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A link has been posted to your Facebook feed. One question is bound to pop up as college students head to campus: “Hey, Mom, would you cosign for a student loan? And too often that knee-jerk reaction is “Sure, why not? Parents and grandparents feel they should help out when it comes to getting a college diploma and contribute to building up all that college debt. Mark Kantrowitz, a college debt expert and senior vice president and publisher for Edvisors. OK, but maybe there should be. On this loan, you’re giving them the keys to your car,” Kantrowitz said.
You’re giving them the ability to ruin your credit. For the student, getting a cosigner increases the chance of being approved for a private student loan. The borrower typically would qualify for a lower rate. Loan rates on private student loans vary based on credit history.