Ask Terry Questions Equity loan denied for co-signing student loan

Equity loan denied for co-signing student loan

By Terry Savage on April 19, 2016 | College Savings / Student Loans

I apply for a home equity loan line of credit they denied me because u cosigner for my kids students loan . On other thing the bank put put me on late payment about the students loan . My daughter graduation is 2017 she has to pay after 6 months from her graduation . Now she is not in same university one more thing because of that my credit score went down to 810to 625 . I never pay any any late bill I pay on time how did that happens . Can u pls reply me

Terry Says:  I’m not sure what kind of student loan you signed for — but the fact that you co-signed means you are liable if she doesn’t pay.  If she dropped out of school, she might have been obligated to start making payments.  The fact that she didn’t has hurt your credit.  You need to sit down with your daughter and a student loan counselor at her school and find out where you stand, what she owes — and what you are obligated to pay on her behalf.



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