<p>I am looking at a few threads where parents will not co-sign student loans. I thought that was pretty much normal. I assume these are private loans. So it is a stay away situation? For non-private loans, the student signs for themselves reguardless of the parent?</p>
<p>What are the terms of these loans that make it possible for the student themselves able to pay?</p>
<p>Learning so much here.</p>
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The terms of the loans are pretty much the same as those on any other loan. The lending institution decides how much risk it can take for an investment of its money. They are trying to be assured of a payback and the more certain way to do that is have a cosigner with good income. There is no certainty a student will complete studies or get a good job so they are not good credit risks.</p>
<p>So it is a stay away situation?</p>
<p>We would never co-sign loans. The federal student loan limits are more than enough for any new grad to pay back. Co-signing bigger loans can set a child up for a lousy young adulthood by drowning him/her with debt. Young grads don’t earn a lot of money and often underestimate how much their own living expenses and taxes are going to cost them once they’re out of school.</p>
<p>*</p>
<p>For non-private loans, the student signs for themselves regardless of the parent?*</p>
<p>Yes…for federal loans, the student alone signs. Keep in mind that the amounts are low because new grads have a hard time paying them back. </p>
<p>frosh year $5500
soph year $6500
Jr year $7500
Sr year $7500</p>
<p>Oops. I just realized I answered the wrong question in Post 2. The gov’t guarantees the loans (rather than a wage earning parent) which is what allows the loan to go through.</p>