Comments on: co-signer of a student loan http://app2us.com/blog/funding/co-signer-of-a-student-loan/ A resource for students applying to Universities in USA Sun, 11 Dec 2011 20:34:33 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: canon http://app2us.com/blog/funding/co-signer-of-a-student-loan/comment-page-1/#comment-664 canon Fri, 15 Jan 2010 08:05:14 +0000 http://app2us.com/blog/funding/co-signer-of-a-student-loan/#comment-664 <strong>A Good Read</strong> Very helpful info thanks A Good Read

Very helpful info thanks

]]> By: weider http://app2us.com/blog/funding/co-signer-of-a-student-loan/comment-page-1/#comment-663 weider Fri, 15 Jan 2010 07:14:03 +0000 http://app2us.com/blog/funding/co-signer-of-a-student-loan/#comment-663 <strong>A Good Read</strong> Very helpful info thanks A Good Read

Very helpful info thanks

]]> By: alaivani http://app2us.com/blog/funding/co-signer-of-a-student-loan/comment-page-1/#comment-456 alaivani Sat, 10 Jan 2009 23:05:17 +0000 http://app2us.com/blog/funding/co-signer-of-a-student-loan/#comment-456 Thanks app2us. I been following your blog for about 6 months. You provide a lot of good information. Thanks app2us. I been following your blog for about 6 months. You provide a lot of good information.

]]> By: app2usadvisor http://app2us.com/blog/funding/co-signer-of-a-student-loan/comment-page-1/#comment-449 app2usadvisor Mon, 05 Jan 2009 10:36:23 +0000 http://app2us.com/blog/funding/co-signer-of-a-student-loan/#comment-449 alaivani, Thanks for the insightful comments. Your blog http://alaivani.com/ is interesting. -app2us advisor alaivani,
Thanks for the insightful comments.
Your blog http://alaivani.com/ is interesting.
-app2us advisor

]]> By: alaivani http://app2us.com/blog/funding/co-signer-of-a-student-loan/comment-page-1/#comment-448 alaivani Mon, 05 Jan 2009 01:50:48 +0000 http://app2us.com/blog/funding/co-signer-of-a-student-loan/#comment-448 This is a thought provoking post. I am not a financial expert, but have some information that may be important. I have a few thoughts to add. 1. A cosigner is a second person who signs on a loan in case the person taking the loan can't pay it. Since uncle in US has to be totally responsible he is not the cosigner he 'owns the loan' so to speak, since the student in India has the luxury of not having his or her name on this loan anywhere. But also... 2. The loan can not be termed a student loan because student loans can only be awarded to those who are currently students. They have to present to the bank a letter of acceptance from the college the loan will be applied to. This means... 3. The loan most likely has to be a 'equity line of credit' or a 'home equity line of credit.' Home equity line - These loans are taken out against the amount a person has invested in their home. In some cases, if these are in default, a person can loose their home. (This has led to the housing crisis in US) Regular equity- generally offered by credit card companies, rarely by banks not affiliated with credit cards. Regular and home equity credits may have a higher interest rate than a standard student loan. Also with the situation today's economy in US is in, having one of these awarded is rare unless you have a good FICO score. This score is calculated on how much debt a person has and how good they are at paying it off (paying it on time, in full, etc.). So, if you have an uncle in US take out a loan for student loans, he may compromise his FICO score, making it harder for him to get credit cards and loans later for himself if required. Another concern is that student loans typically do not have interest applied to it or have to be paid back until you graduate and can be put on deferment (sometimes at zero % interest) if you are, for instance out of work or go back to college. However with the loans an uncle would have to get for a student from abroad, these loans generally will have to be paid back from the following month at the given interest rate of the bank which is calcuated on a daily basis generally. So if it can't be paid back in the next month or so, the payments increase incrementally. There are chances credit card companies give out 'loans' with 0% interest for 6 months to a year, but if the loan is not paid off in full before the 0% interest period ends, interest is applied either on the entire balance or what is left over (depending on the bank's fine print). Hope this is helpful. This is a thought provoking post.
I am not a financial expert, but have some information that may be important.

I have a few thoughts to add.
1. A cosigner is a second person who signs on a loan in case the person taking the loan can’t pay it. Since uncle in US has to be totally responsible he is not the cosigner he ‘owns the loan’ so to speak, since the student in India has the luxury of not having his or her name on this loan anywhere.

But also…
2. The loan can not be termed a student loan because student loans can only be awarded to those who are currently students. They have to present to the bank a letter of acceptance from the college the loan will be applied to. This means…
3. The loan most likely has to be a ‘equity line of credit’ or a ‘home equity line of credit.’
Home equity line – These loans are taken out against the amount a person has invested in their home. In some cases, if these are in default, a person can loose their home. (This has led to the housing crisis in US)
Regular equity- generally offered by credit card companies, rarely by banks not affiliated with credit cards.

Regular and home equity credits may have a higher interest rate than a standard student loan. Also with the situation today’s economy in US is in, having one of these awarded is rare unless you have a good FICO score. This score is calculated on how much debt a person has and how good they are at paying it off (paying it on time, in full, etc.).

So, if you have an uncle in US take out a loan for student loans, he may compromise his FICO score, making it harder for him to get credit cards and loans later for himself if required.

Another concern is that student loans typically do not have interest applied to it or have to be paid back until you graduate and can be put on deferment (sometimes at zero % interest) if you are, for instance out of work or go back to college. However with the loans an uncle would have to get for a student from abroad, these loans generally will have to be paid back from the following month at the given interest rate of the bank which is calcuated on a daily basis generally. So if it can’t be paid back in the next month or so, the payments increase incrementally. There are chances credit card companies give out ‘loans’ with 0% interest for 6 months to a year, but if the loan is not paid off in full before the 0% interest period ends, interest is applied either on the entire balance or what is left over (depending on the bank’s fine print).

Hope this is helpful.

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