Should I cosign on a student loan for a friend?

Answer by  britt01 (292)

If your friend needs someone to cosign for them, then they have been irresponsible with money making decisions. If they default, then you will owe the outstanding balance.

Answer by  technogeek (6640)

There should be no need to co-sign because financial aid is based on need and if your friend qualifies for financial aid, then they should be able to get the loan. I do not suggest co-signing.

Answer by  Kurt (4579)

You should only cosign on the loan for your friend if you are prepared to pay it for your friend. Hopefully your friend will pay off the loan with no problems, but sometimes things happen that are not expected. If your friend cannot repay, you will have to pay. Is your friendship worth that?

Answer by  tamarawilhite (17883)

No. Do not cosign for the loan. If the friend defaults, you are now legally obligated to pay their student loans. And their non-payment will hurt you credit score. This is like taking on a mortgage for a house you do not live in, and unlike a mortgage, you could not even get out of the loan via bankruptcy.