Timeline for Would it make sense to take a loan from a relative to pay off student loans?
Current License: CC BY-SA 3.0
32 events
| when toggle format | what | by | license | comment | |
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| Feb 15, 2019 at 8:22 | comment | added | Itsme2003 | I have at least 8 friends who have had a bad experience with loaning money to a friend or a relative. I don't have any friends who have told me that they have had a good experience with it. | |
| Nov 23, 2017 at 21:07 | history | protected | CommunityBot | ||
| Jul 17, 2017 at 12:20 | comment | added | Bobson | I suggest asking a new question asking for advice in consolidating or paying down those loans. I'm sure there's something this site can advice to help with that. | |
| Jul 17, 2017 at 9:48 | comment | added | Chris H | What are the terms on your student loan repayments? If you lose your job, can you pause them? Indefinitely? (that's a rough approximation of what happens here as they're collected with taxes) What would the equivalent position be with a loan from your realtive? | |
| Jul 16, 2017 at 1:46 | answer | added | EJoshuaS - Stand with Ukraine | timeline score: 1 | |
| S Jul 16, 2017 at 0:50 | history | suggested | Braiam | CC BY-SA 3.0 |
This is not part of the question.
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| Jul 15, 2017 at 19:43 | review | Suggested edits | |||
| S Jul 16, 2017 at 0:50 | |||||
| Jul 14, 2017 at 20:03 | answer | added | le3th4x0rbot | timeline score: 1 | |
| Jul 14, 2017 at 19:21 | comment | added | gman | I just thought I'd add it's so common to have problems with family loans that someone made a startup to try to deal with them. They'll call a collection agency if you fail to pay for example. NOTE: I'm am not endorsing them in any way. Only pointing out it's such a problem for so many people that someone started a company to manage personal loans | |
| Jul 14, 2017 at 17:33 | answer | added | user32205 | timeline score: 6 | |
| Jul 14, 2017 at 15:17 | comment | added | Nicholas | It's worth noting that this isn't "free" for your MiL. Assuming an 8% market return she could earn over $20k over 5 years, versus the $11k you would be paying her. So what you're saving in interest, she's losing in capital gains. I agree with others that it's too risky, but if you do go ahead keep in mind that she essentially gave you a $10k gift, in addition to the risk she's taking. | |
| S Jul 14, 2017 at 14:18 | history | suggested | Engineer Toast | CC BY-SA 3.0 |
Aligned the decimal points because ... Because?
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| Jul 14, 2017 at 13:51 | review | Suggested edits | |||
| S Jul 14, 2017 at 14:18 | |||||
| Jul 14, 2017 at 13:19 | comment | added | Eric Lippert | In your mind "guaranteed" means "we have good intentions". That's not what "guaranteed" means, at all. Your "nearly guaranteed" is a euphemism for "completely unsecured", so if that's what you mean, say it. | |
| Jul 14, 2017 at 13:02 | comment | added | Kevin | Never, never borrow money from (or lend money to) family or friends. At least, not in any amount that the lender won't shrug off if the borrower doesn't pay it back. $10 bucks because you're going out to lunch and forgot your wallet? Yes. $50,000 to pay off student loans? Big fat no. | |
| Jul 14, 2017 at 1:25 | vote | accept | Ajschuit | ||
| Jul 14, 2017 at 1:25 | vote | accept | Ajschuit | ||
| Jul 14, 2017 at 1:25 | |||||
| Jul 14, 2017 at 1:24 | history | edited | Ajschuit | CC BY-SA 3.0 |
added 221 characters in body
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| Jul 14, 2017 at 1:10 | comment | added | Ajschuit | Definitely good points brought up. She won't be buying a house anytime soon, but would have enough to do so and cover the loan with the sale of her house. But these comments and answers are making me second guess the idea. | |
| Jul 14, 2017 at 1:09 | history | tweeted | twitter.com/StackFinance/status/885667505942929409 | ||
| Jul 13, 2017 at 22:21 | comment | added | user428517 | I don't think it ever makes sense to take a loan from family. Just leads to trouble. | |
| Jul 13, 2017 at 21:18 | comment | added | Grade 'Eh' Bacon | Possible duplicate of What are the pitfalls of loaning money to friends or family? Is there a right way to do it? | |
| Jul 13, 2017 at 20:42 | comment | added | Hart CO | Did you already try to refinance those high rate loans? | |
| Jul 13, 2017 at 20:35 | answer | added | Jay | timeline score: 52 | |
| Jul 13, 2017 at 20:16 | answer | added | quid | timeline score: 22 | |
| Jul 13, 2017 at 20:05 | answer | added | D Stanley | timeline score: 36 | |
| Jul 13, 2017 at 19:46 | answer | added | TTT | timeline score: 11 | |
| Jul 13, 2017 at 19:43 | comment | added | CactusCake | You wouldn't be the first person to borrow from a relative. My only recommendation would be to ensure you formalize it with a contract. Not only does this make the terms explicit and easier to understand / adhere to, it's also important for your taxes so the IRS don't view it as a gift. | |
| Jul 13, 2017 at 19:37 | comment | added | Pete B. | This is the beginning of a tale of woe. Don't do it. Find a way to pay off this massive debt on your own. | |
| Jul 13, 2017 at 19:37 | comment | added | JTP - Apologise to Monica♦ | Won't she need the money to buy a new house? | |
| Jul 13, 2017 at 19:34 | review | First posts | |||
| Jul 13, 2017 at 19:38 | |||||
| Jul 13, 2017 at 19:32 | history | asked | Ajschuit | CC BY-SA 3.0 |