My sister wants me to cosign a private student loan for her. I already have in the past, just four months ago, but she needs more money. I told her I couldn't, as I didnt know the long term consequences. She became upset, and is threatening to live in her car (we are both students at the same college) if i don't cosign. She thinks i am evil and is incredulous that I won't do this for her own sister. What should I do?
2007-12-09 19:14:24 · 7 answers · asked by Anonymous in Education & Reference ➔ Financial Aid
The fact that you have already co-signed, and now she wants you to do it again, should tell you some thing about her ability to handle her personal finances. I would be extremely wary about committing yourself to any more loan obligations until she is more stable in handling her own financial affairs.
2007-12-09 19:23:35 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Your sister should not be asking you to cosign a private student loan, but should be talking with a financial aid counselor at the college that you are attending. She needs to be discussing her financial situation honestly with them and trying to find out what all of her options are. Another loan will not solve the issue if your sister is a person who manages money poorly. The financial aid office may also be able to refer her to some help on managing her finances.
2007-12-10 02:22:30 · answer #2 · answered by T 4 · 0⤊ 0⤋
Consider very carefully before you cosign for her.
A cosigner is guaranteeing the debt. That means you will have to repay the loan if your sister does not. It’s critical that you understand and want to accept this responsibility and that you are aware of the following:
-Be sure you can afford to repay the loan. If you’re asked to pay and you cannot, you may be subject to collections efforts and your credit rating could be damaged.
-Even if you’re not asked to repay the debt, your liability for it may be included in computing your debt-to-income ratio and may prevent you from getting approval for other loans.
-Under federal law, creditors are required to give you a notice that explains your obligations as a cosigner. In addition, make sure you get copies of all important papers, such as the loan contract and the Truth-in-Lending Disclosure Statement.
Good luck
2007-12-10 01:41:51 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Loans are easy money. It is easy to see how you are afraid of being exploited by your sister. When I was at uni (australia) a friend went as guarantor for another's mobile phone and rang up a massive debt, which the first friend then had to pay.
Tell your sister that if she needs the money that bad, she can get someone else to sign it. It's your life. You can make your own decisions. If you are uncomfortable about signing it, because you know what your sister is like, then don't sign.
I've been stabbed int he back by family before. Trust me.
2007-12-09 19:20:59 · answer #4 · answered by Goonhilda 6 · 0⤊ 0⤋
Let her have her temper tantrum. Chances are, as co-signer, you're going to end up paying for her first loan. Why should your credit get trashed because of her? You need to watch your financial back, so to speak. Her behavior alone is a red flag. She should have thought about this long ago, gotten a job or 2 and started socking money away for a rainy day.
2007-12-10 00:52:06 · answer #5 · answered by beut_els_guese 6 · 0⤊ 0⤋
you already did it four months ago. Your sister is guilting you into doing something we both know isn't right. Hey, living in your car aint' so bad. You are not evil. Stick to your guns. she'll get over it.
2007-12-09 19:19:45 · answer #6 · answered by dallas 5 · 1⤊ 0⤋
You don't have to, but also understand her side of the story. She thinks you have the "I'd do anything for my own" mentality, when you don't If it's financially tough, then don't do it. It may help her more in the end, but understand that she might hold it against you for a while.
2007-12-09 20:54:22 · answer #7 · answered by Majesa 2 · 0⤊ 0⤋