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My mother currently has a Home Equity Line of Credit with her bank for about 40k (I'm not sure of the exact figure but it is around there).

For the school I am planning on attending, I will need to take out a loan of about 30k for the first year alone, and then about 15-20k the following 3 years. In total I will have to borrow somewhere around 90-100k more or less. That's a lot of money. I am aware of the responsibilities involved, and I am confident that if I get into this school I will have a well paying job after graduation.

Of course as a 22 y/o college student I have no credit, and unfortunately I do not have any other family willing or able to cosign for me. I guess what I am worried about is being denied the loan because I need a cosigner and my mother already has her HELOC through the bank. I know her credit is good and she has made every payment on time.

Does anyone have any insight?
Does a HELOC effect your ability to cosign a private student loan?

I would really appreciate any answers as I am trying to get an appointment with my mother's banker but currently I am just left to worry. Thanks a lot!

  • There's no generic answer to this. It just depends on whether the bank is satisfied that she can and will pay it off if necessary. – BrenBarn Sep 7 '16 at 4:50
  • What will your expected salary be upon completion of this program? If it is less then 300K/year (starting), I would suggest a different course of action. – Pete B. Sep 7 '16 at 11:51
  • @Pete B. I don't know that I agree with the 300k/year figure but the point is valid for sure. Expected income is a huge factor in this decision. – homer150mw Sep 7 '16 at 14:50
  • Okay, I'll bite @homer150mw. If a person had no money and wanted to spend 100K on an education what starting salary would they have to make? Also given is that there is no plan for living expenses during the 4 years. When you consider that a person could work and attend a state school for most programs and accumulate little or no debt, then (to me) 300K is a good figure when you consider risk and opportunity cost. – Pete B. Sep 7 '16 at 14:57
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    @Pete B. My point is depending on the degree it might be justified. Try getting a medical degree without debt. It might be a graduate level engineering degree. To make a blanket statement that it is always wrong to have significant debt for a degree is a bit shortsighted. I agree with you that it is usually a bad idea, just not always. – homer150mw Sep 7 '16 at 18:42
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Depends on how close to her limits she is now -- it's entirely up to the bank.

  • This is a simple answer but it really is the best answer for the question – homer150mw Sep 7 '16 at 16:20

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