Why You Should Never Cosign a Student Loan

And How to Save Yourself If You've Already Done It

Parent, I urge you: DO NOT cosign a student loan for your child.

Today I’m featuring information from an article by nationally syndicated radio host and author Clark Howard. I consider this to be must-read info for every parent. After you read below, you can find articles by Clark Howard, listen to his radio show, view his videos, and sign up to receive his money-saving advice right in your email inbox at ClarkHoward.com.

Are you considering cosigning a loan for an adult child who needs a car, a student loan, or a credit card?

Here are 6 deeply concerning things you need to be aware of before you pick up that pen.

cosign a student loan

1. If you cosign a student loan, you may unwittingly strain future family relationships.

Nobody likes to think about this, but there’s an almost four in 10 chance that when you cosign a student loan, you will be the one who has to pay off the balance. A CreditCards.com survey found that of the cosigners they surveyed, 38 percent had to pay some or all of the loan balance or credit card bill because the primary borrower did not, 28 percent experienced a drop in their credit score because the person they chose to cosign for paid late or not at all, and 26 percent said the cosigning experience damaged their relationship with the person they cosigned for.

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Why Your Kid Shouldn’t Take a Car to College

One of the best money-saving ideas I suggest for college students is, “Don’t take a car to college.”

Most college campuses provide easy access to safe public transportation, and when a student really needs a car she can always call Uber. (Anyone, anywhere, can use this promo code to get $20 off of their first Uber ride: jeannieb105ue.)

Worried about your daughter’s safety on campus?

She may be safer walking with a campus security escort than trying to locate her car in a dark parking lot.

Students who don’t take cars to college save big.

They save thousands on gas, oil, parking fees, insurance, and auto maintenance over four years, plus they greatly decrease their potential for being in auto accidents or getting career-crippling D.U.I.s.

But what do students without cars do when they need to shop?

Nobody wants to lug four large Target bags back to the dorm room on the bus.

Fortunately, students can order almost everything they need on Amazon.com, and get their purchases shipped to them for free in two days using Amazon Prime Student. The best news? College students pay only half what I do for Amazon Prime. Plus they get a 6-month free trial when they sign up. Join Prime Student FREE Two-Day Shipping for College Students now, or read on.

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