lhslancers Posted May 14, 2007 Report Share Posted May 14, 2007 My daughter wants me to co-sign a student loan. In general other than the obvious possible lates no pays down the road what other ramifications are there to me. Does this count as me taking on new credit and should it effect my score? Link to comment Share on other sites More sharing options...
Ahntara Posted May 14, 2007 Report Share Posted May 14, 2007 Co-signers are 100% liable for the full balance of the loan. The debt will be included in your DTI calculations and will appear on your CR. Link to comment Share on other sites More sharing options...
momof5 Posted May 15, 2007 Report Share Posted May 15, 2007 For my daughter, I paid her SL and had her send me the payments she would have made otherwise....this way, if she has a financial problem it does not affect me! Link to comment Share on other sites More sharing options...
lhslancers Posted May 15, 2007 Author Report Share Posted May 15, 2007 For my daughter, I paid her SL and had her send me the payments she would have made otherwise....this way, if she has a financial problem it does not affect me! If things were different I would have no problem with that. However her mother has the marriage house fully paid for the past ten years by me. I pay for college and child support for two other children as well. This 15K loan is for a one semester jaunt in Merry Old England. I smell a HELOC is her mother's future. I'm broke. Link to comment Share on other sites More sharing options...
momof5 Posted May 15, 2007 Report Share Posted May 15, 2007 GEEZ! I would tell DD that my name is not Santa Claus!Most courts don't require that you pay for college for your children and when you do, you are usually held to state tuition levels.My DD attended Community College(nursing). When things got rough, she joined the US Army. She is now a combat medic - studying for her nursing degree at the expense of the US Army. DS joined the US Army first because he agreed that he wasn't ready for college.DD2 is looking a full scholarships for here academic career.(DS2 is doing construction and DD3 is only 14)College is not a right. I told my kids years ago that they needed to go to college but I was not paying for it! Nobody paid my college, I am not paying yours! eta: I am a single mom and I am owed over $100K in child support that I most likely will never see! Link to comment Share on other sites More sharing options...
CantCU Posted May 15, 2007 Report Share Posted May 15, 2007 My daughter just graduated college, so here are a few things I learned about student loans.If the student is using "federal student loans" there is a specific way to complete the application that if the co-signer is not approved that the student would get the additional monies in an unsubsedized student loan. How old is your daughter? If within the first couple of years of college (or a certain age, I'm not sure) there is what is called a parent Plus loan. If your credit is such that you would not get approved for the parent plus loan, then your daughter would receive the money herself (and have to pay it back herself) as unsubsedized loans.I know nothing about private student loans.Word of warning...if your credit is "decent" you will be approved for parent plus loans. It's a crap shoot, and you have no way to know when you apply. My score was not nearly as high as it is now when I got approved for a parent plus loan...can't tell you exactly what the score was.If ex wife's credit is bad, let her sign for the parent plus loan...if she's declined, then DD will still get the money and no one else is on the hook for the repayment.My advice? Contact the financial aid office of the college where your daughter is attending and look to them for guidance. They can be your best friend when it comes to student loans. Link to comment Share on other sites More sharing options...
CleverCynic Posted May 16, 2007 Report Share Posted May 16, 2007 You should know that your daughter's entire world is mandated by the fafsa's calculation of EFC, standing for EXPECTED Family Contribution. If she is 25 or under and not Emancipated legally, it will restrict her borrowing ability in every way. Our culture pre-supposes an implied contract between us and our children. Her school sends the forms, you sign them, she goes to school as planned. The only way she can get around this is for you to challenge each other in court and she would need to prove abandonment. It is a lengthy and embarrassing (to most people) process that is unlikely to succeed in the end. If you truly cannot afford it with any level of sacrifice, her EFC will be 0 and she should be able to receive federal loans sufficient for a state school, but not necessarily private. If she wants to go to a private school, unless its for a doctoral or masters program, I would say you're comfortably off the hook provided she has a state school option. Otherwise, SIGN! Link to comment Share on other sites More sharing options...
lhslancers Posted May 16, 2007 Author Report Share Posted May 16, 2007 Thanks for all your responses. This is one of those unfortunate situations that arise in divorce. I already pay much more than the law mandates for support. Ex worked the guilt angle for all it was worth and the agreement we have doesn't even include her income for child support calculations, which is mid 5 figures. I pay for college at least partially. This loan is for one semester in England. Not really necessary and is something I probably wouldn't approve of if I were still living there. Link to comment Share on other sites More sharing options...
CleverCynic Posted May 16, 2007 Report Share Posted May 16, 2007 No, studying abroad is like horse camp for the summer, expensive and unnecessary. It sounds like a really cool opportunity for an elite and she's likely to pitch a fit, but it will not put her at a competetive disadvantage like choosing between having a college education or not. I don't think you can really quantify any definable return difference on a loan of that nature. She can go to Europe when she graduates and gets a good job! Link to comment Share on other sites More sharing options...
lhslancers Posted May 16, 2007 Author Report Share Posted May 16, 2007 No, studying abroad is like horse camp for the summer, expensive and unnecessary. It sounds like a really cool opportunity for an elite and she's likely to pitch a fit, but it will not put her at a competetive disadvantage like choosing between having a college education or not. I don't think you can really quantify any definable return difference on a loan of that nature. She can go to Europe when she graduates and gets a good job!Hey one year down at FSU 25K for out of state. Don't like it. Next year Rutgers. Like it or not.More than I had. Link to comment Share on other sites More sharing options...
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