Cosigning a college loan???

[slonezp]

Here's my dilemma. I have already cosigned college loans for my son. My stepdaughter, who I love dearly, needs a cosigner. Anyone know what type of detrimental effect cosigning has on my credit rating. My biggest concern is if I cosign for my stepdaughter, next year when my son may need me to cosign again could I/he be turned down because of excessive obligations? My credit rating is good if that matters.

Thanks

[VolFan]

I don't think there's any negative affect, unless they default on the loan and the creditor comes after you.

[Root beer]

Not sure how much it hurts or lowers your credit since co-signing loans does indeed increase your liability which can affect your future borrowing. I really don't think you should worry too much long as your son and stepdaughter are paying back the loan.

Did you get subsidized loan? If so, I wouldn't sweat it for couple years, but if you got unsubsidized or any others then I'll make sure monthly interest is being paid.... Just my 2 cents.

[BrianinMD]

Part of your credit rating is debt to income ration. Adding another loan would affect this, its affect would be very hard to tell without a lot of other information. May be a question for whoever is doing the loan for you.

[NateFollmer]

how long has it been since your son got those loans? I think he can get your name off the loan if he has a decent credit score now.

I have a serious hatred toward school loans... Id be finished by now if they made it easier for us credit-less people to get school loans

[Root beer]

I have a serious hatred toward school loans... Id be finished by now if they made it easier for us credit-less people to get school loans

There only one way to get school loan now....I don't think it was gear towards your credit, but rather towards your income. Least that was mine understanding. The amount I qualified was base on my parents' income.

[cart7t]

Have they investigated student loans that will not involve the need for you to co-sign anything.  Subsidized and unsubsidized loans are available. 

[NateFollmer]

Have they investigated student loans that will not involve the need for you to co-sign anything. Subsidized and unsubsidized loans are available.

They only get you so far. Those loans only covered about half of my schooling. I had to come up with the rest myself

I should probably try to get back in school since I have a kid (and 1 on the way). I have like 3 months of classes left and I'm done!

[cart7t]

Have they investigated student loans that will not involve the need for you to co-sign anything. Subsidized and unsubsidized loans are available.

They only get you so far. Those loans only covered about half of my schooling. I had to come up with the rest myself

I should probably try to get back in school since I have a kid (and 1 on the way). I have like 3 months of classes left and I'm done!

Scholarships?

Or gasp!! They could go to work... I know, heaven forbid todays babies actually working for something that mommy or daddy could just give them....

just saying, there are plenty of options available that don't involve a parent putting their credit on the line for a child. That's not really something I'd want to do, that's for sure.

[NateFollmer]

Have they investigated student loans that will not involve the need for you to co-sign anything. Subsidized and unsubsidized loans are available.

They only get you so far. Those loans only covered about half of my schooling. I had to come up with the rest myself

I should probably try to get back in school since I have a kid (and 1 on the way). I have like 3 months of classes left and I'm done!

Scholarships?

Or gasp!! They could go to work... I know, heaven forbid todays babies actually working for something that mommy or daddy could just give them....

just saying, there are plenty of options available that don't involve a parent putting their credit on the line for a child. That's not really something I'd want to do, that's for sure.

Let's not even go there... I have been working full time since I left high school and have been doing my schooling myself. I never asked my parents for help, if I did, I'd be finished by now. It's not as easy as it was a few years ago to get money for school, they have really been cracking down.

Scholarships are about a joke anymore too. Unless you play a sport, you're lucky to get anything that will help. Out of the countless scholarships I applied for, I think I received maybe 1 or 2 and those were only about $400 (which is equal to about 1 credit hour). I'm not trying to sound ungrateful, but that still isn't enough to cover the costs.

[Nice_Bass]

Part of your credit rating is debt to income ration. Adding another loan would affect this, its affect would be very hard to tell without a lot of other information. May be a question for whoever is doing the loan for you.

Part of your credit rating does not whatsoever come from a debt to income ratio. 

However, when you decided to buy a new house or other major purchase debt to income will play a factor. Cosigning should have little effect on a good (740+) credit score, so long as cosigned debts are paid for.   You will be helping your step daughter establish her own credit, while providing her an education.  A risk yes, but a risk i would take for my daughter or step daughter, never mind what a grump like cart has to say.

[Fishing Rhino]

Speaking from experience, insist the person you co-sign for gets insurance, life and disability, to cover the loan for which you co-sign.

My wife co-signed for a Sallie Mae college loan for our son-in-law.  He became a veterinarian and unexpectedly died from an adverse reaction to meds he was on.  He did not have life insurance.

We were holding the bag for over a hundred grand.

[slonezp]

I have a life insurance policy on my son to cover the cost of his 4 year education which, looks like it's going to be more than 4 years, God forbid something happens. My stepdaughter does work but the issue with her is she already has 40k in subsidized, unsubsized, private loans but she can't qualify for more. I'm all for education but this s#!+'s expensive. . I'm worried I will overextend my "signature" and have problems in the future.

