In 2017, Reconsider Co-signing Student Loans, Search College Scholarships First


April 4, 2017
by Susan Dutca
With more than 75 million struggling millennials and a colossal $1.3 trillion in student debt, parents should be wary of co-signing on a student loan, as it could greatly affect their future finances and retirement. While Americans highly value a college degree and many parents would sacrifice their finances to help their children, co-signers can be left in the dark if the college plan doesn't go as planned.

With more than 75 million struggling millennials and a colossal $1.3 trillion in student debt, parents should be wary of co-signing on a student loan, as it could greatly affect their future finances and retirement. While Americans highly value a college degree and many parents would sacrifice their finances to help their children, co-signers can be left in the dark if the college plan doesn't go as planned.

The majority of families afford college through college loans, especially when the average yearly cost of a four-year college degree is $80,000 at an in-state public school and roughly $200,000 at a private college. These numbers don't even account for the cost of not graduating on time, which happens often.

Nonetheless, co-signers are "willing to ignore harm to their credit rating and being burdened by loan payments in retirement." According to LendEDU, 57 percent of co-signers "believe their credit score has been negatively impacted by co-signing on a student loan" but "only 35 percent of parents regret [it]." 33 percent of co-signers did not even fully understand the risks of co-signing; and still, 66 percent of parents whose children asked for help on loans co-signed. Co-signers do have the choice to opt out of the agreement via a co-signer release, or if the loan is refinanced. Options such as Parent PLUS loans also require parents to repay the loans, so that they aren't "at the mercy of the student being able to make payments."

If co-signing loans is a necessity for your family, experts recommend having strong and open family communication. Being able to discuss debt, what financial information should be disclosed with children, and "examining the dollar-and-cents details" are crucial for successful co-signing. Either that, or avoiding it altogether. One way in which college can be paid for - sans the financial repayment or burden is through college scholarships, which do not need to be repaid and are awarded for various types of achievements, hobbies, talents and more. No matter your current year in school, there are dozens of college scholarships, scholarships for undergraduate students and graduate student scholarships waiting for you!

Just because there are millions of college scholarships out there doesn’t mean you have time to go searching, and many won’t even match your profile. We’ve done the work and Scholarships.com is totally free. We have the search algorithms and scholarships database, saving you time in searching, finding and applying to thousands of dollars in college scholarships. Get instantly matched to scholarships that meet your unique talents, skillset and strengths, only those you qualify for. Access a complete list of college scholarships now by conducting a free college scholarship search at Scholarships.com.

Discuss

Share your thoughts and perhaps thousands of students will benefit from your unique insight on the subject!



If you can read this, don't touch the following fields


 
A mom who agreed to pay $1.5 million to a college-admissions consultant to help her child get into a prestigious prep school and Ivy League College is now being sued for allegedly paying only half the fee. The Manhattan-based firm, The Ivy Coach, says the family is part of the international aristocracy who have enlisted Ivy Coach's premium services.

Mom Agreed to Pay $1.5M to Elite College Consulting Firm

February 14, 2018 9:27 AM
by Susan Dutca
A mom who agreed to pay $1.5 million to a college-admissions consultant to help her child get into a prestigious prep school and Ivy League College is now being sued for allegedly paying only half
 Photo credit: Erin Hooley / The Chicago Tribune 
A University of Illinois at Urbana-Champaign Professor has been accused of following members of a pro-chief Illiniwek group into a restroom and videotaping. He was arrested for unauthorized videotaping but was released from the county jail since the state's attorney's office did not charge him with a crime.

University Professor Arrested for Restroom Recording

January 30, 2018 1:46 PM
by Susan Dutca
Photo credit: Erin Hooley / The Chicago Tribune A University of Illinois at Urbana-Champaign Professor has been accused of following members of a pro-chief Illiniwek group into a restroom and
A federal judge dismissed a civil rights lawsuit by a former LSU professor fired in 2015 for using vulgar language in her classroom. The formerly-tenured education professor alleged that LSU violated her First Amendment free speech rights and that their sexual harassment policies are unconstitutional.

College Professor Canned for Cussing

January 16, 2018 3:55 PM
by Susan Dutca
A federal judge dismissed a civil rights lawsuit by a former LSU professor fired in 2015 for using vulgar language in her classroom. The formerly-tenured education professor alleged that LSU violated
The University of California, Berkeley is working to end the detention of one of its undocumented students who was detained by the Department of Homeland Security after allegedly overstaying his visa. The university's chancellor and student activists are keen on taking all appropriate actions to support the student's interests so that he may continue his studies and his life as a valued member of [the] community.

Berkeley Battling for Release of Luis Mora

January 9, 2018 1:21 PM
by Susan Dutca
The University of California, Berkeley is working to end the detention of one of its undocumented students who was detained by the Department of Homeland Security after allegedly overstaying his

    What better time to start afresh than in the New Year? Make it your New Year's resolution to win scholarships for college in 2018. To help you get a head start on your 2018 scholarship search and scholarship application process, we've made a list scholarships in 2018. Remember to also log in and check your scholarship matches often for even more scholarship opportunities. Here's a look at your first scholarships in 2018:

New Year, New You, New Scholarships in 2018

January 1, 2018 3:20 PM
by Susan Dutca
What better time to start afresh than in the New Year? Make it your New Year's resolution to win scholarships for college in 2018. To help you get a head start on your 2018 scholarship search
Just because marijuana has been legalized in some states, doesn't mean that it has become legal at colleges in those states. Colleges could face a huge penalty if they are caught infringing on the law.

College Weed Laws at Odds with Some State Laws

December 19, 2017 12:50 PM
by Susan Dutca
Just because marijuana has been legalized in some states, doesn't mean that it has become legal at colleges in those states. Colleges could face a huge penalty if they are caught infringing on the
Photo by Rebecca Lurye/Hartford Courant
Midway through his It's OK to be White speech at the University of Connecticut, Conservative commentator Lucian Wintrich was arrested and charged with attempted larceny and disorderly conduct after he grabbed a woman who had swiped his notes off his lectern. The charges have since been dropped and in a reversal, the woman was arrested and charged with attempted larceny and disorderly conduct.

"It's OK to Be White" Protestor Turns Herself In

December 12, 2017 1:12 PM
by Susan Dutca
Photo by Rebecca Lurye/Hartford Courant Midway through his "It's OK to be White" speech at the University of Connecticut, Conservative commentator Lucian Wintrich was arrested and charged with