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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Social Security Checks Garnished To Pay for College

Elderly Parents in Poverty, Still Paying for Their Kids' College

Could you one day have your social security checks garnished to pay for your kids’ college?

Yes.

You may be in danger of having your social security checks garnished and not even realize it.

Parents duped into taking out Parent PLUS loans to pay for their kids’ college can find themselves on the hook for hundreds or thousands of dollars each month, right at a time of life where they may be wanting to (or worse, needing to) retire.

social security checks garnished

The Danger of Parent PLUS Loans

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Your Kid’s Under 5? Get Ready for the Kindergarten Windfall.

If you’re parenting a kid who’s not yet in kindergarten, you’re wondering how in the world you ended up reading an article written by a writer who gets kids through college debt-free. Keep reading and I’ll tell you why this blog is the best place for you to be right now.

Kindergarten

On the day your baby starts kindergarten, your family is likely to experience an exhilarating financial windfall.

Daycare expenses may suddenly plummet.

A former stay-at-home parent might start working full-time or part-time.

The boost in your income in either of these scenarios is likely to be sudden and remarkable.

During the year before your baby starts kindergarten, sit down and plan how to invest this windfall.

Using the resources and support of someone like Dave Ramsey, start aggressively paying off your own student loan and

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Drowning in Student Loan Debt? Here are 5 Legitimate Ways Out

Part 3 of a 3-Part Series

This article is part 3 of a 3-part series on what students can do if they’ve left college with student loan debt.  You can find the  first two very important articles in this series here and here.

Every year, frightening numbers of students finish college with $30,000 – $90,000 in student loan debt – and then find themselves completely unable to find employment that pays enough to cover their student loan payments.

Many of these 20-somethings work as nannies, restaurant servers, and cashiers, jobs that barely pay enough to cover rent and groceries.

What can be done about this?  Simply not paying is not an option. (You can read about the scary consequences of student loan default here.)

If you’re a former college student and you find yourself in this position, here are 5 strategies that will help.

student loan debt

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7 Questions That’ll Help You Kiss Student Loan Debt Goodbye

Part 2 of a 3-Part Series

This article is part 2 of a 3-part series on what students can do if they already have student loan debt.  To read the very important article that was part 1 of this series, click here. To read part 3 of this series (the one about student loan forgiveness), click here.  

consolidate your student loans

In the first article in this series I explained the 7  important things that student loan borrowers need do immediately after leaving college.

I didn’t have room in that article for this very important to-do item:

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Got Student Loan Debt? 7 Things To Do RIGHT NOW.

Part 1 of a 3-Part Series

This article is part 1 of a 3-part series on what students can do if they already have student loan debt.  To see parts 2 and 3 of this series, click here and here. 

You recently left college for the working world, and the freedom feels great.

But wait.

Have you left college with any amount of student loan debt?

If you have, it’s important to do 7 things as soon as possible after you stop attending college classes.

(If you’ve been out of college for years and you’ve never done these things, do them now.)

student loan debt

 

1. List every debt you owe on one clean sheet of paper.

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