What It Really Means to Cosign a Loan

cosign

A news story caught my eye last week. This sad story made me realize that many people have no idea what they’re getting into when they agree to cosign on a loan for someone else. In this case, a mother cosigned her sons’ student loans and he died unexpectedly, leaving her to repay the debt. She is now seeking to have the loans discharged because she cannot afford to repay them but, as of this writing, the bank is refusing to do so, despite taking heavy PR hits in the media for being “cold and uncaring.”

This case is certainly unfortunate but it’s not unique. What most people don’t understand is that when you cosign a loan, you are accepting full responsib

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2 Responses to What It Really Means to Cosign a Loan

  1. jay says:

    Good idea to have life insurance for any debt which could outlast you.

    Never understood why anyone would cosign. If the banks won’t trust the credit of the borrower, why would you? Private student loans are particularly dicey since usually can’t be discharged in bankruptcy.

  2. Cindy says:

    Well, Jay, like me, you might be dumb enough to try to help a sister or brother out, like I did, who stiffed me on a car loan. I’ve announced to all my kinfolk in general that for future reference and from here on out, they can all kiss my you-know-what and not to expect any money from me and that they can work their butts off like I’ve had to since I was a teenager. I hope they never call me for anything again. You know, I’d never dream of asking any of them for anything, and that’s the truth.

    Yep, NEVER EVER cosign on a loan for ANYBODY.

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