My Parents are Buying One of My Student Loans
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As part of my 2010 financial goals, removing at least half of my higher interest student loan was second on the list. Last week, my mom questioned me about how I was doing regarding student loan repayment. I let her know that I was paying the minimum amount on the loan at the lower interest rate while paying as much as possible on the high interest loan.
My mom consulted my father and decided that it was pointless to have me pay $400+ in interest this year when they have the funds to pay it off. But, of course, I’m not getting away scot-free here. Essentially, they will be buying my student loan and I have to pay them back.
What started out as a 10-year loan at 6.441% APR will be an interest-free loan with an indefinite duration. How great are my parents?
Many may think though:
Hey! This guy is just another deadbeat like many of the other college grads who says they’ll pay their parents back when they borrow money. Then they end up being 40 years old and still haven’t given a dime back.
None of my plans have changed though. Without a doubt, I do not expect owing money to my parents for more than the next few years. My goal is still to pay off at least half of the balance that I will owe my parents. This is definitely going to reduce the amount of stress and worries that I have on my ability to pay off these loans – while at the same time saving money.
(Photo credit: Perfecto Insecto)
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frugalscholar said:
I would do the same for my kids. This says a lot about your family.
January 27th, 2010 at 6:13 pm
[...] my parents bought out one of my student loans, I used the figures from my January student loan statement. On about $8,800 of college debt, I paid [...]