My neighbor is a 'shade tree mechanic' who is gonna take me to check out some cars at the city auction within the next few months. I told him about my situation with a student loan I wanted to take out, but no one in my family had decent credit, or they refused. This is an exra loan so I can get on my feet ($10,000)
I planned on making a down-payment on a car and put up enough for about 1-2 years of car note, pay about $1000 on other student loans and the rest will be put in a high instrest cd.
1).What are the dangers if any of letting ppl u don't really know co-sign?
2).If I do let him co-sign, how much should he get?
2006-11-21 04:15:54 · 13 answers · asked by Gifted and Gracious 3 in Education & Reference ➔ Financial Aid
1. none, to you. All the risk is his. 2. He gets nothing.
2006-11-21 04:17:54 · answer #1 · answered by David B 6 · 0⤊ 0⤋
DO NOT DO THIS! Tell your brother to apply for financial aid through his school, he'll have to complete a FAFSA. Then have him obtain a federal student loan, not a private student loan through Chase or other banks. The private student loans will require a cosigner, ever thought why? Because they'll come after YOU and your car, house, income in the event your brother doesn't or CAN'T make his payments. A federal loan doesn't require a cosigner because they don't try and repossess stuff if a borrower defaults other than confiscating the borrowers income tax refunds and trying to garnish the borrower's wages. And to answer your question, YES the amount that you cosign will affect your ability to obtain loans because YOU are on the hook as a cosigner for the full amount.
2016-03-29 04:21:28 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Have you filled out a FAFSA? CAn you get additional unsubsidized loans?
I personally would not co-sign for anyone, elt alone someone not in my family. He is probably hoping for something in return, or as collateral for him assuming the risk of your loan. Be very careful. He's assuming all that risk for you to borrow 10 grand. He's got a hidden agenda. I would go to a bank myslef and get a loan instead of trusting a stranger to loan me money. At least a bank can only come after you if you fial to pay. This guy could demand that you pay him earlier because of the risk he is assuming.
2006-11-21 04:26:56 · answer #3 · answered by anon 5 · 0⤊ 0⤋
I wouldnt do this. a) you said yourself you dont really know this guy and im sure he will be expecting something in return and trust me, its not money. b) What happens if you cant make a payment on the loan? they go after him so not only will you ruin your credit but his as well. If you really need a loan, you should try applying for one through your local bank and if a cosigner is needed, then ask a trusted friend or see about getting a pay advance at work.
2006-11-21 04:25:24 · answer #4 · answered by Danelle 5 · 0⤊ 0⤋
If he co-signs for the loan, he should get nothing. He is responsible for the loan only if you fail to pay on it. He is the one taking the risk by co-signing, but you are the one they will first come to for payment.. If he wants money for it, I would not let him sign. If he is a close enough friend to do this for you and take on the risk and obligation to pay it back if you fail to..... I would make D... sure that I paid it back and don't saddle him with your debt.
Best Wishes,
Sue
2006-11-21 04:19:49 · answer #5 · answered by newbiegranny 5 · 0⤊ 0⤋
one danger is that they might screw the whole thing up for you and then you could get in trouble for doing something you didn't do in the first place. he might also start thinking you ow him something. so when you give him the money you are planning on giving him, he might ask for more because of what he thinks you ow him. if you are going to pay him something, it doesn't need to be more than a couple hundred bucks and stick with the same amount of money you are planning on giving him, do not change your mind if he tries to sway your amount. have one amount and stick with it. either that or you end up with more money than you expected going to him, and you'll be so caught up in trying to figure out how to solve that situation, you might just think of some "brilliant" plan that could just cost you even more of your money. that would not be good. so stick with one price and that's it. don't let him sway your amount.
2006-11-21 04:29:21 · answer #6 · answered by live_life_nice 2 · 0⤊ 0⤋
be careful, he might be thinking you would owe him something.
He shouldn't be asking for anything in exchange. Don't do it unless you really trust him.
Also, I think you could get the student loan anyway. The gov subsidizes them. Ask at the school. It doesn't depend on credit like most loans I think.
2006-11-21 04:19:48 · answer #7 · answered by kurticus1024 7 · 0⤊ 0⤋
DON'T DO IT. You have a BAD plan. What you need to do is get to work and earn some money for car and college.
www.daveramsey.com
2006-11-21 04:18:55 · answer #8 · answered by snvffy 7 · 0⤊ 0⤋
Better see what the "interest"payments are! This is really an iffy place to go! ;-)=
2006-11-21 04:24:05 · answer #9 · answered by Jcontrols 6 · 0⤊ 0⤋
Your neighbor is an idiot. In answer to #2...what do you think he's hoping to get?
2006-11-21 04:19:00 · answer #10 · answered by Spud55 5 · 0⤊ 0⤋