Asked to co-sign a college loan

aquapt
Sun, 27 Dec 2020 21:29:51 +0000

This sounds awful.

The student has only completed 1.5 years out of 4 (assuming they will graduate on time which is not a foregone conclusion) and already the parents have maxed out their borrowing capacity and need a cosigner. Where is this trajectory supposed to go?

It would be one thing if the student were in the final semester before graduation and needed a cosigner to bridge a small gap in borrowing capacity. But for a student who isn’t even halfway through? This will turn into a case of “in for a penny, in for a pound” and you will be asked to assume debt that you probably wouldn’t even consider for your own child.

It is important to understand that if the student can’t pay back the loan, you will be fully responsible. If the student drops out and doesn’t finish the degree, you will still be responsible. Even in the rare tragic case in which the student passes away or becomes incapable of gainful employment for physical or mental health reasons, you will be responsible. Even a bankruptcy won’t get you out from under this kind of loan.

I’m sure saying no will be very difficult, but if this family needs a cosigner at the point when the student is only in year two, this is not a viable situation. The student needs to be considering transfer options.