That is where you are wrong. The parents aren’t the co-signers for these loans, the Federal government is. That is why they are “Federally guaranteed” student loans. In 1988, when I was 18, I signed a loan document for $6,500 despite having no credit history, no job, and no plan for paying it back. My parents didn’t sign a thing. And Uncle Sam was the one who had to pay back the loan if I wouldn’t or couldn’t. It’s a no loss for the financial institutes, and a huge loss for the taxpayer.
I say end the program, starve the modern University system of it’s endless supply of money, and make a college education a valuable commodity.
To: Anitius Severinus Boethius
That is why they are Federally guaranteed student loans. In 1988, when I was 18, I signed a loan document for $6,500 despite having no credit history, no job, and no plan for paying it back.
Parents would co-sign a loan if the incoming student is nder 18. Also, there are several student loan programs, some of which can involve parents. Besides the Stafford and Perkins loans (NDSL/GSL), there were also PLUS and ALAS. There may be equivalents today.
posted on 11/30/2012 7:05:48 AM PST
by Dr. Sivana
(There is no salvation in politics.)
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