Student Loans a "Ball and Chain" for Parents Too!

Co-signing a student loan? You may never be able to free yourself


Parents and grandparents who signed on to their kids’ private student loans are having trouble getting out of them, even when their student is successfully paying back the debt, a new report suggests. About 90% of co-signers who applied to be released from a private loan were rejected, according to a Consumer Financial Protection Bureau review of more than 3,100 complaints about private student loans. Often student borrowers can’t qualify for a private loan without a co-signer and even if they do, a more credit-worthy co-signer could give them access to a lower interest rate. “Parents and grandparents put their financial futures on the line by co-signing private student loans to help family members achieve the dream of higher education,” said CFPB Director Richard Cordray
Comment: Image source. We know parents who are co-signers with their children's loans and are unable to retire.

No comments:

Post a Comment

Any anonymous comments with links will be rejected. Please do not comment off-topic