My Parents Charged Me Interest on a Loan
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- Опубліковано 28 вер 2024
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It was $3000 in interest on $15,000 over 7 years. Four years in college and 3 years to pay it off. That is more like 2.85% interest.
Exactly! The parents were quite reasonable.
It was 3 years.
@@jimmymcgill6778 They loaned her money for 7 years total, and she was expected to pay it off in 3.
@@chaddaniel254 exactly! Couldn’t even get a mortgage at 3% then much less an unsecured loan.
I borrowed my first down payment from my parents at current interest rates. I paid it off in 10 years WITH interest and am SO grateful that they were able to help me avoid PMI.
My parents also charged me interest. I was happy to have my parents getting the interest. I would rather give them the interest then the bank.
PMI is like $60. If you’re in a position where it makes that big of a difference, you really can’t afford the house
20% interest wasn’t too high. It was charged one time not compounding.
Consider that she borrowed $15,000 over 6-7 years. That’s only aprox 3% a year.
The interest rate was very reasonable and likely BELOW market.
how you know it's one time?
@@tkdevlop that’s what she said. Borrowed 15k and paid back 18k for college. $1k interest per 5k borrowed paid back within 3 years from graduating.
Exactly!
@@tkdevlopDid you not understand the video?
It’s not 20%. It’s more like 3-4% annually.
Gratitude is lacking. She doesn't even understand how ungrateful she is.
I didn't hear lack of gratitude in her question. She said she is "wondering" if they took advantage of her and it was useful to hear that she only started wondering AFTER her husband criticized her parents.
@curiouscat3384 if she understood math, she would understand that she was not taken advantage of and could be grateful for what her parents did to help her, help herself.
@@rhondavigil795 And that's where Rachel and Ken failed. Give her credit for calling in for help and they should have slowed down, gotten the facts, and done the math with her. I didn't know that stuff in my 20's. Her husband is who started all the questioning
@@curiouscat3384 I agree. No one knows how interest works until they have to borrow money from a real institution. If there was any downside at all to what the parents did, it would be that they prevented her from having to learn that lesson by getting a real loan....But I think she is NOW learning how interest works and that her parents did NOT take advantage of her and, to the contrary, DID help her in an appropriate and non-manipulative way.
@@macoeur1122 well said! :)
Husband blasted for sharing his opinion. She’s the insecure one with what SHE thinks after hearing someone else’s opinion. Grow up a little more smh.
Good thing she paid up so the parents didn’t have to break her knee-caps! 😂
😅😅😂
🤣🤣
She is NOT a victim! Permanent Victim Mindset!
They've been making bad financial decisions and these grownups aren't taking accountability.
I think her parents charged 16% interest which is high..... a bank would have been 6%.
@@Anniefawesome She paid the extra interest for the financial grace option. If something bad happened between her and the loaning bank, she would have went to her parents to bail her out, all they did was offer her financial protection for a just in case scenario. With the bank, if she defaulted, her credit would've been ruined. Pay the parents the interest and keep it moving. Life is funny, she may need to borrow from them again in the future.
@@Anniefawesome 20% over a 3-year (plus time in school 4 yrs.) loan is not high. That sounds like 3-4% annually.
@@Anniefawesome Wrong. She paid the loan back 6-7 years after borrowing it....That's somewhere between a 2 and 3% interest rate.
@@Anniefawesome it was over 7 years. That is a 3-4 percent ANNUAL interest rate. They could have gotten a better return leaving their money in their retirement or investment accounts or where ever they pulled the money from to loan it to her. They didn't owe her any money. They did her favor. This entitlement that your parents owe you college money is wild to me.
The lack of understanding regarding IRS requirements and what interest rates look like over an extended period (not a single year) here are concerning.
What are the IRS requirements?
Yes, IRS will actually impute interest for a cash loan and impose taxes on that amount, whether the lender charged any interest or not.
This comment, 💯
@@cherrypieforbreakfast1499 wonder if the parents reported the loan to the IRS.
I don’t think the IRS would sniff out $3,000 of missed imputed interest over the course of 7 years
She's ungrateful. Her parents were teaching her lesson of life and money.
She might teach them a lesson later in life, when they will grow old and need help and she will charge them a "fair rate" of a few thousand dollars for adult daycare. ;) That's not a way to treat your family, unless you do not understand what the word means.
@@ΤάσοςΚαυσοκαλυβίτης
Really nothing wrong with using a “family” bank.
Rather pay and pass down wealth within family than outsource to strangers.
You just proved my point that there are no guarantees your kids will take care of you.
But if she does hold that grudge her kids are watching.
Family is fun.
