[mack824]

I co-signed on several private student loans for my son. He has to start paying them in six months from now. I know I am responsible for these loans as co-signer. I am currently unemployed, and receive a small pension check. What I would like to know is should my son default on these loans, can the banks put a lean on my home?

[cindychick06]

You can get the loans deferred if you have a financial hardship. That's what I had to do on my loans for school. I had a parent plus loan in my parents name and I had to start paying that back. I just had the money directed debited to my banking account, you can set that up for your son too if he has a job and can pay them. You can also get the payments lowered if you apply for it. I don't know about the lean on your home but I do know that if you contact them they usually will work with you to get the payment taken care of

[Fr_Chuck]

It is normally the last thing, and is not possible in every US state.

What you need to do, is to be sure that the son pays for his loan, not you, and they will go after him first

[JudyKayTee]

It's lien, not lean - yes, if your son defaults you, as co-signer, are next in line to pay. Student loans are the exception when it comes to assets which cannot be taken to pay a debt - even SS can be taken.

If your son wants to consolidate (if the State allows it and he is otherwise eligible) he very well may still need a co-signer and that still puts you in line to pay the debt.

You have to explain to him that if he defaults you could lose your home.