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| *Ostroff, Fair and Company>>>Credit |
Co-signer on School Loan Help!!? |
My sister co-signed on a loan of $4,000. It is a deferred loan and she will never have to co sign again for me. But she asked me to have it payed off in a year. I can't afford that!! the point of the loan is because it's deferred!!! She said its affecting her. I need to know if a $4,000 deferred loan is really hurting here?? Is it even showing up on her credit because i dont have to start making payments?? shouldnt it only affect her if i dont pay it on time?? help me plz First of all yes it will affect. Let em tell you try to get some grant and pay off the loans. Now government give some type of grants to students you can try for them. To know more you can visit http://www.hstrial-tgeorge1.homestead.co... Yes it is affecting her. Since she co-signed for the loan, it appears on her credit score. It is a liability that she is responsible for if you decide that you are not going to pay. The money has already been borrowed, so regardless of when you need to pay it back it will appear in the credit report. If your sister is looking to buy a house, that 4 grand will not look very good. It means that she cannot qualify for a better loan because she already has debt to her name. The more debt you have in your name before you apply for a house loan, the smaller the house loan you qualify for. That's what people don't know when they co-sign a loan for someone. That means they assume the risk if the borrower defaults. For as long as you owe that money it will appear in her name as well. It would look good if you can start making payments on the loan before it's due. Like $20 a month. Anyone can afford that. Just skip a pizza every other week. It shows that you are being proactive about paying the money back, and the banks may see that and give your sister less trouble. No it still effects her credit. It shows up as her owing that as well, because if you do not pay, then she has too. In order to have GREAT credit, they say that you should never owe more than 1/2 of your credit line for long periods of time, but always owe some money. Owing nothing is also bad. Go figure! Ryan, If I were you, I would pay back the deferred loan according to the payment schedule set up by the creditor. Your sister had her chance for input BEFORE she co-signed your debt. If she needs the loan payed off in a year -- tell her to pay the $4,000 in the same 12 months and YOU WILL PAY HER BACK when you get a job. Your sister made the bad mistake of co-signing for your debt when she couldn't afford the LOAN or the drop in her credit score! When she placed family loyalties above her own financial stability, then she has to deal with the consequences of her decision. You shouldn't shirk your responsibility to pay the loan according to the terms of the promissory note, but you are not morally required to accelerate your payment schedule, when you don't even have the funds! You can not give what you don't have. Maybe your sister will think twice before she co-signs a loan, and that's a good thing. Life. |
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