My fiancé is taking out a student loan and I’m the co-applicant. How can I make sure that if we separate (before of after being officially married) that I will not be responsible for any of the payments? Not only do I want to have all payments made by him, but I want to know if it’s possible to have my name removed from the loan altogether. I’m more worried about him falling behind on payments and having that reflected on my credit record. We’re talking about doing a pre-nup but I’m not sure it will be valid if we happen to split up before we’re officially married. Also, not sure if the loan company will transfer my name off the loan. What’s the best way to handle this?
2006-11-27 02:32:48 · 8 answers · asked by betsymaemae 2 in Business & Finance ➔ Personal Finance
We’ve filled out the application but haven’t mailed it in yet. As far as our relationship goes, I’m not worried about it, but I am trying to be smart as you just never know what will happen. While I would hope the marriage will last, I understand there’s always the possibility it just won’t work and that’s why I’m thinking ahead. You know, cause if K-Fed and Brittany can’t make it…… I guess the question is do you help out your spouse? You’re in it for life and to support each other. This is what he wants to do and I want to help him out with it. Also, the income he’ll receive from this will be much greater which will help us out later in a few years so the loan is worth it. On the other hand…..like I said, I’m also trying to look out for myself since you never know what can happen. Income and credit wise he’s probably a bit better off than I am actually. We thought adding me as a co-signer might improve his chances of getting the loan though.
2006-11-27 03:19:50 · update #1
You need to get out of this before you are in a real mess. Also, I think you should think twice about your fiance. If you're worried about his defaulting on a student loan, how would it be if he defaults on his responsibilities as a husband/father. I think you should move far, far away from this situation.
2006-11-27 02:41:27 · answer #1 · answered by clarity 7 · 1⤊ 0⤋
I hate to say it but I think you're stuck with this one -UNLESS you can go to him and tell him you want him to let you out, in which case you could both go to see the appropriate people and have them re-do the paperwork. But something tells me, since you seem pretty concerned about him defaulting, that he won't go for that. The rules governing loans (including student loans), as far as I know are no different from getting money from any other loan agency. You sign up, you pay up.
BUT I notice you say your fiance "is signing up" and not HAS signed up. If this means you haven't actually gone completely through with it yet, now is the time to stop the whole transaction dead in its tracks, which should be possible because there is a required grace period.
I'm a great believer in "gut feeling" But something tells me your anxiety about this comes from more than just your gut, but some very real reason to believe that your fiance will default. My strongest advice would be to go talk to your loan agency/whoever, and just be straight with them, telling them that you have decided that this was a rash move and you are very much afraid - now you have had time to mull it over - that you are likely to get stuck with the full loan amount. If you are in the more usual student age- range, you're young and inexperienced, and it's very likely they'll cut you some slack over this matter. I absolutely think that you ought to make an effort to get out of this agreement any whichway you can.
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2006-11-27 03:05:49 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Can you cancel the loan or has he already rec'd it? If the loan went thru then there's no way they'll remove you from it. Sounds like you have way better credit than he does and that's why he needed a co-signer.
A pre-nup will not protect you either since I'd assume he has no assets or collateral to secure a lien on in the future. All he has is his word to repay it.
This is tough because you want to trust in your significant other but you must also plan for a whatif. I did not do the whatif and I have lost $15k of my retirement, never to see it again. I have no job but he does. I have no house but he does. (pre-marital) Legally, I am screwed. Please get him to get a new loan with his parents or anyone else but NOT you. Get off the loan!
2006-11-27 02:50:03 · answer #3 · answered by upside down 4 · 0⤊ 0⤋
How do you know your fiancé wouldn't cancel the wedding after you sign the application? What I'm saying is not to sign the application, because if he or she decides to vanish you will be liable for 100% of the cost. From experience student loans range from $5,000 to hundreds of thousands of dollars. Wake up!
2006-11-27 07:06:55 · answer #4 · answered by DW 1 · 0⤊ 0⤋
First of all you can't. If you cosign you are agreeing to pay off the person's debt if they can't make it. That is why you cosign to begin with. My sister did this with her exhusband when he sarted up a business. he bailed on the business and the marriage and her life became a mess.
Second, are you sure you want to marry this guy? You don't sound like you have a lot of faith in him.
2006-11-27 02:38:39 · answer #5 · answered by Justme 4 · 2⤊ 0⤋
You are one extremely foolish woman if you've signed already. If you have you should see if there is any way you can get out of it even if it means the relationship ends.
NEVER cosign for anyone for any reason.
2006-11-27 02:41:32 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Any time you "Co-Sign" anything, you are equally responsible for that debt. If you are unsure, then don't do it. It's not worth the headaches and the stress.
2006-11-27 02:43:01 · answer #7 · answered by low1sk8er 4 · 0⤊ 0⤋
don't be the co-signer, that's about all you can do. if you are going to marry him why are you thinking about separation already??
2006-11-27 02:41:55 · answer #8 · answered by parrotsarenoisy 5 · 0⤊ 0⤋