When you co-sign for a student loan, you are not the backup borrower. You are on the line for the entire loan balance should your grandchild not pay.
When seniors default on federal student loans, their Social Security benefits can be docked to repay the debt. As much as 15 percent of your benefit payment can be withheld. If there is a silver lining, it’s this: Your Social Security benefits can’t be dunned for defaulting on private student loans. But the lender can still take you to court to try to collect the amount due.
Read more: Can Student Loan Debt Eat Up Your Social Security Benefits?
“The number of people over 60 struggling with college student loans is snowballing,” reported Gail MarksJarvis for the Chicago Tribune. “For most, the struggle is not a hangover from their own college days. Rather, the strain is coming from helping their children and grandchildren pay for college.”
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