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Going by my past experience as a student loan debtor, any cosigner was also a principal debtor, even if the note (or the servicer) would allow a few months to go before going after the cosigner.

The student loans that are guaranteed to graduate students don't typically need a cosigner (what used to be the Stafford loans, now Federal Direct Loans).

Since we are talking graduate (including a law degree) and undergraduate degrees, I was thinking in terms of Grad Plus loans or private loans (which might require cosigners). In those cases, where the parent and daughter are both directly liable on the note, my statement stands (direct payment on the loan would not be a taxable gift). Presumably, this would be the case in some private consolidations, as well.

I agree, if serving more as a guarantor (on a private loan interest negotiation or the like), where his/her liability is more contingent, it would be murkier.

Also, and it is too late for this, but if one were to directly pay any/all tuitions of another directly to the school, that is a non-taxable event as well.
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