Many parents cosign or guarantee the student loans of their children. They hardly think twice about it. But should they? According to recent statistics, nearly 50% of college students never graduate. Combine this statistic with the dim job prospects for new graduates, and you have a recipe for disaster. After all, if your student cannot make his or her repayment installments, you, his parents, will be responsible (if you cosigned). No if’s, no and’s, no but’s.
Many parents are having a hard time with just this issue. After all, job cuts and stalled investments have drained the savings of many Americans, and not paying back student loans can damage the cosigners credit as easily as it can the primary borrower’s. Compound this with cosigning auto loans for students as well, and parents could be facing significantly financial stressors they never expected. Visit this article for more info on signing student loans for your son or daughter.