We Cosigned Our Unemployed Son’s Student Loans. Now We’re Screwed

[CollectivSynergy]

MiamiDAP - Actually, I can say definitively that doing IT in a bank is less complex, largely because you're just incrementally tinkering within a massive system (which, even if you're doing a complete overhaul, means you have huge amounts of manpower to work with within the firm). For a startup, you need to be a lot more adaptable and a lot more experience with different languages and systems off the bat.

That aside, a lot of us do know salary information because people either slip during drinking, brag about it, or give ball-park comparisons which are not as subtle as they think they are. Also, the compensation structures of most of the well known firms are common knowledge.

[romanigypsyeyes]

Gotcha, cs. That makes sense.

[littlemisschic]

That's terrible I feel sorry for his parents! they shouldn't have to pay the debt he racked up. He just seems lazy, go get a job and pay your own loans back!

[europegrad]

I think some co-signing is okay, but only to a level that parents can take the hit.

[Mamadubbs]

I have worked in the finance industry (mortgages and autos) for nearly 30 years. I've seen first hand how co-signing for ANY debt can ruin a person. I refused to co-sign an auto loan for my oldest daughter. I refused to co-sign our middle daughter's student loans and our youngest daughter knows not to ask! Thank you to the OP for posting this warning. Please learn from others and do NOT co-sign anything, ever.

[musicmom]

No co-signing in our family, ever.

Son is now paying off his subsidized staffords. We have a small parent loan in my name that covered his undergrad (other than what we paid out of pocket )

Son asked me to accompany him to purchase his first 'new' real car....I was there for moral support and parental wisdom. He put a hefty down payment towards the 2 year old car and HE took the small loan for remainder in his name.
Son actually is happy to be a full fledged adult paying his way.

[cptofthehouse]

ANYTIME ANYONE cosigns ANYTHING, one should be prepared to take on that payment. My father cosigned some things for my brothers, and under some circumstances I would cosign some things, but always with the full understanding that I could be taking on the whole load.

Auto loans are often cosigned by relatives, particularly parents, and I don't see any reason not to do so. It is a secured loan, and it is usually for a short period of time for a small enough amount that it is usually doable. If you have a kid who needs a decent car and doesn't have the cash to pay it, but has prospects and the car can make a difference, I wouldn't see any reason not to cosign unless you can't afford it if anything should happen to your kid and if you simply don't want to do it.

School loans are a whole other thing. A big problem with them is their magnitude and duration, so calculating the affordability of them can have a lot of probability in them. THe private loans are oftne not flexible in their terms. Better to take a PLUS DIrect Parent loan and make a separate agreement with the kid in most cases. That way you don't fool yourself on who is truly on the hook, and if you or the student should die, the loan is forgiven. ALso the hardship provisions are more flexible.

But ANYTIMe you cosign, you have to be fully aware that it's just like taking out the loan yourself if anything should go wrong with the person for whom you cosign, and the reason a cosigner is being asked for is because it is probable that something will.

[BCEagle91]

It's not just like taking the loan out yourself - it's worse.

Penalties, fees and interest can be added to the loan amount increasing your liability without your knowledge. If you take out your own loan, you will keep current on it.