My friends son and his ex wife has asked him to co sign for a college loan which is not re payable until the year 2012.
I do not understand college loans and he has asked me what I think of it. He believes he may be getting himself into some kind of a financial trap.
I did not know a college loan required a co signer. Does it?
He already payed for his 1st years tuition and his dorm fees and all that stuff. I do not want to give him mis information, but clearly he is concerned. Who do we ask about this for sound financial advice? Do you know anything about college loans for an 18 yr old child? Do you think he is being ripped off? Do the parents co sign a college loan for $6K not repayable for at least 5 yrs?
2007-09-11 10:54:01 · 6 answers · asked by happydawg 6 in Education & Reference ➔ Financial Aid
I would advise your friend to go with his son to the financial aid office at the school and speak to a financial aid officer. They can help him understand why he needs to cosign for these student loans and exactly how much his son needs for college. If your friend has already paid for dorm fees and tuition, then why does his son need more money? Did his son fill out a FAFSA? These are all questions that the financial aid officer can answer. If this man's son won't take him to the financial aid officer, he should be very concerned for the motive behind his son's need for a loan.
2007-09-11 12:46:59 · answer #1 · answered by jml167 4 · 0⤊ 0⤋
Most Federal financial students loans, usually called Subsidized and Unsubsidized Stafford loans (the first loans offered to students) do not require a parent cosigner. If your friend is being asked to cosign on a loan, there could be a couple of reasons.
1. the school isn't eligible to receive federal fin aid. In this case, the student and your friend should RUN not walk away from this school.
2. the student hasn't applied for federal student loans yet at www.fafsa.ed.gov and doesn't know he can get a better government backed loan without his parents as cosigners.
3. the school is eligible for federal student aid but the school is wickedly expensive and the student has maxed out all other loan types and therefore has to take out other private loans to cover the cost.
4. the student has taken out the "good loans" as mentioned above AND covered the cost of his education because it isn't an expensive school. But is taking out yet another loan to "live off" of and this money isn't going to the school to pay for tuition and fees. Note: Many school loans that don't require a cosigner go directly to the student and NOT the school. If trust is an issue, look into this.
My advise to your friend regarding cosigning. Have him ask his son for a copy of his "Award Letter" from the schools financial aid office, it has a detailed amount and types of fin aid the student is being given. Also ask his son for a copy of the bill from the school. Then he/she can make a more informed decision about if they want to "possibly" pay for their child's education.
Below is a link for the different types of federal student loans and the minimum and maximum amounts. The student needs to utilitze these first before he goes to the others.
2007-09-11 12:21:22 · answer #2 · answered by Anonymous · 2⤊ 0⤋
Federal students loans, such as the Stafford loan or the Direct loan do not require a co-signer or good credit. They are based on need. I am assuming you have filed your FAFSA. As long as you have the current FAFSA on file you are eligible for federal student loans. Go to your college and talk to the financial aid office. They can explain more about federal student loans and give you the papers to fill out. Good luck!
2016-04-04 02:40:25 · answer #3 · answered by Anonymous · 0⤊ 0⤋
My parents co-signed for loans when I was in college. Students do not have to repay the loans until they are out of college and have good paying jobs. I still have one child in college and I support her every way that I can. Signing for a 6 K note is a small thing. Supporting a child that you helped bring into this world to get a college education is a big thing. Encourage him to to the big thing.
Ken W
baldyken2001@yahoo.com
http://wolff2001.googlepages.com/home
2007-09-11 11:14:37 · answer #4 · answered by Ken W 2 · 0⤊ 0⤋
Yes, a parent needs to co-sign a student loan. Usually you don't have to pay loans back until you graduate from school. I know City Bank has that.
2007-09-11 13:05:15 · answer #5 · answered by naughty_triks 1 · 0⤊ 1⤋
the co signer is obligated to pay if the student doesn't, I've seen it, and if they don't they could lose their house .Said student should apply for FAFSA or a grant
2007-09-11 11:09:16 · answer #6 · answered by Anonymous · 0⤊ 0⤋