I may sound selfish but my son is MY son. My stepdaughter, who I've known since she was 6, is not. I love her like she's mine but I don't want to jeaprodize my sons education by overextending my credit for her. 

[Fishing Rhino]

As a rule of thumb, do not lend to, or co-sign for family members unless you are willing to look at it as a gift should problems arise.

Don't gamble more than you can afford to lose.

I know.  It's hard to say no to family. 

[Grey Wolf]

I have a life insurance policy on my son to cover the cost of his 4 year education which, looks like it's going to be more than 4 years, God forbid something happens. My stepdaughter does work but the issue with her is she already has 40k in subsidized, unsubsized, private loans but she can't qualify for more. I'm all for education but this s#!+'s expensive. . I'm worried I will overextend my "signature" and have problems in the future.

I may sound selfish but my son is MY son. My stepdaughter, who I've known since she was 6, is not. I love her like she's mine but I don't want to jeaprodize my sons education by overextending my credit for her.

"Blood IS thicker than water."

[flechero]

I may sound selfish but my son is MY son. My stepdaughter, who I've known since she was 6, is not. I love her like she's mine but I don't want to jeopardize my sons education by overextending my credit for her.

What if she is the one who has to provide the funding for your nursing home care someday? I'd take out long term care insurance, just in case, it's inexpensive while you are still young and won't affect your credit!! ;D

[Hammer 4]

Why do I get the feeling Irene will be here soon..? 

Flechero does have a point though..

Is it possible for your Son, and daughter in law to maybe get a part time job to help with expenses..?

[NateFollmer]

Why do I get the feeling Irene will be here soon..?

Flechero does have a point though..

Is it possible for your Son, and daughter in law to maybe get a part time job to help with expenses..?

I don't know much they owe yet after all their other loans, but even with working a full time job and going to school part time, I was basically working just to get to school. I had no money left for bills.

Flechero - I know slone didn't mean it like it sounded. He meant he didn't want to screw up his son's loans by signing for his step daughter.

[slonezp]

Thank you NateFollmer that is exactly what I meant.

Flechero, When all is said and done she's not my daughter. My son comes first. Does that make me an a hole? Then I guess I am. As far as your comment about getting her a pimp so I won't be burdend financially. No one is throwing her to the dogs. If I had the cash I'd much rather give her the loan and have her pay me back rather than affecting my credit rating. There are things I want to do in my near future in which I'll need the credit. My initial post was asking about the effects to my credit rating, not which kid I loved more.. 

[Glenn]

C'mon Keith.  I know you're capable of making your point without resorting to crass and rude comments.  Not only that, but it appears you misinterpreted his remarks, so an apology is now in order.

[Pond Hopper]

Unless things have changed, deferred loans(which are typically student loans) do not affect your debt to income ratio when applying for loans. 

Second, kids need help establishing credit.  Some do it themselves, some need help but it is crucial and college loans are a good start.

Third, most college students do not grasp the concept of a loan.  Sit her down, explain the situation, and I bet she makes you and your wife proud if she is a good kid. 

Fourth, a lot of loan programs out there, if sought after do not require a cosigner. 

Best of luck.

[NewAngler]

In.

I've got a atep daughter and would do the exact same as I would my own. Wouldn't think twice.

[Lund Explorer]

Here's my dilemma. I have already cosigned college loans for my son. My stepdaughter, who I love dearly, needs a cosigner. Anyone know what type of detrimental effect cosigning has on my credit rating. My biggest concern is if I cosign for my stepdaughter, next year when my son may need me to cosign again could I/he be turned down because of excessive obligations? My credit rating is good if that matters.

Thanks

After going through this whole thread, I'm going back to the start and head in a completely different direction if that's okay.

Taking into consideration that your son is going to need further assistance, your stepdaughter is basically already in debt and now needs more help, and finally, you have upcoming obligations that all this cosigning could have an adverse impact on......

FIND A REPUTABLE CREDIT COUNSELOR.... AND GO!

Whatever this is going to cost you, it would be money well spent.  A good counselor can look at all of the variables in your financial life, and can give you options for the future that most people wouldn't think about.  Consider it your tuition.

[flechero]

C'mon Keith. I know you're capable of making your point without resorting to crass and rude comments. Not only that, but it appears you misinterpreted his remarks, so an apology is now in order.

Glenn,

Yes, I am sorry for the pimp comment- I knew it crossed the line of good judgement when I wrote it. I will edit that post to correct.

As for misinterpreting the OP, I thought I might have- until I read his follow up post:

Flechero, When all is said and done she's not my daughter. My son comes first.

I'll leave it here as I have no desire to discuss the impact on credit ratings.

[slonezp]

flechero, I don't expect an apology from you. Make your own judgement. I am going thru enough torment inside my mind that your "guilt trip" has no affect.

My original post was about the affects to my credit rating. Nothing more, nothing less.