Students could face big surprise with private loan

Students could face big surprise with private loan

Photo: Associated Press

KGMI News Reporting
By Tracy Ellis

SEATTLE, Wash. – Students who take out private loans to pay for college could face a nasty surprise if their co-signer dies or files for bankruptcy.

The lender may suddenly demand the loan be paid in full or even worse, put that loan in default, even though all payments are being made on time.

Consumerman Herb Weisbaum wrote about it in his column for NBC

Play Herb Weisbaum on private loans

Federal student loans rarely require a co-signer and even when they do, there is no auto-default penalty.

Private loans tend to have higher interest rates and fewer protections than federal loans.

Recent Headlines

in Black Friday, Lifestyle, National

Black Friday crowds thin in subdued start to holiday shopping


America's annual Black Friday shopping extravaganza was short on fireworks this year.

in Sports

The weekend sports schedule


From the Associated Press, here’s a look at some of this weekend’s major sporting events. All times are listed in…

in Black Friday, Viral Videos

WATCH: Holiday parodies of the year’s biggest hits


From "Bad Blood" and "Watch Me," to "Uptown Funk," here are the year's hottest songs made fit for the holidays.

in Sports

Cowboys’ Romo ‘done for season’


Dallas Cowboys veteran quarterback Tony Romo will miss the rest of the National Football League season after re-injuring his collarbone for the second time in 10 weeks, according to an ESPN report.

Bellingham Traffic