<p>Do parents understand that in order for a student to get a private loan, a co-signer is REQUIRED. A lender won't even glance at an application from a 19 year old with no credit score. You co-signing is necessary. It is my loan (as a student) and not my parent's. Is co-signing that big of an issue?
Please shed some light on me as to why my parents are so against co-signing for me!</p>
<p>Because it means they are basically taking on that debt obligation THEMSELVES. They have to face the very real possibility that THEY will be making the payments if you can’t. If they are not willing to take that risk, they shouldn’t co-sign. </p>
<p>but I’ve offered to get a loan that drops them as cosigners after 12 consecutive payments…</p>
<p>Sorry…but we also refused to cosign loans with our kids. We didn’t want to assume that they would make the payments…even for 12 months…and we did not want a loan on our credit score rating.</p>
<p>It’s a big BIG deal to me. We are older parents already. We are not indenturing ourselves for the next 30 years to pay off some school loans. It’s not possible, as there is no guarantee we can work for several more decades. I’ve read some horror stories. One was about parents who lost their house after their daughter had some serious illness and then died. They were still obligated on the non-dischargeable school loans. I just read one last week about a 77 year old who can never retire because she co-signed for a granddaughter, and the granddaughter couldn’t find a job after graduation and fell behind, leaving grandma to work until she dies to pay off these loans.</p>
<p>No. Not doing it. We did plan ahead, and have some assets that will provide some significant funding and possibly even all, if they earn merit money and do it all correctly, but they have to take it from there. </p>
<p>Remember, if ANYTHING happens to the kid, God forbid, you are financially obligated to meet that payment no matter how large and how long.</p>
<p>Most parents will not co-sign.</p>
<p>as for finding a private loan that will drop the co-signer after 12 consecutive payments, there is risk to that, too. There is a parent here who co-signed that type of loan thinking they’d be taken off after child made consecutive payments…BUT…the loan was sold to a third party (banks OFTEN do this)…and suddenly that rule went bye bye…and the parent is on the hook forever.</p>
<p>It is not just YOUR loan. YOU can’t qualify. YOUR parents are the ones who are qualifying. It is THEIR loan, too.</p>
<p>Most parents will not agree to co-sign.</p>
<p>How much do you want to borrow EACH year with a private loan (in addition to fed student loans)?</p>
<p>How much will your student loan payments be (both private and fed) each month?</p>
<p>What is your intended career? How much will you be earning upon graduation? </p>
<p>what will happen if you don’t get a great job after you graduate? How will you make the payments?</p>
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<p>The only way that I would consider ever cosigning anything – a student loan, a mortgage, a cell phone, a car loan – is if I were personally comfortable that I could take over and pay off the entire loan myself if need be. If I don’t have that knowledge – and many parents don’t – then I won’t consider it. I think that’s a good philosophy and probably what a lot of parents are thinking when their kid comes to them with some crazy scheme like this. 12 consecutive payments could be thousands of dollars – what if something happened to you temporarily and you had a tough time paying off the loan? </p>
<p>Don’t take this as a personal thing – it’s not that you are some kind of bad person or anything. It’s just that cosigning is a big risk for parents and it is too often an unnecessary risk.</p>
<p>It is likely that the ‘12 consecutive payment’ is a policy of that lender, NOT written into the contract. Loan is sold, policy of the lender changes, bank fails and a regulator takes over? SOL.</p>
<p>"co-signer’ means equal responsibility for the debt. You might be able to get a larger government loan if your parents are unable to qualify for a PLUS loan.</p>
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It is likely that the ‘12 consecutive payment’ is a policy of that lender, NOT written into the contract. Loan is sold, policy of the lender changes, bank fails and a regulator takes over? SOL.</p>
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<p>That could be. The parent who had this situation was very pleased with what she likely thought was part of the co-signed contract. She wasn’t happy to learn that when her child’s loan was sold to another entity that “benefit” disappeared. </p>
<p>I appreciate all the feedback, but honestly, the loan is necessary to pay for my education. Government loans won’t cover it and my parents won’t take out a plus loan, so a private loan is the only option. I’m not asking them to pay a dime or take a loan out themselves, just cosign (which I know, is a loan for them too, but in actuality, it’s mine). Without that signature I can’t get a loan, therefore I can’t go to college in 2 weeks (which they previously agreed to sign). I suppose I don’t see how it is such a horrible investment for them to make.</p>
<p>Have you ever had a loan? For a car, for college, for something you wanted and your parents lent you the money? I bet your parents have had loans for all those things and know how hard it is to make payments regularly. You say you will make the payments beginning IN FOUR YEARS, but how do you know you’ll be able to? The bank knows that it is unlikely you will be able to make those payments, and that’s why they require a co-signer with a proven credit history. By the time you start payments, the interest will have accrued, you may have other loans you’ll need to start paying, you’ll probably want a car.</p>
