Why do parents of emancipated children need to sign for government student loans?
When a child is over the age of 21, and child applies for student loan, the parents should not be on the hook for any pay backs if it’s in the adult child’s name right?
A child’s parents are not signing the loan as a parent as much as they are co-signing as someone else who will take the responsibility of seeing to it the loan is paid if said child slacks off. Mostly, it has to do with the fact that most 21 year olds haven’t built up enough credit or they don’t have enough collateral to back up a student loan that is often quite substantial, depending on where they are going to school.
By no means is a parent REQUIRED to co sign. If you don’t want to, don’t. Junior can work his or her way through college, or pick one that is a bit less expensive, or find someone else, like grandparents or anuties and uncles to co-sign.
