Terry, whose responsibility should it be, the parent or the student, when repaying parent plus portion of the total student loans. I say that we helped the kids by our credit approval which they would otherwise not be able to get approval quite as easily. My wife says no- we need to help the kids but I say that now we’re approaching retirement, we have bigger priorities to consider and in addition, our expenses have been eating up much of our income. She calls me insensitive and a meenie. Is she correct?
Terry Says: You’re too late to be calling names! By signing for that loan, you accepted responsibility. If there is a default it will ruin YOUR credit, not your child’s. (He or she will have enough credit problems if they don’t repay their own federal student loans!) I’ve warned about this for years — warned parents not to compromise their retirement to get their children through college. Pay the loans, don’t point figures — and both of you need to work a few years longer than planned!