Ability of guarantying student loans in the future involving discharge of gvt. debt

[Mik3]

If I file BK now that includes discharge of of Government backed debt (SBA loan), will I be able to guarantee student loans in the future for my children?

Thanks

[tobee43]

no, what will happen is this:

the school will tell you to apply for the grants or loans and then you will be denied for the bk. it is then your child will have to apply solely for the loan based on the denial of your application. they will get the loan, but it will be in their name and they will sign all the guarantees associated with the responsible of pay back, not you.

[bcohen]

Under NO circumstances should you ever co-sign anything--especially student loans! If your children want to go to college, they should apply for financial aid, and take out federal loans in their name alone. If you co-sign for student loans, then if for whatever reason your kid(s) can't/don't pay, you will face lawsuits, judgments, and collections action which even bankruptcy cannot stop.

Tobee has excellent advice. Immediately before your kid(s) go to college, you want to trash your credit so that student loan lenders won't accept you as a co-signer. Filing for bankruptcy within a year of their high school graduation is an excellent idea! Since you won't be co-signing, the university will offer additional grants or loans in the student's name only.

Also, if they wait until age 25 to go to college, then your income is not taken into consideration, and there is no expectation for you to co-sign anything. I remember when I graduated from high school in 1997, and I wanted to go to college at that time, but we could not afford it, and my parents could not pay the "expected family contribution" especially since I have 4 brothers and sisters. Fast forward to 2009, when I decided to go to college, by then at the age of 29, and my parents' income is no longer requested or expected to be contributed, and I can get financial aid in my name alone. In fact, between the federal and state grant money, I only have to pay about $2000 per semester, and I can get a subsidized federal loan for that.