I ran across this article about parents being court ordered to pay back their child’s student loan debt from the Wall Street Journal not too long ago and was shocked and amazed by what it said.
The article states, Lenders who extended $132,000 in student loan debt to Kristina Pietras before she dropped out of the University of Toledo knew she couldn’t afford to pay back the student loan debt.
But they convinced a bankruptcy judge that her parents could pay back the student loan debt.
Yes, her parents were COURT ORDERED to pay back the daughter’s $132,000 student loan debt. The parents even tried to file bankruptcy, but even filing for bankruptcy didn’t make the student loan debt go away.
Wow! Parents, BEWARE! You could, in fact, be held responsible for your child’s student loan debt if you co-sign on a loan.
The articles continues on to discuss other cases where parents, and even grandparents, were court ordered to pay back the student’s student loan debt when the student defaulted on the loan.
Could you imagine having to pay back another person’s student loan debt? You didn’t even get to reap the rewards of the student loan debt, but you are still responsible for it.
So the moral of this story is parents, only sign your name as a co-signer for the student loan debt if you are prepared to pay them back yourself. You don’t have to get student loan debt to pay for college. There are other options.
If you would like to hear about other options that are available to fund your child’s college, email me at: email@example.com
To view the article, go to: http://blogs.wsj.com/bankruptcy/2012/10/29/soured-student-loans-bankrupt-parents-grandparents/
Leave a comment letting me know how you would feel and what you would do if you were court ordered to pay back your child’s student loan debt.
By: Shanice Miller, Founder of DebtFreeCollegeGrad.com