Wednesday, April 13, 2011

Co-signers

How many of you have co-signers on your loans? Have any of you been able to have the names of your co-signers removed from your loans?

11 comments:

gip matthews said...

I have the option on a few of my loans to have the cosigner's removed if I pay on time for one year. That's a good thing unfortunately I haven't been able to achieve that. Maybe this year....

C. Cryn Johannsen said...

Thanks, Gip.

PenelopeDawn said...

I'm in the same position as Gip. I have an additional problem, though, of having co-signed on my then-husband's loans (due to a complete lack of counsel & the blindness of young love) and now have Sallie Mae breathing down my neck for the full balance of his $50,000 loans since he's in prison, and I seem to have absolutely no recourse.

Kristi said...

I am working on getting my mother off one of my small loans. They told me as long as I make the payments on time...which I do...it shouldn't be a problem...but we shall see when the time comes.

C. Cryn Johannsen said...

Thanks, Kristi. Let us know what happens.

Andre said...

Back in 2000, I needed some financial aid to pay college tuition, room & board at the University of Minnesota-Morris. My sister, who was 18 at the time cosigned my private loan. My dad would have done it ordinarily, but his cosigning derailed previous credit applications. I didn't default on this loan, but I had been delinquent. Notices were sent to my sister and it caused a little embarassment and some strained relations. Eventually I paid it off. I still have this fat loan backed by the feds through ACS education.

Andre said...

Oh yeah, to answer question 2, I didn't even go down that road of trying to remove my sister's name. Would have required more hoops.

C. Cryn Johannsen said...

Thanks, Andre. A borrower got in touch with me recently and told me that their friend had co-signed on one of her loans. She had fallen behind on payments, so her friend was being harassed. It caused her a great deal of embarrassment as well. That's one of the reasons I keep writing about student loan debt. It helps us overcome that shame. That's hugely important to me.

Anonymous said...

My son, if thou be surety for thy friend, if thou hast stricken thy hand with a stranger, Thou art snared with the words of thy mouth, thou art taken with the words of thy mouth. Do this now, my son, and deliver thyself, when thou art come into the hand of thy friend; go, humble thyself, and make sure thy friend. Give not sleep to thine eyes, nor slumber to thine eyelids. Deliver thyself as a roe from the hand of the hunter, and as a bird from the hand of the fowler. Proverbs 6:1-5

He that is surety for a stranger shall smart for it: and he that hateth suretiship is sure.
Proverbs 11:15

No mention in these passages about being the one who asks for a co-signer. Nonetheless the warnings indicate that co-signing is a bad deal for everyone other then the lender, and has been for a very, very long time.

I had a co-signer on my student loans and it worked out ok, but I have often wondered since why the danger of co-signing is not more widely publicize. Why do adults not tell their children about these dangers? They are not a new problem. Every generation in every society with lending seems to have to learn about them again the hard way.

C. Cryn Johannsen said...

Sorry. History does not simply repeat itself. That's far too simplistic. Not sure what your point is . . .

Liz said...

I grew up in a similar church as poster 12:22 - I think he's saying the Bible directs us not to have co-signers or go into debt, because people will screw you. Unfortunately, these verses have also been used to justify discrimination and condemnation of Jewish people (with the loan-sharks-are-all-one-ethnicity chain of non-reasoning), so I'm not entirely sure what his point was either.