Crazy husband
Forums:
Ok........dh wants to co sign college loans for his NEPHEW, who is sophomore college! Between us, we have several kids to get thu college. His sister and her husband have terrible credit so they can't pay or cosign. I say oh well, but dh really wants to cosign. I say do what u want, but no sane person would agree, including me! Do you agree with me, has my husband lost it? What are the ramifications for me if he co signs? I said let him get his own kids thru college first. This is nuts!
Are your finances joint or
Are your finances joint or separate?
You can say separate but the
You can say separate but the state may not agree if there is a debt to be paid back.
In community property states both spouses are liable for any debt incurred by either one whether they signed or not. Even if they don't even know about the debt.
This isn't like CS where the spouse's income can't be touched.
It's higher now; almost
It's higher now; almost 10k/yr. undergrad.
Well hrnyc, little Johnny
Well hrnyc, little Johnny does not want to go to community college........in husbands family, many are enabled, including his parents.......which is why his own parents can't get parent plus loan.. Dh swears that this nephew is super responsible, but I told him.........read my lips.....I will not agree......dh says he will not co sign unless I am in agreement, but who knows? Oh the joy of marriage!
DO NOT LET HIM DO
DO NOT LET HIM DO THIS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Student loans can never be written off. If the nephew doesn't pay your husband will be totally responsible. And in many, many states that debt will be half yours even if you divorce later on.
This is really a big deal.
Stafford loans from the government do not require a co-signer. I borrowed a lot of money for undergrad and grad school. All of it from the government. I do not believe in borrowing from those vulture private lenders anyway. If the nephew doesn't qualify for those educational loans he really should not be going to school full time.
I am serious. I would file for divorce before I would let my husband co-sign loans that I might have to pay back. The interest on those loans is ridiculous and compounds like crazy.
Stafford loans do not require a co-signer. If the kid does not qualify for one then he does not deserve to borrow money.
I borrowed a lot of money for both undergrad and grad school. But it was never thru those vulture private lenders.
Yes, yes, yes.
Yes, yes, yes.
Don't do it. If you can stop
Don't do it. If you can stop him, don't let your husband do it. Often, at least in the US, all debts taken on during the marriage, even if only taken out by one person, become the legal responsibility of both parties to the marriage. Student loans that require a cosigner are private education loans; they carry high interest rates with few reduced payment options if the student is unable to find employment. A few even go into repayment 30 or 60 days after disbursement.
I spent a long time working for Sallie Mae; heart breaking stories abound. Don't do it; don't do it; don't do it.
We keep separate bank
We keep separate bank accounts if that s what you mean. I strongly feel this is over the top. I myself have several kids to get thr college and he has one. Sorry, but extended family don't count when it comes to co signing loans,ESP with parents that are one foot away from bankruptcy! My good credit is important to me!
Your good credit. This is his
Your good credit. This is his good credit.
Given that finances are separate, is your DH in a place where he can afford the student loan payments if nephew defaults?
If so, then I see nothing wrong with it. You keep your money separate. You don't get to tell him what he can and can't do with it, imo. For many years, my DH and I kept separate accounts because I didn't want anyone telling me how I could spend it. I finally agreed to join money/assets as a marriage builder, and I have no regrets.
Were you hoping that your DH would help fund your kids? Is that why you're mad? You say you have "several" and he has "one." Maybe adding nephew to his "list" helps a little to even things out.
I dunno...I wouldn't likely co-sign if I was him, but I'm not him. It's his money, his credit, his choice.
Life happens. Many things
Life happens. Many things could happen that would leave the OP having to pay off this debt.
It's his prerogative to spend his money however he wants but he should NOT put the OP in a position to be saddled with huge debts. That's a totally different situation.
It's his money to spend if he has it on hand to personally loan it to the nephew. But he does not. Incurring a debt that obligates the OP is horrible. No decent spouse should do that to their partner. His money his choice - THEIR debt - not his choice alone by a long shot.
They're married, that means
They're married, that means that what affects his credit affects her credit too. Also, because they're married, if nephew defaults it's most likely not going to be considered Just DH's debt. Collections and courts in many many states aren't going to shrug and say, Only his name is on it leave her alone. They're going to say, oh, well you're married, it's your problem too.
Actually, no, it doesn't
Actually, no, it doesn't automatically affect her credit.
If nephew defaults, DH can pay (or not.) No mention that DH cannot afford the payments, btw.
If nephew AND Dh don't pay the loan, it will affect both of their credit. If the creditor were to sue, or the DH file BK, then it could affect OP's credit.
But there isn't a magical, instantaneous connection to OP's credit.
