Co-signing for a-hole nephew

https://www.marketwatch.com/story/we-obviously-bet-on-the-wrong-horse-i-co-signed-my-nephews-55k-student-loan-he-has-no-degree-and-no-job-aside-from-a-time-machine-how-can-we-get-out-of-this-mess-2020-09-16?mod=article_inline

A have a feeling this could be a CL couple playing parenting with a sibling's kid. They co-signed his student loans and the kid dropped out most of the way though, moved back in with his mother and no longers speaks to this couple who want their $$$ back.

My only thought was a creek full of s%*t, a canoe, and no paddle. He will never pay them back.

Quote
cfdavep

My only thought was a creek full of s%*t, a canoe, and no paddle. He will never pay them back.

And the government will be hitting the couple for payments and will deny them Medicare and Social Security until all plus interest is paid. Screwed themselves.

+++++++++++++

Passive Aggressive
Master Of Anti-brat
Excuses!

Some lenders offer cosigner release, but hidden in the extra-fine print, it says the borrower not only needs to make 12 consecutive on-time payments to qualify, but they also cannot be enrolled in an income-based repayment plan or else they are ineligible. Not to mention is is entirely up to the lender's discretion whether or not they want to release your co-signer even if you meet their bullshit criteria. At least, that how it is with my lender.

Also, sometimes, the cosigner will be treated worse than the borrower. For example, in my state, if a borrower defaults, all they really get is letters and phone calls telling them to pay up - like they can't even call your place of work to bitch at you and if they do, you can get a C&D against them. If there's a cosigner involved, the lender can have a lien placed on the cosigner's house, among other things.

These people are fucked, end of story. When you get a private student loan or cosign for one, you've just sold your soul. NEVER cosign a loan for anyone, even someone trustworthy. Because all it takes is them deciding to quit paying (or having a rough couple of months financially, leaving them unable to make payments) for your credit to be fucked. Private lenders also suck balls in general and no one should ever get loans from them - stick to federal loans and pay the rest out of pocket or find a cheaper school.

I don't even think they can sue or anything because they most likely cosigned with the understanding that they are on the hook if the borrower stops paying. They just made the mistake of trusting their nephew to be responsible, finish school and get a job. I guarantee the guy majored in something useless like drama or art, so his odds of getting a job that allows him to afford his payments are slim to none.

I understand he didn't graduate school but since he lives with his mother you'd think he could get a job and make payments on the loan. I doubt he pays rent or for any other necessities.

Good reality check on loaning money/signing loans for others: don't do it unless it is a gift otherwise it ruins relationships and finances.

Quote
freya
I understand he didn't graduate school but since he lives with his mother you'd think he could get a job and make payments on the loan. I doubt he pays rent or for any other necessities.

Good reality check on loaning money/signing loans for others: don't do it unless it is a gift otherwise it ruins relationships and finances.

Amen! My mother cosigned for me on several occasions but that was because she knew I was OCD about paying bills and was a good risk, despite my low income.

+++++++++++++

Passive Aggressive
Master Of Anti-brat
Excuses!

If someone needs a cosigner, that's a huge sign that he/she has no business borrowing the money in the first place. If the lender has no faith in the borrower, why should you? I never needed a cosigner, by the way, even when I was in my early 20s. It's revealing that today's kids are much more likely to "need" one.

Except for a few people here and on other forums, such as CraftyZits, every time I've heard of someone cosigning a loan for one of their family members or friends, the cosigner had to pay off the loan. Every time.

Cambion is right. If the borrower can't or won't pay, the lender will go after the cosigner and not the deadbeat borrower. And the lender will call the loan, meaning the entire amount still owed is due now. The lender has no obligation to work with a cosigner to make payments. After all, the cosigner was saying he/she was okay with paying off the bill in full if the borrower defaulted. If everyone fully realized this, no one would take that chance.

The problem is nothing new. I know of relatives who cosigned loans in the 1960s and got burned then. But today's under–40s seem even more prone to be deadbeats than people their age in decades past, and that's not just ol' fuddy-duddy K-Man talking. Truly responsible Millennials and Generation Zs seem to be more an exception, not a rule. They have an entitlement mentality that says it's not their problem if they don't feel like paying off a loan. That makes it bad for the people in those age groups who are responsible.

Student loans are a mess. My husband had to co-sign on my grad school loans, even though I was in my 30’s with a credit score in the high 700’s. There was some reason I didn’t get federal loans, but I can’t remember why. It might have been that our combined income was too high, according to my FAFSA? Anything above poverty level disqualified you from any sort of help.

What I do remember is being pissed off because there were no scholarships or special loan rates available to me, because I wasn’t a single moo or a woman of color. And I searched pretty hard.

_____________________________________________________________________________________________
"Not every ejaculation deserves a name" - George Carlin

Quote
LoveToLurk
Student loans are a mess. My husband had to co-sign on my grad school loans, even though I was in my 30’s with a credit score in the high 700’s. There was some reason I didn’t get federal loans, but I can’t remember why. It might have been that our combined income was too high, according to my FAFSA? Anything above poverty level disqualified you from any sort of help.

What I do remember is being pissed off because there were no scholarships or special loan rates available to me, because I wasn’t a single moo or a woman of color. And I searched pretty hard.

You are correct. Basically any kind of decent income makes it difficult to get student loans. Having brats does help, but being single helps as well. I was single and on my own, with my own place, when I went to college. I got all the loans I needed and even a few grants. There were married people at my school, their eyes used to get twice the size once I showed them how much financial aid I got.

Schools and loan processors will push for co-signers as much as possible. They also will desperately try to get parents' income info. Wasn't happening, I was on my own, with a job, paying my own bills. I took what I could. I paid off my loans in a short time, didn't like the interest.

Quote
craftyzits

Quote
cfdavep

My only thought was a creek full of s%*t, a canoe, and no paddle. He will never pay them back.

And the government will be hitting the couple for payments and will deny them Medicare and Social Security until all plus interest is paid. Screwed themselves.

No good deed goes unpunished. A pat on the back is only a foot away from a kick in the ass.

Quote
Techie

Quote
craftyzits

Quote
cfdavep

My only thought was a creek full of s%*t, a canoe, and no paddle. He will never pay them back.

And the government will be hitting the couple for payments and will deny them Medicare and Social Security until all plus interest is paid. Screwed themselves.

No good deed goes unpunished. A pat on the back is only a foot away from a kick in the ass.

Indeed. And with the GOP, the resulting pregnancy will be a petard around your neck for the rest of your life.

+++++++++++++

Passive Aggressive
Master Of Anti-brat
Excuses!