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Released: August 19, 2012

Parent who co-signed student loans is saddled with debt

Source: Liz Weston, L.A.Times (Free Registration)

I co-signed some private student loans for my youngest child. She graduated two years ago with about $80,000 in student debt, including federal and private loans. Like many other recent graduates, she has had a difficult time finding a job. . I have been helping her make reduced payments and she has gotten deferments and income-based repayment plans. But I'm planning to retire in a few months and won't be able to make the payments as I have been. As you know, these loans typically can't be shed in Bankruptcy Court and there is no statute of limitations on how long collectors can pursue this debt. Even your Social Security benefits aren't safe: In 2005, the U.S. Supreme Court upheld the government's ability to offset Social Security disability and retirement benefits when a borrower has defaulted on student loans.

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