PSA.....Don't co-sign for a student loan.....85 yr old mom on the hook for daughter's 2007 student loan

[1srelluc]

https://www.cnbc.com/2024/08/17/mom-who-co-signed-student-loan-for-daughter-fears-losing-her-home.html

It's a lot to unpack but here's the meat of it.

Sabrina (daughter) took out a private student loan from Navient in 2007 to complete her nursing degree, Rebecca (mother) was happy to be the co-signer on the loan.

Both women have come to regret that decision.

Sabrina, who is now 53 and lives in Vinton, Virginia, said her life took many difficult turns in the last two decades.

Paul Hartwick, vice president of corporate communications at Navient said it informed Finch in April that the loan would be transferred to her mother if she was removed from it.

“A co-signer for a loan is liable for the account if the primary borrower cannot or does not make payments on the loan,” Hartwick wrote in an email to CNBC.


Dems will say.....Financial institutions fucking over old ladies while they continue to make billions.

That said....Maybe think through your kids issues before signing on that dotted line.

But hey, let's make the lender out to be the bad guy for wanting their money back.

 

[strollingbones]

I don't know if this figure still holds true....75 % of co signers end up paying the loan

 

[jbrownson0831]

https://www.cnbc.com/2024/08/17/mom-who-co-signed-student-loan-for-daughter-fears-losing-her-home.html

It's a lot to unpack but here's the meat of it.

Sabrina (daughter) took out a private student loan from Navient in 2007 to complete her nursing degree, Rebecca (mother) was happy to be the co-signer on the loan.

Both women have come to regret that decision.

Sabrina, who is now 53 and lives in Vinton, Virginia, said her life took many difficult turns in the last two decades.

Paul Hartwick, vice president of corporate communications at Navient said it informed Finch in April that the loan would be transferred to her mother if she was removed from it.

“A co-signer for a loan is liable for the account if the primary borrower cannot or does not make payments on the loan,” Hartwick wrote in an email to CNBC.


Dems will say.....Financial institutions fucking over old ladies while they continue to make billions.

That said....Maybe think through your kids issues before signing on that dotted line.

But hey, let's make the lender out to be the bad guy for wanting their money back.

I thought Pinochijoe said he was paying these off.....

 

[Anathema]

This is why you NEVER co-sign for anyone, in anything.

 

[odanny]

The U.S. Department of Education, which typically doesn’t require co-signers on its federal student loans, forgives the debt of borrowers who become permanently disabled or can prove they were defrauded by their schools. Federal student loans also die with the borrower.

In contrast, student loan forgiveness by private lenders is extremely rare, experts say.

Only about half of the lenders discharge the debt when the primary borrower becomes disabled or dies,

 

[1srelluc]

The U.S. Department of Education, which typically doesn’t require co-signers on its federal student loans, forgives the debt of borrowers who become permanently disabled or can prove they were defrauded by their schools. Federal student loans also die with the borrower.

In contrast, student loan forgiveness by private lenders is extremely rare, experts say.

Only about half of the lenders discharge the debt when the primary borrower becomes disabled or dies,

Why should they?

Looks like her dad is on the hook for 30K too.

 

[odanny]

The problem with these student loans is not the loan itself, it is the loansharking interest that accrues on them.

 

[Fort Fun Indiana]

That said....Maybe think through your kids issues before signing on that dotted line.

Now run along and vote for the guy who committed criminal fraud to get loans and declared bankruptcy to avoid paying other loans.

 

[1srelluc]

The problem with these student loans is not the loan itself, it is the loansharking interest that accrues on them.

No idea what the interest is but it can't be any worse than what CC companies are allowed to charge these days.

Gee, in 3.5 years you would think that Biden/Harris would have reigned them in some.

 

[Fort Fun Indiana]

No idea what the interest is but it can't be any worse than what CC companies are allowed to charge these days.

Most income based monthly payment plans have payments that don"t cover the interest.

So the loans negatively amortize.

 

[odanny]

Most income based monthly payment plans have payments that don"t cover the interest.

So the loans negatively amortize.

It is the biggest financial grift in America, and student loan debt is now higher than medical debt, which formerly held the championship belt for decades.