Already ask this question but need to add more about a co-signer?
In my last question i was talking about my brother-in-law and my husband co-sign for a student loan. Ok im just so upset with this. Im 30 weeks pregnant and crying because i feel like i have no say so in anything when it comes to my in-laws and asking for something. My husband did bankruptcy just on credit cards like 4 years ago and we are now fine we just got a new car leased it and we dont have all the credit crap we are back on our feet living great, and my brother-in-law needs a co-signer for a student loan. -in-laws cant and they are trying to butter my husband up to do it and its working. Well we said no when we talked about it and now he has talked to him mom and she is making him feel bad and sayin that next year they are doing a consolidation loan and it will be taken care of. Well I dont know abou that, and im just worried that i dont want that on our credit. and if he doesnt get approved for the co-signer then it still messes up your credit. Right? how can i make him see.
January 1st, 2009 at 7:34 am
Bad Idea. REAL BAD Idea.
CO-Signing on a student loan can be a nightmare, especially if it is a private loan. especially based on the promise that they will “consolidate” next year. Why cant they consolidate this year? If they don’t qualify for consolidation this year whats makes you think they will qualify next year?
Co-signing will mean your husband is guaranteeing his name and wages that if your bro-in law doesn’t pay your husband will. With student loans they do not have to obtain a judgment to garnish wages or levy bank accounts, they can just proceed with out it.
Also if he ever tries to apply for any financing the student loan will be on his credit report as additional debt which will hurt the score. Even one 30 day late can disable a credit report. If he absolutely has to do it make sure he makes the payments to the bank and your bro-in law pays him.
January 3rd, 2009 at 11:11 am
A consolidation loan will not effect your husbands credit (if infact he has already co-signed on a loan for his brother). As long as it is a consolidation “loan” from a reputable lender and not a credit consolidation company (these are not loans). If your husband has not co-signed on anything yet than he has nothing to worry about.
January 4th, 2009 at 10:53 am
I co signed for my brother and he screwed me cause he didnt care about his credit, he has everything he needs now. Dont do it
January 6th, 2009 at 2:08 pm
Yes, if your brother-in-law defaults on the loan then your husband will financially be responsible for paying it.
Not only would this be a hardship on your family but would ultimately cause friction within your extended family in the future if he cannot pay. He needs to think long and hard before signing the papers.
January 7th, 2009 at 3:57 am
Do not co-sign anything for anybody EVER unless you are prepared both mentally and financially to make a gift of the ENTIRE amount of the loan to whomever you are co-signing with. You don’t say how old you all are and whether your borther-in-law is going to University or what year of college he is in. If he is in his 1st or 2nd year, he can go to community college and take the exact same classes as he could at the University for about $1000.00 per semester. He should be able to manage that until your in-laws are financially ready to help him. He also needs to get a job, if he dosen’t already have one, and start saving to pay for part of his college himself. If he is going to University (in his 3rd or 4th year) then he needs to go to the Financial Aid office and ask them for help. When I worked at a University hospital I learned that if the University accepted a student for academic reasons and the student couldn’t afford the cost, the University would move heaven and earth to find a way to provide funding.
If you co-sign for the loan, your credit will be tied to your brother-in-law’s credit for the life of the loan plus at least seven years. Are you sure that you want that? I wouldn’t. If he defaults, you not only have to pay ALL of the payments but YOU take the hit on your credit score too. Also, student loan debt is not bankruptable. So if you go bankrupt you still have to pay taxes and student loans. It is just a bad idea. Much too dangerous for a young couple expecting a new baby.
January 8th, 2009 at 11:36 pm
Never co-sign for a family member or friend. Let your mother in law get the loan and then consolidate it next year. It’s apparent that his mother did not help him when he was in trouble 4 years ago so why should he help anyone else?