How Co-Signers Can Get Out From Student Loans

Most private student loans require the borrower to have a co-signer — some credit-worthy adult willing to put his name and money on the line for someone with no income of his own and no repayment history. It’s always risky to be a co-signer. And now the risk is even greater, and not just from the borrower’s potential default.

Why? Because the extra debt from those college loans, especially if you have multiple children, distorts your debt-to-income ratios, and a high debt-to-income ratio can mean the difference between a rejection and an approval on something like a new or refinanced mortgage application. Read more…

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