Posted on 08/06/2014 6:47:14 AM PDT by Innovative
If this is a private loan from a bank, a threat of filing a bankruptcy might bring the lender to the bargaining table.
“School loans” are not (in most cases) dischargeable, but a regular loan used for school, a car, or whatever, is.
The moral responsibility would be Life insurance.
that statement floored me. we would be responsible but didn’t know the debt would fall to them? what do they think responsible means?
And never place your name on any of your kids Insurance.
She probably did what a lot of kids do - take out a loan far in excess of the cost of the education so that they can live off the loan money while in school (nice apartment/rent house, new car, new clothes, etc.).
Good advice. I just co-signed a car loan for my 25YO son. It's a good thing I like the car; I told him the first time he's late with a payment, it's my car, and he'll have to take public transit to get to work.
I am the only person here, who asked where is her husband, where is the father or fathers of her children.
I’m not trying to moralize here, but where did those 3 kids come from? A young single girl with 3 kids is taking on enormous debt?
Why are grandma and grandpa raising the kids, apparently alone? What about father(s)? At a bare minimum, there should be some child support coming in to the grandparents.
This is a sad story, but, as others pointed out, they did co-sign for the loan (something I have refused to do, even for close family members).
When my wife and I bought our first home I took out an insurance policy that would pay off the house if I were to die. Perhaps others can learn from this situation. If you feel you must co-sign, insist they primary person has a life insurance policy to pay off the loan if the worse happens.
On the general subject of student loans I believe they are nothing more than indenture servant laws. The game is rigged and not in the person receiving the loans favor. I advice anyone that ask to never take out a student loan. There are other options that do not require you to sign your life away.
As I recall, student loans cannot be cleared by bankruptcy, for the student borrower, but I don't know if the same holds true for a co-signer of the loan. They might look into this angle........................
Perhaps the 100,000 increased to 200,000 due to accrued unpaid interest.
But, to double the principle, there would have to be unpaid interest over a period of many years for that to happen.
Exactly. Some banks also provide such a policy that can be included in the loan, don’t they?
Still. The fact that you can’t bankrupt out of these is idiocy. Why do you thing the Founding Fathers put bankruptcy in the constitution? Historical discussions make it CLEAR it is NOT to favor one creditor over another as to what you can bankrupt out of and what you can not.
But. As we well know. Our Government only uses the Constitution when it conveniences them.
with student loan interests well below market, there would have to be some sort of chicanery in order for the principle to double. non payment for years, plus continued borrowing?
or it could just be lousy reporting, getting the figures messed up. math comes so hard to a lot of journalism cretins
But you're right.
Why should they be responsible for a loan they co-signed for if the borrower dies when they weren't expecting it?
Students really need to balance the cost of college, taking on loans, etc. with the payoff down the road.
It might make sense, dollars and sense, to take out loans if you are getting a degree in a field for which you have a high earning capacity upon graduation.
But it makes no sense to take out loans to get a degree in women’s studies. There is no demand for women studiers in the job market.
This girl got a degree in nursing, a field in which she was able to find a good paying job. But here I would question why she apparently went to an expensive private university for that degree.
Other smart kids join the military and take advantage of the educational assistance offered. The really smart ones get on the officer track and commission upon graduation. They start out mostly debt free earning $36k.
“Why should they be responsible for a loan they co-signed for if the borrower dies when they weren’t expecting it? “
Because that’s exactly what co-signing *IS*. They accepted responsibility for paying the loan and interest in the event the person they co-signed for did not pay it. Otherwise, what would be the point of the activity at all?
At the risk of sounding too insensitive, nobody asked any questions about co-signing, and what would happen if this girl died. Even if they had asked and known that they were responsible if their daughter died, they may well have co-signed anyway, thinking that the odds of death were so small.
The family certainly has my sympathy, but isn’t this what co-signing a loan is all about?
My daughter is taking out some hefty loans for Grad School. My first question to her was if I was required to co-sign.
If the answer was yes I was prepared to take out a life insurance policy on her for the total of the loan.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.