"Cosigning your kid's private student loan can put your credit score, your retirement, and even your relationship with your child at risk."
"There are 42.8 million federal student loan borrowers who owe a total loan balance of $1.693 trillion, which represents 90.9% of all student loan debt."
"Borrowers do not need to meet credit or income requirements to qualify for federal student loans, making them more accessible than private loans."
"Private student loans make up only 9.13% of all student loan debt, for a total loan balance of $133.4 billion."
Spring brings college acceptance letters, prompting many parents to worry about funding education. Families can mitigate costs by filing FAFSA, applying for scholarships, and comparing college offers. However, a funding gap often exists between federal aid and total costs, leading over 9% of students to seek private loans, typically cosigned by parents. Cosigning can jeopardize parents' credit scores, retirement savings, and relationships with their children. Federal loans dominate student debt due to easier qualification and government protections, while private loans represent a smaller portion of total debt.
Read at Fast Company
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