If it Affects his credit,it
If it Affects his credit,it affects her credit. You were saying His credit His choice. But it's not just his credit he'd be putting on the line,it's hers too. Credit isn't particularly magical last time I checked. But in community property states there'd be a pretty instantaneous, magical assignment of half that debt to OP legally if nephew chooses not to pay. And there no mention that OPs DH couldn't make the payments, but there no mention that he afford them either. Or how it would affect their joint household.
Responsibility for the debt
Responsibility for the debt and it appearing on her credit are two very, very different things. I addressed the credit issue.
OP's DH is apparently paying for his DD's law school, so it doesn't sound like his bank account is dry.
Also, I wouldn't do this. I wouldn't co-sign like this. No way. I totally see what others are saying because I agree.
ETA: let's say DH cosigns. It will appear on his credit, and will reflect whether the payments are being made or not. This will NOT appear on OP's credit.
I agree it wouldn't
I agree it wouldn't immediately appear on her credit. But if it went it to default,it likely would.
And I don't know about the logic with law school payments... I would personally think that if the guy is paying for law school unless he makes a Lot of money (which is possible of course) that because he's paying for law school he wouldn't be any too flush.
Either way, I still think its a terrible idea and I think because there is the possibility that it could impact his wife financially or credit wise it shouldn't be a just his decision type of thing.
Ottewater.....we both make
Ottewater.....we both make our own money........meaning we do not need the other to play our bills. I worry that this will affect our credit and even if nephew doesn't default.....it will affect my own three kids that are presently in college or will e there ina few years. Dh has one kid still in college and she is going to law school. Who knows what life will bring? This is so unnecessary, and too cavalier..
If the nephew doesn't
If the nephew doesn't default, I don't see how it will affect all this other people in school.
Honestly, I'm not defending him. I tend to think people should pay for their own college, for the most part. I've helped my two older ones at the community college level, but they had to work and get good grades. They want a law degree? Pay for it their damn self.
The kid's parents got turned
The kid's parents got turned own for parent plus loan so dh getting a sob story about poor Johnny. Poor Johnny can go to a community college like my own kids!!!
Ramifications for you ...
Ramifications for you ... Well, your DH is basically saying that if nephew doesn't pay on the loan, DH is responsible. Because you are married it will likely be viewed as marital debt if it comes to that. If nephew doesn't pay and DH doesn't pay, it will affect your credit because you are married. If it goes to collections, because you are married, a company may try to go after your assets even if your finances are separate. Whether they are actually able to or not, I don't know. But they could certainly go after any joint accounts you have with DH and if you file jointly, they could go after tax returns etc if it ever went to court.
Otherwise, you'd simply have the joy of deal with collection calls etc.
It's a terrible idea. It could affect his ability to cosign for his own children (not sure how old the kids are) and it could def affect the ability finance things like houses or cars in the future. It going to collections and dinging your credit can affect your ability to cosign for your kids in the future. I don't know how honorable, etc nephew is, but ergh, I would not go for this. And I personally wouldn't let it go with a "do what you want" either.
Husband thinks I am so cold,
Husband thinks I am so cold, but I think he is the biggest enabler going. This is not negotiable . I told husband tonight that nephew Johnny can go to a community college who the f!..x cares! He needs to get his head out of the clouds,that is how his sister operates..........she gets money from everyone in the family and milks it for all she can get.
If the kid had any academic
If the kid had any academic achievements he could most likely get financial aid as his parents' situation is so crappy. Since he never worked hard enough to earn scholarship money (or is just not that bright) he doesn't DESERVE to go to an expensive school on someone else's dime.
I know a young woman who went
I know a young woman who went to community college for two years and then was admitted to USC (So. Cal) and finished cum laude 2 years ago.
A man I know went to community college and then transferred to Stanford where he got his degree and went on to graduate school there also.
Both of them worked their buns off in CC. Nephew could do this too if he is willing to work very hard.
Southern Cal is a fine, fine school. And well Stanford is at the top of the heap.
I have a very, very wealthy
I have a very, very wealthy brother. I mean like multiple estates around the world and buckets of money - more money than some rock stars.
But I have never asked him for a dime - even when I was unemployed for a long time and lost my home during the early 80s. Not when I had to pay our father's care in a retirement home. Not when our sister had to have multiple brain surgeries and couldn't work and I supported her. Of course he's never offered any help either.
Let me clarify some things
Let me clarify some things about one's credit. Owing large sums of money affects your credit score. It is not just being late or not paying that will decrease your credit score.
If her DH borrows money for his nephew he may not be able to borrow money for his children. Even if the nephew is current on his payments.