Talking to your child about student loan repayment

Student loan repayment can be complicated and difficult to navigate. With higher education costs continuing to trend upward, an increasing number of parents/guardians find themselves co-signing their child’s student loans, intertwining their financial futures. Parents need to foster open communication about the responsibilities and implications of handling this significant debt with their children. The information below aims to provide a comprehensive guide on engaging children in discussions about student loan repayment, setting clear expectations, and planning for the future.

Understanding the role of parents in student loan repayment

Parents often play a pivotal role in their child’s education financing, sometimes taking on the responsibility of co-signing student loans. This partnership means that parents, alongside their children, need to understand the gravity of this commitment.

Co-signing a loan makes the parent equally responsible for its repayment, which can have both financial and emotional repercussions, especially if the child faces difficulties in making payments. Both parties must recognize who holds the ultimate responsibility for the debt and be prepared for any potential impacts on their relationship and finances.


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