I was recently asked a question by a reader about the drawbacks of getting a private student loan.
She asked why she shouldn’t get a private student loan, when interest rates are so low right now. She would need to cosign with her daughter on the loan in order to get the best rate.
My advice was as follows: the biggest danger of a private student loan is that the cosigner is also liable for the debt. So, should something happen to her daughter, and she can’t graduate and earn income, she will be on the hook for the debt.
However, there are options to protect parents when it comes to paying their children’s tuition – tuition insurance.
Below, we’re giving you our best insights into tuition insurance and sharing our top picks for tuition insurance providers.