Need Advice: My sister wants me to cosign for a Sallie Mae student loan

[Pat94108]

Considering the co-signer stories I have read on this forum alone, I'd say don't do it. It will be as if you're borrowing the money, if she is unable to pay (if she can't find a job, or can't work for whatever reason) then the loan is yours. If it was a much smaller amount maybe (say under 10k), I'd say do it, but 60k. Personally, I wouldn't feel comfortable asking someone to cosign on that kind of loan for me and I'd never feel comfortable co-sigining for someone either. 

[ludawg23]

I agree with everyone for the most part but it's tough to say no to family...especially if you have a very close knit relationship with them.

Ask yourself this question though: If your sister were to default on the loan, are you able to pay off that $60K on your own? If the answer is no, then I think you got your answer.

As someone on the other side of it, I am truly grateful for my sister co-signing that college loan for me and I could never in a million years not hold up my end of the bargain.  I wouldn't be where I am today without that loan.  I am almost finished paying it off so hopefully your sister has the same values if you do decide to do it.

[macuserftw]

I would agree with the previous replies on this. Don't cosign on a student loan. If you cosign, you are 100% responsible for that loan if your sister is ever unable to make the payments, no matter what. Any derogatory marks concerning this loan will affect your credit, in fact it will be the same as you taking out a student loan yourself pretty much. Your DTI will be affected greatly (considering it's a $60K loan). Plus, student loans are protected - as in you cannot BK or get out of them. 

If it was a baby loan as another poster mentioned (less than $10K) that would be easier to pay off, then it wouldn't be that bad - BUT this is $60,000 we're talking about. That's quite a large loan. I understand that it's always hard to say no to family, but your sister should really do some research and exhaust ALL available options first. There are tons of grants, scholarships, work / study programs, etc. to attend college. 

Now the whole part about releasing you as a co-signer is not even guaranteed. In order to have you released as a co-signer on most student loans, the primary borrower (your sister) must prove credit worthy enough to qualify for the loan by herself - and she has to prove she makes enough income-wise to pay off a $60K loan. If she doesn't meet those requirements, you will not be removed from that loan and the lender has every right to make that decision.