Originally appearing in Business Insider on Aug. 21, 2023, Ayelet Sheffey talks to Anna Anderson about one of the more common and innocuous-sounding actions a borrower might take — bringing on a cosigner. While cosigners are necessary to help out borrowers who may not be able to afford the terms of their loan on their own, the agreement can end up leaving the cosigner in a hole that’s tricky to escape.
“Someone who is just looking to help their loved one get the education that they think they deserve, those folks, when they sign up for these loans, they don’t always understand the financial consequences and risks that come with these and how difficult it is to you remove yourself from that loan once you’ve agreed to be a cosigner.”
Anna Anderson, staff attorney with the National Consumer Law Center
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