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Help with Granddaughter's Student Loan - The Bills.com Blog
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Help with Granddaughter's Student Loan
Tuesday, Jul 21, 2009
Question: I co-signed for my granddaughter's student loan, she has contested the lone for apro. 2 years now my credit is being affected. What can I do to control the affects on my credit?
Answer: As a co-signer to the loan, your granddaughter's student loan and its payment history will directly affect your credit. (This could be either positive or negative.)The only way to have this not have this impact your credit is to have this debt eliminated, either by paying it off, or having the loan consolidated into a new loan that does not have you as guarantor (perhaps have your granddaughter apply for a loan on her own or with another family member).
You should also know that most student loans can not be discharged though bankruptcy and have no statute of limitation regarding their collection, so these loans will stay on your credit report as long as they are still unpaid (and once it is paid, the loan's payment history will drop of your credit after 7 years).
This is a tricky financial situation, so you may want to consult with a qualified financial planner
that specializes in college financing issues. Your granddaughter's school most likely has a student aid office. You should contact them directly, as they may know about special assistance programs offered by the school, your state, and other organizations.
Below you will find links to several websites that provide loan quotes, alternative repayment programs (such as consolidation), as well as other information that may help you and your granddaughter lower your monthly payments, a lower interest rate, and/or flexible repayment opportunities:
Bills.com site offers an easy way to apply for a various forms of student loans assistance, and has additional information regarding student loans on
Below you will find links to several websites that provide loan quotes, alternative repayment programs (such as consolidation), as well as other information that may help you and your granddaughter lower your monthly payments, a lower interest rate, and/or flexible repayment opportunities:
Bills.com site offers an easy way to apply for a various forms of student loans assistance, and has additional information regarding student loans on
the website.
The US Department of Education's Borrowers' Services website specifically addresses student loan consolidating and other repayment options at: loanconsolidation.ed.gov .
Another great site for student loan information is studentloanborrowerassistance.org .
Finally, if the loan is hurting your credit, you may be able to off-set some of the damage by strengthening your credit profile with other, healthier, accounts. You can visit building credt from scratch, to learn more about improving your credit.
I wish you the best of luck as you look to mitigate the effects your granddaughter's loan on your credit, and I hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com/blog/
The US Department of Education's Borrowers' Services website specifically addresses student loan consolidating and other repayment options at: loanconsolidation.ed.gov .
Another great site for student loan information is studentloanborrowerassistance.org .
Finally, if the loan is hurting your credit, you may be able to off-set some of the damage by strengthening your credit profile with other, healthier, accounts. You can visit building credt from scratch, to learn more about improving your credit.
I wish you the best of luck as you look to mitigate the effects your granddaughter's loan on your credit, and I hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com/blog/
Also, make sure to get a free financial health check-up with Bills IQ!
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