Can co-signing a new car effect financial aid?

Question

I am in a county school right now, but i am going to transfer to a tech school which i will be living on campus. If I co-sign a car will it effect how much i get for Financial aid?

Answer 1

It could....if they default on the car loan ...you are the next responsible party..It happen to a friend of mine...she co-signed for a boyfriend and he defaulted on the loan....it goes on your credit ...just like if you were buying the car....even if they pay like they should...when you get a loan for financial aid ...they will look at you debt...that co-signed car will be on your credit report just as if it was your car...But Financial Aid does work different...then a normal student loan...you should be okay

Answer 2

It shouldn't if you are just going through federal

Answer 3

it wont effect your aid but if you use credit based student loans to supplement standard Fin Aid it could effect your credit score