I have a small-ish student loan in my name. However, my parents take care of that every month. I have never made a payment to it, because they do. Is there some sort of document I can get or some proof I can provide that shows I am not responsible for that bill?
You actually legally are responsible as long as it’s in your name. In a court of law the only way to show you are not responsible is for your parents to be co signers and you prove you are are incapable of paying. Which isn’t the case because you are looking at buying a house…if it’s in your name/on your credit report you are “responsible”, there’s no way around it. But as long as no late payments or missed payments show up your credit report you should be fine. Worst case scenario you would need to write a letter of explanation possibly also have your parents write one too.
There’s a small possibility that this debt will be factored into your affordability regardless. The underwriters like to take guarantees and there is no guarantee you will never need to pay your student loans. There is however a guarantee if your parents can’t then you would have to…they evaluate affordability on worst case scenario.
This reply was modified 1 year, 5 months ago by Nelsont.
Just contact the company that holds the loan and since this involves a 3rd party (your parents) you may have to write an LOE have it notarized with your parents signatures. We ran into a similar situation before we closed.