Can I cosign for a loan while declaring a consumer proposal?
September 30th, 2014 by Questions
Can I cosign for my daughter’s student loan if I am going to declare consumer proposal?
Posted from: Quebec
One Response to “Can I cosign for a loan while declaring a consumer proposal?”
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September 30, 2014 at 8:43 am, Doug Stuive, CA | Trustee | CIRP said:
It is understandable that you would want to support your daughter’s education by offering to co sign a loan for her. When you file a consumer proposal your credit rating is negatively impacted. While your credit rating will improve in time, particularly after your proposal is completed, your credit rating will remain poor for some time. As a result it is unlikely that the bank would consider you a suitable co signor for your daughter’s student loan.
Many banks offer loan products for those students that do not qualify for government loan assistance. They understand that students would not have the credit history or income to support a regular loan agreement. In recognition of the future earning potential of students upon completing their studies they often will issue loans that are affordable for students while they are in school.
Even though you many not make a suitable co signor for your daughter you can still help her with the financial burden of education should you have the means within your household budget. If it will not jeopardize your consumer proposal or household money management you can support her by covering some of the loan payments or by providing funds to help with living expenses while she is in school.