@@ΤάσοςΚαυσοκαλυβίτηςmy thoughts exactly. At some point they will might need help.
@@blackworldtraveler3711 I come from a different culture and country. I still live in my family house (which I inherited) and took care of my father until he died and now I am taking care of my mother. At no point did my parents took out a calculator and went "well, son, you are costing us X amount of money, time to pay rent and utilities and whatnot".
When THEY grew old and needed me, I didn't take out a calculator and say "weeeell, I am here 24/7 providing expert care, time to pay me as a full time nurse, caretaker and more".
It is not such a novel idea that IF you treat people like family, THEN they will treat you like family too.
When you are a kid/teenager/young adult, you live with your parents.
When your parents grow old, they live with you.
You do not keep tabs.
That's the culture here and that's why we can actually have some generational wealth. I saw that video at Ramsey one day about some parents SELLING their house to their kids, forcing the kids to get a loan. What kind of nasty behaviour is that?
Of course those children would never even imagine taking care of those "parents".
@@blackworldtraveler3711 YT deleted my lengthier response. Anyway, the point is simple, if you treat your kids like family, they MIGHT take care of you. If you treat them like strangers once they are adults, then they will reciprocate that behaviour later. I saw a video on this channel about some parents that sold their family house to their kids, instead of inheriting it to them. Can you imagine getting a loan to buy your family house? That's not a good society for "generational wealth", by anyone's standards. Meanwhile the rich people keep giving stuff to their kids. Funny how if you are rich your parents don't need to "teach you a lesson about money" eh?
Why do people assume the parents have the money available to loan at zero interest. There's the possibility that they had to redraw from their own home loan in order to fund her college.
If the parents don't have the money, then don't give it to the child. What happened with parents giving money without expecting it back?
To me, it seems that these parents were too lazy to actually grow their children in great adults and now they don't have any trust in giving them money. You people are horrible parents.
Not 20%. The loan term was over college and then 3 years after. That's
Loaning your children money with interest is disguisting. The fact that someone would do that and then charge thier kids interest is rediculous. What horrible parrents. I would never loan my kid money, I'd gift it to them. They're my kid I literally made them and accept responsibility when I made them and to make a kid in mordern day and not pay for their college when you're more than capable of doing so is just unacceptable. It's your responsibility as a parent, everyone knows a kid can't survivie without a degree and to expect them to not only pay but pay YOU for it is just selfish.
Thank you for being the one person in the comments section that isn't dumb as hell.
If you had more than one child with different needs (e.g., one tuition, one needs a deposit for housing) and you only had 20k, would you still be fine gifting only one right away 15k?
I'd never loan my children college money. I'd rather die than do that. I pay, and that's it. She's right to feel like this.
.... Wow, your kids must be even more entitled and bigger brats than this woman.
I wouldn't loan my kids money, and I'm not paying for their college either. It's not my responsibility. She's not right to feel this way. They didn't have to loan her the money. They could have told her to figure it out. They didn't do that. THAT was nice. As a millennial, these Gen Z entitlement is wild to me. That your parents owe you money well into adulthood is nuts.
Agreed. My parents didn't have the money. We cleaned house, worked in the school kitchen etc etc. Very proud to make our own way.
I would have gladly taken loans from my parents at less than 3% interest. That is a hell of a lot cheaper than the 5%+ that I ended up taking because my parents weren't rolling in the dough. She has zero right to be mad that her parents aren't trillionaires and couldn't afford to pay for her college. That's just being entitled and spoiled.
No she absolutely is not. She agreed to it and paid. She’s being an entitled brat thinking her parents should just give her things.
I wouldn’t personally loan anyone money but they all agreed to it. You sound like you’re as entitled of a brat as she is
My parents did all types of things to teach me financial lessons. They had me pay interest on something (can't remember specifically what) and they basically put it back in a savings account for me later down the road. Which was even nicer, but they didn't have to do that.
You definitely have my sub. This content is next level. For me Unimantic was the turning point. Please keep doing what you do and keep being you, love it
They were right to advise that she's only upset because of the husband's comments. However, they handled the interest question ENTIRELY wrong. They failed to realize that $3k interest on a $15k loan over a seven year period is nowhere near 20%. And I do mean absolutely nowhere near that high a rate. Those parents gave their daughter a GREAT deal.
20% over 4 years with no payments until after graduation is like 3% APR. They didn't even charge market rate. You got a killer deal. My son had Stafford loans and took about the same at $15k and his balance at graduation was more like $25k. And Staffords charge a 1.04% front end load, which means the amount you're paying on is more than what the school was paid.
This is a call Dave should review. The interest rate issue is the main factor. Once she has clarity on that she will feel alot better.
