हिंदी
Many parents take student loans to pay for their childs education.Most of them do not share this information with their children. To help prevent student debt from taking over their family, parents should talk about their financial situation openly with their children before borrowing student loans.
Talk about your situation
It is never a good idea to hide financial problems from children. By the age of 12, most kids are aware of the family’s financial standing and are often smart enough to let go of any money-related stress. As appropriate, include your kids in family meetings about budgeting and spending.
Who will repay
A conversation is important to know that who will repay the parent’s loans. Angela Colatriano, chief marketing officer for College Ave Student Loans, informed that some families want the child’s name on the loan because he or she is going to repay it.
PLUS loans have less credit requirements than private loans and offer everyone the same fixed interest rate and also PLUS loans also have large origination fees and are available only to parents, guardians and grandparents aren’t eligible. Your aim should be getting the least expensive loan you can apply for.
Go for co-signing
Parents who are up for private loans can sign cosign with the child.It is taken as a family decision.Also co-signing can benefit students in ways that borrowing on your own can’t, such as helping them build credit. Cosigned loan has two applicants, you may get a better interest rate. For example, Allen initially got a much higher rate on a cosigned loan than he expected. The lender told him that was because it combined his credit score with his daughter’s. “I didn’t understand that,” Allen says. “I thought if I’m co-signing and bringing good credit to the equation it should be a better rate.”
He applied with a different lender and got what he called a “much better” rate. Allen plans to take out that loan once his family no longer fund the education.
