Parent Co-Signer and Impact with Card Companys

[Braydon]

My kid has wanted to go to law school since grade 11 so being a good mom I co-signed for his education. Now after 5 years of  school (and two more years to go in Law School) my debt as co-signer already shows $69,000 (and its going to go higher) while my reported income is $48,000. My question is are my credit card companys like AMX,Chase BOfA,Citi ect going to start bailing out on me at some point because of this Co-Signed student loan debt on my CR? I have good credit FICO TU 733 FICO EQ 705 FICO EX 737 and I keep a good payment history going with all of them but I fear their going to look at me as a risk and cancel my cards at some point. I'm so sick of being worried over this.

[pizzadude]

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@Braydon wrote:

My kid has wanted to go to law school since grade 11 so being a good mom I co-signed for his education. Now after 5 years of  school (and two more years to go in Law School) my debt as co-signer already shows $69,000 (and its going to go higher) while my reported income is $48,000. My question is are my credit card companys like AMX,Chase BOfA,Citi ect going to start bailing out on me at some point because of this Co-Signed student loan debt on my CR? I have good credit FICO TU 733 FICO EQ 705 FICO EX 737 and I keep a good payment history going with all of them but I fear their going to look at me as a risk and cancel my cards at some point. I'm so sick of being worried over this.

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Generally I don't think that installment loan debt is quite as worrisome to creditors as unsecured ( revolving ) debt would be.   So I think that as long as the loans are ok, and eventually being paid as agreed, then my guess is that I wouldn't expect any adverse action from your existing creditors.     However this doesn't mean that you won't be asked about it ~ just be prepared with an answer that you are a co~signer and that the loans will be paid on time.  

If you apply for future credit then the loans might be factored into your DTI ~ since you are a cosigner you are responsible for the debt.

[Braydon]

Thank you so much! You have taken a LOAD of worry off me. Every parent wants to see their kid realize their dream in life but I never thought back 5 years ago his education would run this high. And yes his loans will be paid back on time so all things being equal I guess I'll be ok. Again Thank you for your reply

[webhopper]

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@Braydon wrote:

Thank you so much! You have taken a LOAD of worry off me. Every parent wants to see their kid realize their dream in life but I never thought back 5 years ago his education would run this high. And yes his loans will be paid back on time so all things being equal I guess I'll be ok. Again Thank you for your reply

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Actually, you're pretty lucky that it isn't more, the average amount of debt for people going to law school is really high!....    my attorney pays a payment of over $1000 per month on the student loans he had while going to a private university law school.  Were the loans for his undergrad education?   

He may be able to consolidate all of the loans into one loan in his name once he's out of school.   Did he maintain good grades and get accepted into law school?

[Braydon]

Right now Fed Loans/Sallie show me at 69k for his undergrad at TTU and his first year of Law School. He scored well on his LSAT and got into a ABA approved school  he starts his second year this August. The Ex-husband has already picked up the tab on some of his education but for him to finish its going to go up from that 69k that shows on my CR to 200k. That is unless his father gets into another check (must be nice) writing moods again and covers the balance over the next 2 years. His loans will be paid in any case he has a job waiting for him as a junior partner with his dad when he passes the bar but it worried me seeing that much debt on my CR.

[marty56]

Per Suzie Orman, since you cosgined a load I would take out a life insurnace policy on your son for the amount of the loan.  I hope you never have to use it but that will also protect your credit if the unthinkable happens.