Legal Question in Credit and Debt Law in New York
co-signing loans
A person is considering co-signing for a student loan for an adult daughter. She is unable to obtain it on her own because she's a freshmen . The daughter has been very irresponsible about money so this person is very hesitant, he's been burned before. What guarantees can he get, if any, that if she defaults on the loan he will not be held responsible. Possibly a promissory note? Will he be held responsible regardless because he co-signed?
Any information you can provide about this situation would be helpful.
1 Answer from Attorneys
Re: co-signing loans
Q. What guarantees can he get, if any, that if she defaults on the loan he will not be held responsible.
A. You will be held responsible under the terms of the guarantee. If she defaults on the loan, you will be held responsible.
Q. If she signs a promissory note, will the obligation continue on the guarantee?
A. Yes. However, you may look toward the daughter for reimbursement.
I suggest that if you undertake this obligation on behalf of your daughter, that you pay the student loan and that your daughter pays you. Have the daughter pay you first. This will eliminate any surprises and a negative credit rating. In general, the person that controls the money has the power.
Mike.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
