Is it realistic for your kid to pay for college on their own?

[DizBelle]

PSA for anyone who co-signs a loan for a student: Make sure you get life insurance on the student. If the student were to be stuck by lightening and killed walking home from his graduation, you could still be responsible for repaying the entire loan.

No personal experience, but I read a couple of news articles where parents were having to pay off huge debts for an education that was never used to earn any income because the student had died. Very difficult - and avoidable.

http://money.cnn.com/2014/07/28/pf/parents-student-loans/

It is tragic but death does not make a debt you signed for go away. If you co-signed on the loan, you are responsible.

 

[gwynne]

It is tragic but death does not make a debt you signed for go away. If you co-signed on the loan, you are responsible.

Actually the rules depend on the lender's policies.

As an example, Wells Fargo has this policy: In the event of the death or total and permanent disability of the student borrower, the loan can be forgiven and the student borrower and cosigner will not be responsible for repayment.

To find the info, click on cosigner release tab
https://www.wellsfargo.com/student/cosigner/

 

[DeaverTex]

Is it realistic? Not really, if you expect said kid to graduate in a reasonable amount of time.

 

[Goofy_Disney_Dad]

It is tragic but death does not make a debt you signed for go away. If you co-signed on the loan, you are responsible.

My sister just recently helped my niece obtain some private student loans and had life insurance pay off stipulations added for both individuals. It is highly recommended by most private lenders and didn't cost as much as I thought it would either.