Real Estate, etc... by Eric Michael: August 2013

Think Long and Hard About Co-Signing for a Step Child's Student Loan

Think Long and Hard About Co-Signing for a Step Child's Student Loan

A few of you know the situation I've been going through lately, and as time passes, I'm sure I'll write something start-to-finish about it.

But right now, I just want to send out a warning.

I was talked into co-signing for my then step son's student loan for his freshman year of college.

We all talked about it, his mother included. The agreement was he would take on summer jobs and have the loan payed off BEFORE he was finished with college. The interest rate would be a LOT lower with my signature on it, and they both Guaranteed me that it would be taken care of by the time he graduated.

I think he's been out of school for 3 or 4 years now.

The debt is actually still higher than the initial loan, because he refused to work summers, instead playing video games all night and sleeping all day.

As for my (now ex) wife, she made excuse after excuse for him. I won't get into that here.

So, my divorce was finalized in April and I was in Bankruptcy court this morning to try to actually end up with some kind of future for myself.

Talking to my lawyer after meeting with the trustee, I realized that everything is possibly really gonna work out (eventually).

But, there's still the issue of the Student Loan.

Bankruptcy doesn't remove the Student Loan debt. This one is for LIFE!

As long as he pays it, there isn't an issue, other than debt-to-income potential issues.

But, let's say that I rebuild my credit over the next few years. I'm starting to think about getting a loan for a new place to live and he misses a payment. Or three. And I don't find out about it until my loan is declined. I would then need to start over with my credit rebuild!

Just think about it. That's all I'm saying.

Ā 

Eric Michael, Real Estate Professional
Remerica Integrity, Realtors
41000 W. 7 Mile #105
Northville, MI 48167

Cell: 734.564.1519

Fax: 248.912.9996

www.ShortSaleInfoMI.com

www.EricMichaelOnline.com

Comment balloon 16 commentsEric Michael • August 21 2013 04:31PM
Think Long and Hard About Co-Signing for a Step Child's Student Loan
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Think Long and Hard About Co-Signing for a Step Child's Student Loan A few of you know the situation I've been going through lately, and as time passes, I'm sure I'll write something start-to-finish about it. But right now, I just want… more