Co-signing student loan for granddaughter
My son and daughter in law where rejected as co-signers for their daughter college loan. To much debt? I’m retired and my wife still works and we’ve decided to co-sign for her. She’ll be 18 in August and thinks she’ll be able to get loan for the rest of college after she turns 18.
My question is we’re looking at SallieMae for loan. Is this a good idea and how are they as a loner co?
My granddaughter is a honored student and don’t want to let her hard work in high school go without her going to college.
Thank you
Terry Says
Gosh, you are wonderful grandparents, but I hate to see you do this! Student loans carry the highest rates — and if you can’t pay out of your retirement income, you risk a lien on your home (for private student loans). You really need to understand what you — and your granddaughter — are getting into.
First, why can’t she live at home for two years and attend a local community college? Second, has she filled out the FAFSA form for Federal student aid? She doesn’t need a co-signer for that money! But if you’re talking about school THIS fall, it’s too late. And that demonstrates a complete lack of knowledge and responsibility on her part. None of this is FREE money!
Please, have a talk with her high school college guidance counselor BEFORE even offering to co-sign a loan. And if she has been accepted at a college, you need to talk with their financial aid office. There may be scholarships available or work-study programs at the college.
If you don’t know a thing about how student loans work, go to Finaid.org and read all about the potential costs and implications of borrowing money for college. It’s NEVER a good deal — and that’s why the problem is making headlines!