<p>Sorry, you aren’t going to convince any of us that your parents are obligated to cosign for you, or even that it’s a good idea. We are mostly parents who won’t sign the loans for our own kids.</p>
<p>Most parents will NOT cosign loans…and yes, they are the parents’ loans because it is THEIR signature and THEIR credit is what is qualifying that loan. Your pretty face is doing nothing to qualify for that loan.</p>
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<p>Well, you’re going to have to come up with Plan B. Later on, when you’re paying back your federal Direct loans and finding THOSE to be a huge hassle, you’ll look back and be grateful that you don’t also have to pay back private loans. Your parents are doing you a favor. Likely, they have looked into the details, have seen how THEIR FICO scores will take a hit, maybe they know that THEY will need to borrow in the future for a car or something, and they can’t take the FICO hit…and they’re worried that your future career won’t pay enough to pay back those loans.</p>
<p>How much were you going to borrow with this cosigned loan? How much total by the time you graduate? </p>
<p>What school can you attend that you can commute to from home?</p>
<p>What is your major and career goal? how much will you be earning upon graduation? </p>
<p>You can’t go to college in 2 weeks, or you won’t be able to commit to a college in 2 weeks? If the former then you did not have a proper conversation with your parents. If the latter, you must have other options.</p>
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I can’t go to college in 2 weeks </p>
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<p>??
did you graduate early and starting in the spring?</p>
<p>Or are you transferring from a CC?</p>
<p>Either way, spring admits get the worst aid, so perhaps you should be applying for Fall anyway. </p>
<p>What is your FAFSA EFC?</p>
<p>Look, I’m going to be very frank here. If your parents won’t cosign a loan, and you don’t have the cash to attend, this college is NOT affordable.</p>
<p>You don’t see why this is an issue? Well…it’s not YOUR money you are spending.</p>
<p>How much loan money do you need? </p>
<p>It is very likely that your parents expected more financial aid than you got, or have had second thoughts about this debt.</p>
<p>Private loans are expensive. I wouldn’t take one out either.</p>
<p>But your only choice is to talk to your parents. They are making the money decisions…not anyone here. </p>
<p>That being said…we advised our kids to have no loans beyond the Direct Loans. none.</p>
<p>Surely you can find an affordable option. Is this an ED acceptance with insufficient aid that you want to commit to in two weeks? Or are you actually planning to move to college in two weeks to attend?</p>
<p>I wish the poster would provide more info:</p>
<p>are you a transfer?
what school is this?
How much would you borrow each year?
what is your major
what is your career goal
What schools can you commute to?</p>
<p>For anyone that has already co-signed a student loan – I would make sure to have term life insurance on that student. That would offer some ‘protection’ on the financial exposure you already have. As others have said, until the debt is paid off, co-signer is also financially on the hook.</p>
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<p>Two weeks!? Are you saying that you’re going to college in two weeks??</p>
<p>Hmm, now I am concerned that this student got accepted to a school and enrolled for Spring term and is trying to use this proximity in time/deadline as a lever to pressure the parents into cosigning a loan quickly. That’s a pretty big gamble in any case.</p>
<p>Honestly, that’s not looking too good for you. You should have worked this out with them long before this.</p>
<p>One other option that you might take – does your school have an installment payment plan? I find that those are cheaper than loans and may help covering the gap more manageable since you don’t have to pay it all off in full.upfront or deal with the onerous interest on a student loan after graduation. I would check that out and see if your parents are more comfortable helping you with those payments than with a student loan which frankly as other posters have mentioned would be a bad idea for them.</p>
<p>are you a transfer? YES
what school is this? BELMONT UNIVERSITY
How much would you borrow each year? AROUND $35,000
what is your major AUDIO ENGINEERING
what is your career goal NOT SURE YET
What schools can you commute to? NONE, I LIVE IN THE MIDDLE OF NOWHERE.
(sorry if the caps lock seems like I’m yelling, I’m not)</p>
<p>I am transferring from a 4 year school to a different 4 year school. This school is a much better school for my degree. It is a lot more expensive, but I know it will be worth it int he long run. I will have a better education, more experience, and more networking opportunities. Plus, I will be learning on the equipment that its used int he industry rather than outdated technology that isn’t used anymore at my old school.</p>
<p>and to answer mom2collegekids, I applied to this school in October and informed my parents of the finances it would take. They then agreed to cosign, so I officially withdrew from my school. Now, I go to school in 2 weeks and they have started to say that they don’t want to cosign - after I’ve withdrawn from my university and have no other options for spring semester.</p>