Comments on: Already ask this question but need to add more about a co-signer?

By: stan c

stan c — Fri, 09 Jan 2009 03:36:56 +0000

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?

By: Jeanne R

Jeanne R — Wed, 07 Jan 2009 07:57:23 +0000

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.

By: saved_by_grace

saved_by_grace — Tue, 06 Jan 2009 18:08:20 +0000

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.

By: John P

John P — Sun, 04 Jan 2009 14:53:39 +0000

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

By: jrzyhrvst98

jrzyhrvst98 — Sat, 03 Jan 2009 15:11:19 +0000

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.

By: Anselmo M

Anselmo M — Thu, 01 Jan 2009 11:34:17 +0000

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.