I am starting grad school in the fall and my parents and I decided that the interest rate on a student loan is too high to be worth it so even though they did not budget for grad school they decided they will pay then I will pay them back (so it is an informal loan from the Bank of Mom and Dad). Does anyone have recommendations about how to structure this?

0
0
Marked as spam
Posted by Maggie Bussard (MONEY FORUMS: 4, Answers: 0)
Asked on April 8, 2016 12:39 pm
66 views
0
Private answer

When I borrow money from my mom I set an interest rate that makes us both happy and a term. I also make sure my sister know so if something happens, I keep it fair by paying half back to my sister instead.

Marked as spam
Posted by Pauline Paquin (MONEY FORUMS: 0, Answers: 7)
Answered: April 11, 2016 10:55 pm
0
Private answer

You can mirror the payment terms of an existing student loan, but without the high interest. Set a date you will pay them, an amount, etc. And be sure to be open and honest!

Marked as spam
Posted by Melanie Lockert (MONEY FORUMS: 0, Answers: 65)
Answered: April 8, 2016 6:02 pm