This most disruptive loan is also the most easily avoided.
How many parents co-sign these student loans ,but won’t do so for a Visa card or car?
(which is how this got me thinking: a co-worker whining about collections on her paycheck due to her daughter’s default.)
Yes, but it is not just an unlimited “line of credit” that the parent takes on by co-signing. The parent/s is informed of the amounts of the loan/s, and should consider at each step whether to continue the risk. And if the parent does continue the risk or the child does default, the parent should be held responsible if they co-signed. No different than if they co-signed for a car loan.