Removing loans from students name?

Anonymous · ‎05-12-2009

Hello everyone,

Searched for the answer but couldn't find it:

Is it possible for student loans to be taken off of my (students) credit report and put onto cosigners (dads) solely? I have amazing parents and they consider it their "responsibility" to take care of our college costs (REALLY amazing parents) and my dad makes the payments of $156 a month. My gross is $2000 month, so the $156 is a big chunk of my DTI, even though I am not technically paying it, it still shows on credit reports when I try to get a loan. This may be a wild question and the answer is probably a simple "No" but I thought I would check. My dad is trying to help me get my credit up as much as I am and we thought this would be a good way to get rid of some debt. (I still have 2 CCs in my name and a personal loan so it isn't like my loans are the only thing showing I have a payment history.)

Thank you!

LynnInMN · ‎05-13-2009

No, cant be done.

Ex-Financial Aid Officer

Ex-Student Loan Collector

Anonymous · ‎05-13-2009

Thank you!

203bravo · ‎05-14-2009

get dear ole dad to take a personal loan and pay off the SL. SL balance $0, you have a paid for TL, and dad continues to pay the SL. Easy Peasy.

Anonymous · ‎05-16-2009

@203bravo wrote:
get dear ole dad to take a personal loan and pay off the SL. SL balance $0, you have a paid for TL, and dad continues to pay the SL. Easy Peasy.

Usually student loans are lower interest than regular personal loans. By asking Dear Ole Dad to refi in such a way, you would most likely be asking him to pay higher interest rates. Then not only is he amazingly taking financial responsiblity, but taking a hit in the cost of the money.

Here's my suggestion: Even though Dad agrees to pay, you pay on top of what he pays, then debt gets paid much faster and that "paid" TL comes along much sooner. Dad will still have paid a substantial amount, but you will have assisted in your own financial and credit improvement and shown Dad how much you appreciate his contribution to the education. Just another idea

But, if you and your father agree for him to pay 100% and you want it out of your name, possibly a no fee HELOC with low interest would possibly work.

Message Edited by txjohn on 05-16-2009 02:27 PM

203bravo · ‎05-16-2009

True. I never claimed it would be cost savings or cheaper.. just a possiblity to accomplish the goals of the OP.

Anonymous · ‎05-18-2009

@203bravo wrote:
True. I never claimed it would be cost savings or cheaper.. just a possiblity to accomplish the goals of the OP.

I realized that, I just wanted OP to understand that dynamic before making a decision.