PSA.....Don't co-sign for a student loan.....85 yr old mom on the hook for daughter's 2007 student loan

[1srelluc]

https://www.cnbc.com/2024/08/17/mom-who-co-signed-student-loan-for-daughter-fears-losing-her-home.html

It's a lot to unpack but here's the meat of it.

Sabrina (daughter) took out a private student loan from Navient in 2007 to complete her nursing degree, Rebecca (mother) was happy to be the co-signer on the loan.

Both women have come to regret that decision.

Sabrina, who is now 53 and lives in Vinton, Virginia, said her life took many difficult turns in the last two decades.

Paul Hartwick, vice president of corporate communications at Navient said it informed Finch in April that the loan would be transferred to her mother if she was removed from it.

“A co-signer for a loan is liable for the account if the primary borrower cannot or does not make payments on the loan,” Hartwick wrote in an email to CNBC.


Dems will say.....Financial institutions ******* over old ladies while they continue to make billions.

That said....Maybe think through your kids issues before signing on that dotted line.

But hey, let's make the lender out to be the bad guy for wanting their money back.

 

[strollingbones]

I don't know if this figure still holds true....75 % of co signers end up paying the loan

 

[jbrownson0831]

https://www.cnbc.com/2024/08/17/mom-who-co-signed-student-loan-for-daughter-fears-losing-her-home.html

It's a lot to unpack but here's the meat of it.

Sabrina (daughter) took out a private student loan from Navient in 2007 to complete her nursing degree, Rebecca (mother) was happy to be the co-signer on the loan.

Both women have come to regret that decision.

Sabrina, who is now 53 and lives in Vinton, Virginia, said her life took many difficult turns in the last two decades.

Paul Hartwick, vice president of corporate communications at Navient said it informed Finch in April that the loan would be transferred to her mother if she was removed from it.

“A co-signer for a loan is liable for the account if the primary borrower cannot or does not make payments on the loan,” Hartwick wrote in an email to CNBC.


Dems will say.....Financial institutions ******* over old ladies while they continue to make billions.

That said....Maybe think through your kids issues before signing on that dotted line.

But hey, let's make the lender out to be the bad guy for wanting their money back.

I thought Pinochijoe said he was paying these off.....

 

[Anathema]

This is why you NEVER co-sign for anyone, in anything.

 

[odanny]

The U.S. Department of Education, which typically doesn’t require co-signers on its federal student loans, forgives the debt of borrowers who become permanently disabled or can prove they were defrauded by their schools. Federal student loans also die with the borrower.

In contrast, student loan forgiveness by private lenders is extremely rare, experts say.

Only about half of the lenders discharge the debt when the primary borrower becomes disabled or dies,

 

[1srelluc]

The U.S. Department of Education, which typically doesn’t require co-signers on its federal student loans, forgives the debt of borrowers who become permanently disabled or can prove they were defrauded by their schools. Federal student loans also die with the borrower.

In contrast, student loan forgiveness by private lenders is extremely rare, experts say.

Only about half of the lenders discharge the debt when the primary borrower becomes disabled or dies,

Why should they?

Looks like her dad is on the hook for 30K too.

 

[odanny]

The problem with these student loans is not the loan itself, it is the loansharking interest that accrues on them.

 

[Fort Fun Indiana]

That said....Maybe think through your kids issues before signing on that dotted line.

Now run along and vote for the guy who committed criminal fraud to get loans and declared bankruptcy to avoid paying other loans.

 

[1srelluc]

The problem with these student loans is not the loan itself, it is the loansharking interest that accrues on them.

No idea what the interest is but it can't be any worse than what CC companies are allowed to charge these days.

Gee, in 3.5 years you would think that Biden/Harris would have reigned them in some.

 

[Fort Fun Indiana]

No idea what the interest is but it can't be any worse than what CC companies are allowed to charge these days.

Most income based monthly payment plans have payments that don"t cover the interest.

So the loans negatively amortize.

 

[odanny]

Most income based monthly payment plans have payments that don"t cover the interest.

So the loans negatively amortize.

It is the biggest financial grift in America, and student loan debt is now higher than medical debt, which formerly held the championship belt for decades.

 

[GMCGeneral]

The problem with these student loans is not the loan itself, it is the loansharking interest that accrues on them.

Trade schools and vocational training are preferred over college anyways. No debt whatsoever.

 

[Unkotare]

Trade schools and vocational training are preferred over college anyways. ...

Preferred by whom?

 

[Winco]

This is why you NEVER co-sign for anyone, in anything.

Depends on the person.
Choose wisely.

Trade schools and vocational training are preferred over college anyways. No debt whatsoever.

I support Vocational Schools and Trade Schools and believe that these can be a great and better fit for some rather than College.

What makes you believe that these have "No Debt Whatsoever."

 

[Anathema]

Depends on the person.
Choose wisely.

Nobody. Never. No loans. No “help”. No cosigning. Period.

It’s taken me a decade to get this into my wife’s head and her parents head as well. I’ve finally done it with my wife and I’m getting very close with her parents as well. It has been a battle and with my wife I had to implement financial punishments to get it through to her.

 

[Anathema]

I support Vocational Schools and Trade Schools and believe that these can be a great and better fit for some rather than College.

What makes you believe that these have "No Debt Whatsoever."

That’s how I did it. Voke/Tech schools aren’t free but the programs are shorter and far less expensive than traditional college programs. Additionally, they tend to include far better job assistance during and after your time at the school. This makes them far more financially viable than most traditional college degrees.

 

[Winco]

That’s how I did it. Voke/Tech schools aren’t free but the programs are shorter and far less expensive than traditional college programs. Additionally, they tend to include far better job assistance during and after your time at the school. This makes them far more financially viable than most traditional college degrees.

My daughter had zero interest in attending College.
She went to trade school starting in 2011.
She was done by 2013 and started her career.
The total cost was $17,000

The loan was under her name, and YES, we contributed to some of the payments, but it was her loan and was paid off by 2015.
She got married in 2016, her husband IS ROTC and has zero debt.

 

[GMCGeneral]

Depends on the person.
Choose wisely.

I support Vocational Schools and Trade Schools and believe that these can be a great and better fit for some rather than College.

What makes you believe that these have "No Debt Whatsoever."

Apprenticeships that pay students, for example.within trade unions.

 

[GMCGeneral]

Preferred by whom?

Certainly not soy boy beta cucks.

 

[Anathema]

My daughter had zero interest in attending College.
She went to trade school starting in 2011.
She was done by 2013 and started her career.
The total cost was $17,000

The loan was under her name, and YES, we contributed to some of the payments, but it was her loan and was paid off by 2015.
She got married in 2016, her husband IS ROTC and has zero debt.

Yep. I was about 20 years earlier than you daughter. I went to a college that was essentially a trade school. Total costs were probably about $35-40K over the two years but between scholarships, student aid and what my parents kicked in I ended up with a single, private $2500 loan with I had paid of 2 years after I graduated, with an Associate of Science degree in 1994z