Whose choice should college decisions be?

SpacemanEd
Wed, 15 Apr 2015 03:29:51 +0000

You can’t get a loan, kid. You have no credit. All you have to a banker is liabilities, and no assets other than your bank account.

Here’s what credit is: A proven track record over YEARS of making and keeping financial promises. And assets (what they own) which exceed their liabilities (what they owe). Assets - Liabilities = Equity aka Net Worth. Engrave this equation to your brain. It’s adult life until death. You can’t divorce it, either.

So, for you to get a loan IN YOUR NAME, your parents must co-sign and be a party to your loan, since they have the credit and assets. If something bad happens to you, their hard-earned credit (and maybe even their house) is kaplooey. With some loans, if something bad happens to them, you might be on the hook for the remaining amount IN FULL - AT ONCE, since it was THEIR credit which secured the loan, not yours. Maybe the bank will be friendly and offer you a repayment plan - at 20%+ interest (based on your sketchy or nonexistent credit history) rather than their 9% or less (based on their long history of prompt payments). This is not something to take lightly.

Boulder is great, though. My sister lives in the area.