“We wanted to find out how many co-signers are actually feeling the impact of co-signing,” said Nate Matherson, LendEDU co-founder, and chief executive. “Our survey showed that a significant number of parents are, in fact, hurting financially as a result of acting as a co-signer.”

 

 

Student loans are out of control. The national student loan debt is $1.4 trillion with 44 million borrowers. That’s almost $32,000 per loan borrower. States lately have been taking their own approach to making a dent in the massive debt. Most of these approaches don’t address co-signing student loans. LendEDU recently conducted a survey of 500 parents who have co-signed for their children’s private student loans.

“We wanted to find out how many co-signers are actually feeling the impact of co-signing,” said Nate Matherson, LendEDU co-founder, and chief executive. “Our survey showed that a significant number of parents are, in fact, hurting financially as a result of acting as a co-signer.”

One of the most notable statistics that the survey found was that 57 percent of parents said their credit score has been negatively impacted for co-signing on their children’s loans. It’s important to remember as a co-signer that you are as responsible for on time payments as the actual borrower. If you have co-signed a loan for your child and they are late on a payment, that will ding your credit history. In fact, over a third of those surveyed said their children have been late on a payment.

When your credit score hurts, it’s easy for your problems to snowball. Over a third of parents said co-signing for their child’s loan hurt their ability to qualify for mortgages, auto loans, and other types of refinancing options. On top of that, 58% said their children asked for help making payments. Now as a co-signer you could not only be responsible for your child’s missteps but you have to bail them out as well on top of your other bills and if you don’t you will miss out on refinancing options to better your own life.

Over half of parents said their retirement savings were hurt by co-signing student loans. Losing refinancing options and paying monthly payments that your child misses can be pulling directly from the money you were planning to put away for retirement. Lastly, 35 percent said they regretted co-signing for their children.