It is quite common today for student loans to be co-signed by parents and guardians of those students who are borrowing. In fact, almost 94% of all student loan dollars in the first three quarters of 2014-15 school year were co-signed. But the Consumer Financial Protection Bureau has some warnings for parents vouching for their kids in that way.
Co-signers may be unable or find it much more difficult to obtain other forms of credit. They may not be able to refinance a mortgage and they may find themselves paying higher interest rates than they should on future loans.
So what’s the best way for parents to proceed? For more, read the full article here.