Other Is it possible to get guarantor insurance?

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L_earner

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My son needs a bank loan to do a postgraduate course which will increase his earning potential. My wife and I are not very far from retirement, and our combined pension, like our current combined income, will be modest. He is asking me to go guarantor. If we have to, we could cover the loan, but it would wipe out not just our savings, but would leave us paying it off at least until our retirement, and maybe even afterwards. He assures us that his employment prospects are excellent, and it does appear that they are. Of course we want to help him, but we are asking: what if he does not get the salary he is expecting to earn?
So, we are looking at options, and if it were possible to insure ourselves against the risk of him not earning enough to pay his own bank loan, we would probably go for it.
Does anybody on here know if that is even possible?
 
That is not available, are you in a position to loan him the cash yourselves on a loan basis not gift basis, draw up a loan agreement if necessary. personally I would sign a guarantee for nobody not even my kids.
 
Giving him that much cash is not within our means, but even if it were, it boils down to the same question because we would be cleaned out. Thanks for the information.
 
I concur. If the course is that good, he should have little problem getting a student loan. Perhaps take a year out and save, or wait for the launch of 2013 Springboard courses in the next few weeks.
 
OP, do you have any Life Assurance Policies that are free of charge to a lending institution. You could assign this to a Bank as security.

Or else you could take out a term loan policy and have your son pay the premium, to ensure repayment of the loan in later years if not repaid earlier.
 
Any life policy the OP has is realisable upon their demise in the scenario as outlined by Mercman and therefore reasonable supporting security to a PG but jeepers they have to die first...

Regarding the term loan policy are you referring to payment protection cover ?
 
How much money are we talking here? Can your son not get a part time job to pay you back meanwhile? Or work, save and then do the post grad? Has he always been good at paying back his loans in the past etc.

Normally I'd say go gurantor as it's your son and education is a good thing. But this amount could potentially wipe out your savings so that's too risky. For you.
 
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