guess who is going to make the payments. Don't co-sign for anyone if you cannot afford to make any of those payments no matter how bad the sob story.

[TheBajan]

I also took out a student loan for our daughter to the tune of $15K. She dropped out of college after her freshman year and we got stuck paying the bill. Never again.

[DaisysMom]

Yeah...I just read that student loans cannot be discharged unless you have proven "undue hardship" which is very very difficult and expensive to do. Co-signing anything is just a terrible idea.

DM

[btbeme]

Ever notice how a finance company will come running - RUNNING - back to the table once you have found a co-signer?

Ever wonder why?