Significance of co-signing a loan

[Kram BergGold]

Mom co-signed a loan daughter took out at a bank to pay for college. In MA we have a tuition deduction. Only the payer may take the deduction. If no payments are being made on this loan currenlty, then is the Mom's co-signer status enough to make give her the deduction?
My feeling is, if there are current paymetns and they are being made by the daughter or Dad then I definatley would not give the Mom the deduction.

[jimmcg]

Mom co-signed a loan daughter took out at a bank to pay for college. In MA we have a tuition deduction. Only the payer may take the deduction. If no payments are being made on this loan currenlty, then is the Mom's co-signer status enough to make give her the deduction?
My feeling is, if there are current paymetns and they are being made by the daughter or Dad then I definatley would not give the Mom the deduction.

Law of cosigners varies by state jurisdiction. Check with yours. In my state cosigners obligation to pay does not come into effect until primary debtor defaults. No default no obligation to pay. Ergo..................................

[Gretel]

My feeling is, if there are current paymetns and they are being made by the daughter or Dad then I definatley would not give the Mom the deduction.

I definitely agree that person who didn't pay cannot get a deduction. Definition is liable and actually paid.