😂 as a father I can’t comprehend charging my kids interest
Curious.... if your kids were adults and working, would you let them live at home for free to charge them rent?
@@GAFB1122 with all the tax experts in the comments, that could require taxes too, on the rent paid.
@@GAFB1122 neither
@@mxerb5912 Answer the question!
@@GAFB1122that’s not the same as charging your kid interest to go to university.
If i were the caller, i would've feel grateful about what my parents did to help me... had she took the loan via bank, she would've been charged way more than 3k interest...
She's an idiot. Her parents were helping her bypass the b.s. of a loan system and she's ungrateful. And, teaching the cost of borrowing money.
Nope, real parents give the kids money
@@johndone8045 or don't charge interest. Like certain religious groups do.
Well, you are very wrong kiddo
Actually, $3k on $15k is 20% interest. A quick Google search is showing private student loan rates ranging from around 6% - %17. Now, obviously, we don't know what this lady's credit score/borrowing power was OR what the rates were at the time she borrowed, but let's not pretend the parents did her a 'solid'.
I can’t imagine trying to turn a profit on money I gave my kid to go to school, but at least they were upfront about it.
I'm thinking instead of giving my daugther the money in her college fund to pay for school, I will loan it to her and make her pay interest on it! These parents are deadbeats
Maybe they need the interest. You don't know
@@georgewagner7787if they needed the interest they had no business lending it out in the first place.
I think what the parents did was completely reasonable. All the terms were put on the table. They did the daughter a huge favor. And taught her early on about how interest works..
Never loan money to family or friends. Ever. GIVE money with no expectation of ever seeing it again.
This gal knew up front there was interest. She signed up for it. Bad decision for parents to make the loan; bad decision for her to take it. This is why you NEVER loan money to family or friends. "The borrower is SLAVE to the lender." Don't turn your kids into slaves. Don't ask your parents to turn you into a slave. It's just.... not... worth it. Find another way!
Actually, it's the opposite. The lender is the slave to the borrower if there are no enforceable documents.
$15,000 is a lot to give with no expectation of ever seeing it again. 😂
you do realize that verse was written in a culture where all debts actually used slavery as collateral, a practice we don't permit anymore right?
so setting up a loan with someone does not actually turn them into your slave?
and you do know there are lots of verses God commends and expects his people loan and give generously, BOTH, not just one
@@thewheeldeal8439 Do you know that God is imaginary?
@@thewheeldeal8439 yep I'm a history major by training and an avid reader of the Bible and other ancient documents by hobby.
You expect to be paid back when you loan money, right? That takes time, effort, and the sweat of your brow (which I'm sure you realize). So while the word "slave" may not be used anymore... the result is only different in that someone owns a piece of your future, to be redeemed either when you pay it back with the fruits of your labor, or when a judge or court says you must and seizes your bank account, or when inability to pay forces you into bankruptcy, which will make things cost more for you in terms of inability to borrow money cheaply and/or security housing easily.... which costs you more time, effort, and sweat than it otherwise would have if you'd paid up front with resources you already had.
So... yeah, you win on the technical terms, but the overall premise stands. Borrowing money is a contract on your future earnings which may or may not materialize, and regardless of whether they do or don't, someone else has a legal foothold on your life. Slavery by another name, but slavery all the same.
P.S. "Loan" in the Hebrew is used in the same sense as give. Semantics. And I already addressed giving in my OP.
This sounds like parents teaching their kids the ways of the world (loans) in a safer environment.
Interest is a real thing! It lights a fire under your booty if you realize that the price is going UP the longer you pay. While it isn’t the “sweetest” thing, I can understand why you would do it.
Just like charging rent to a college kid living at home. “Practicing” before the stakes are too high.
She lost money. She would have a lot more money if she kept it and invested it and that’s all that matters. That’s why we make people get certified before teaching. Anyone that can read knows there is interest in bank loans.
That's only 20% interest if it was over one year, but it was over several years so the interest should be annualised over the amount of years, so it was a lot less than 20%
if they funded $5K/year for 3 years, and she paid back $6K/year for 3 years, the parents made a whopping 6.27% per year. She agreed to it up front, and for her husband to claim they took advantage is BS.
I can’t imagine charging my child interest. Especially if he/she was a responsible, good kid.
She agreed to the terms. Walk it off. Too late.
She agreed. Plain and simple.
Also 3k over 3 years is not bad, she’s just angry she wasn’t “given” the money. Hubby sure sounds like an entitled dude.
A proper response would have been “I can’t who’ve yiu parents lent you money” not “interest on lent money, what monsters!”
