Why you shouldn't co-sign your grandkid's student loan
College financial aid offers have been sent out, and the traditional May 1 deadline for high school seniors to pick their schools is fast approaching. That means all across this great land of ours, grandparents are getting hit up by would-be college students desperate to use their elders' good credit.
Federal student loans don't require co-signers, but private student loans typically do. If the student's parents don't have good credit scores or aren't willing to co-sign, a loving grandparent may be asked to step in.
Most of the time, the grandparents should say no. Here's why:
—The loan will show up on a grandparent's credit report and can have an impact on their ability to borrow money.