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You’ll also want to check for state and school-specific deadlines

You’ll also want to check for state and school-specific deadlines

Cosigning a Student Loan

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While you want to help alleviate your child’s debt burden and make it easier on them, you’ll want to set boundaries and be aware of how co-signing a student loan could affect your financial well-being. Parents need to understand that a cosigner is essentially a co-borrower, explains Levy. In turn, they’re on the hook to repay the debt. The cosigned loan will affect the parent’s credit history, too, he says.

So if your child is late with a student debt payment or defaults, it will ruin not just your child’s credit score, but yours as well. Even if the student manages the cosigned loan responsibly, making every payment on time, the loan can affect the parent’s ability to borrow, says Levy. For example, if the parent wants to get or refinance a mortgage, the cosigned loan will count as part of their indebtedness, potentially affecting approval for the mortgage or the interest rate they are charged.

Not Applying to Scholarships Early

As you might’ve guessed, scholarships are one of the most under-utilized tools for most students. The reasons are many, points out Farrington. Scholarships can be hard to find, take time to apply to, and the odds of winning could be slim.

But the beauty of scholarships is that they’re a form of gift aid-and the money is plentiful if students take the time to apply to as many as they can. Don’t forget to follow the instructions and provide all the required documents and information.