The dangers of cosigning private student loans

Paying for College
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So nice of you wealthier folk calling us stupid for trying to help our children get ahead in life…</p>

<p>I was referring to YOUR comments in post # 5: "Yes, Plus has death protections in there, but that doesn’t solve the problems when parents and kids make stupid agreements that the child will help pay the Plus loan, yet the child never earns enough to really do so. "*</p>

<p>So? Such an agreement is stupid. That’s not the same as calling a person stupid. </p>

<p>If you say that you’ve made a dumb mistake, are you saying that you’re dumb? No…you’re saying that your mistake is dumb. </p>

<p>Now what’s going to happen to your credit if your D can’t make those payments? Will you make the payments?</p>

<p>What state are you in? Are you saying that your D couldn’t commute to a CC and then go to local state school? You’re saying that the only way for your D to get a teaching degree is to take out big loans? </p>

<p>If your D was a strong student, then there are schools that give large merit scholarships. Momfromtexas found free rides for her kids.</p>

<p>If you’re low income, then a Pell Grant, a student loan, a part-time job during the school and some summer work money is likely enough to commute to a local school.</p>

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<p>It seems to me, that you, KKmama, are taking the comments personally. I, for one, am not directing them to you personally, because I’ve yet to read a post about your personal situation with enough information to make any comments or opinion about them. I’ve read snippets from this thread, but that is it, and that’s not enough, IMO. It’s never really enough, but in most cases taking out large loans when your situation is such that repaying them is an issue is not a wise thing to do, to put it mildly. To bet on an 18 year old to be able to take on the payment is not a bet with good odds. But still, parents who know the score might have the odds in their favor. THrow in a parent who has no idea about how this works and what the odds are, and it is indeed foolish for him/her to take the risk. </p>

<p>IMO, you are more aware of the risks and odds. Your writing and they way you are discussing programs and loans indicate someone who knows the scene. Whether it’s because you have taken out loans and are familiar with the college scene, or your husband has, or both, this does not appear to be new grounds for you. You also have been very fortunate in that your daughters have achieved their goals. The % of premeds at age 18 making it into medical school are not good betting odds, and we are talking about students with good academic records and having a realistic prognosis of doing well in college. Now once a kid has successfully completed key courses, the odds change, and, yes, a loan might be a worthwhile investment. If the kid is accepted into med school, the banks are ready with loans right there for him/her to sign, forget the parents, no cosigners necessary. I would be willing to take a lot more risk with a kid who successfully completes college work at a community college in terms of borrowing money to go into a direct program. It would take longer to complete certain specialty programs when transferring into them, but a 20 year who has earned his stripes by doing well the first two years at college is a whole other candidate from that 18 year old straight out of high school that can go into any number of directions. I have seen kids go into pharmacy studies, PT, artifical limbs specialties, any kind of medical speciaty and be a good bet after a few years in college. If you laid on the bet at the onset at age 18 and it panned out for you, congratulations, you are lucky. It doesn’t always work that way, and you can see the stats yourself as to what those odds were. You won the lottery on your kid. </p>

<p>But to make it the rule for parents to take these chances when they are on shaky financial footing, is not advice I would give. Yes, I think it would be stupid for me to do so, and stupid for anyone to go that route without careful thought, experience and knowledge.</p>

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<p>*According to the logic of all of you ponitifcating about the evil of private loans (which are a bad thing, but sometimes a necessary evil), poor kids should just stay where they are. No undergrad loans for anyone who wants to be a doctor - keeps all those med school spots open for the wealthier kids, eh, if the poorer kids never get to compete? Take eight to ten years to get an undergrad degree, sure, what the heck?
There are NO state schools that offer the degree that my youngest is pursuing. Her only chance was to go to a private school, and since she had to take specific science courses from freshman year on, CC was not an option. Thank God for Obamacare, because she has a $44K grant for grad school. She’s #2 in her class - but according to the ideas on this site, she should not be there because she is poor. *</p>

<p>No one is saying that only the wealthy should become doctors. Frankly, the kids with the stats to become doctors are usually the ones who have the stats to get big scholarships or get into “full need” schools so your argument doesn’t hold true. And, there are many doctors who started at CCs. </p>

<p>What degree is your D pursuing that isn’t offered at any public?</p>

<p>* </p>

<p>And I REALLY like those comments about how parents should give their kids the money instead of co-signing loans. Do you REALLY think that if we had the money to give them we would take out the damned loans with them???*</p>

<p>If you’re referring to my comments, you’ve taken them out of context. I was talking about wealthy people in response to Swimcat’s post. </p>

<p>Is your younger D in a PA program? If not, what is her major/career?</p>

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<p>I really dont want to make this personal, but kid may have to accept that he/she is not taking the EXACT major that is only offered at more expensive private or OOS school. MOST of the course work can likely be obtained at instate school, and kid could take one summer at more expensive school.</p>

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<p>KKmama’s choice to take out private loans may have worked for him or her.</p>

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<p>And Pea may have hit the nail on its head! It’s not that it always is a disaster to take out private loans or borrow to the hilt. There are times it does work out, and that is fine and beautiful. Just not the advice to give someone already with his back to the wall financially, with an 18 year old kid who is just starting college and it all has to work out just right in order for to prevent disaster. Even when it works out, those loans hurt like salt on a raw open wound to repay. But if they heal, then all could be worth while. I, think there are less painful routes, and that is the best outcome, just the pain.</p>