Thursday, March 27, 2008

Would you co-sign for your child to buy a new car?

When a family evaluates the available options of paying for college, invariably college loans appear to be the only solution. Rhetorically, one might ask if it is prudent reasoning to co-sign a loan for a 17 or 18 year old----so they can purchase a BRAND NEW $25,000 car??

If this appears illogical, why is it that many families will co-sign for that amount FOUR YEARS in succession to finance a college education.

Is the entire decision motivated by the fact that a college graduates future earning’s potential can be $1,000,000 greater than a NON-college graduate?? The fallacy in that thinking is that the college graduate WILL DEFINITELY EARN that $1,000,000!!

What occurs in the college graduate’s life while she/he is attempting to PAY BACK the $100,000 in accumulated college debt----OR----does the student receive the $1,000,000 differential upon graduation??

Things that make you go hmmmmmmmmmmmmmmmm!!

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