He’s probably thinking “that’s $18,000 that could’ve been put towards our kids’ education/future. Why would they charge her interest on something they had 2 decades to prepare for? Think about how much that $18,000 would be worth after all of the compounding by the time our kids are college age if I put that in a mutual fund.”
I’d never charge my kids interest.
Holy moly this caller needs to let it gooooo.
In my opinion, the parents should either give the child the money for college or none at all. Loaning the money doesnt sit well with me. I understand that it may be to teach some responsibility, but thats not the only way. If there's good values in the home then most likely the child will adopt thag, which is why she was able to pay it back as agreed upon.
If i were the parents in that situation, when she made the final payment i would return the full $18,000 to her. Thats a true lesson.
As long as my kid is a good person and treats me with decency and respect, I would not have charged interest and furthermore regarding the principal amount, the payback would be in grades. The more serious you take college and the better you do, then I'll forgive the amount. ALL THAT WOULD BE STATED UPFRONT!
I was mostly an A student in college peppered with a couple Bs and that is what I expect and demand from my kid. Do that and I'd forgive the principal amount. ---- See in my world, money is not without strings. I get paid but the string is, I must work.
If you were a good parent, you wouldn't ask for the money back at all.
@@davidlloyd1526 You raise your kids as you see fit and I will raise mine as I see fit. Do well, and all is forgiven. Goof off and do poorly and you will pay back every penny. See I am successful, and my kid will be successful.
@@davidlloyd1526 My kid will be successful. Yours not so much.
If you borrow $15,000 for three years at 6.25% per annum, and pay it back as a lump sum after three years, the amount owing is $17,991 (roughly 20% more than you borrowed). Not saying that is exactly what happened here, but it gives a sense of the _interest_ _rate_ rather than the _proportion_ of the repayment that is interest.
Parents shouldn't seek to profit off their kids.
If her parents are listening to this they would be very sad because daughter doubted their intentions and she was influenced by her husband 😮
I guess the caller would have preferred to get the loan via a bank and probably pay even more interest with no leniecy in the event of an emergency.
I don’t think a parent should charge interest in a way that “profits” them, but I’m fine with a little interest in a way that keeps up with inflation.
Either that or just gift the money, education should be covered by parents anyway.
My experience with 3 young adult children: When you just 'give them them money'--even if it is a loan-- they can see you as the lowest priority and will just pay it back when it's convenient. If I had to do it over, I'd create a signed agreement with a little interest and a late payment penalty so they'd be getting a deal, but would APPRECIATE it and not feel entitled.
Good way to ruin your relationship with your kids....... Your idea is awful.
Apparently that makes you an awful human, but I think it's smart. If you can't afford to give away the money, make it a formal loan.
She agreed to it. Live with the consequences
You guys need help in calculating interest rates. Loans are based from the day the money is issued, not from when they start to pay it back. If she took 5 years to pay it back, then it's NOT 20% interest but rather 4% interest. The parents took a chance on helping out to mitigate risk, which history shows us is huge with graduates NOT paying back loans. The parents are awesome !!
Wow, most ungrateful kid trying to change a deal she agreed to.
What nobody thinks about is the risk the parents take loaning her money, what if she doesn't pay back we don't know parents financial situation maybe they need the money but sacrificed to help daughter. My mom loaned me money with interest I will gladly pay her interest better than paying a bank plus mom will be lenient if I need more time. Nobody owes you anything you're an adult take responsibility if she didn't feel comfortable then go to a bank and get charged high interest
I think its completely insane that parent loan money to their kid to go to school, and add interest on top. I would be beyond embarassed not to gift that money to my kids. No wonder most end up in elderly care
I loaned a family member money and I charged them the interest I missed from keeping the money in my hysa. Nothing wrong with that...he knew my terms when he took the money....
If parents can afford to pay for their children's college they should do so freely. I have never heard of parents charging interest but every family is different, though 20% sounds high.
I think that it’s normal to feel bad or hurt that your parents put an interest on it, but i dont think it’s fair to say that she took advantage of her. She signed up for it.. it’s something that i wouldnt do to my future kids since my parents paid for my education, but i wont judge the parents. We dont know their financial situation
I would take this great deal 10 times out of 10. She clearly has no understanding this was a great deal for her. She did when she agreed to it which her intial reaction was correct.
And the fundamental Ramsey problem rears its head... because they prioritize the behavioral over the mathematical, the actual interest *rate* charged was never asked / clarified; Something that in this case seems necessary to determine if someone was taken advantage of.
Personally, have had some loans from family (business, house), and interest HAD to have been charged, or the IRS could come and impute the interest that SHOULD have been charged as income, and assess taxes, interest and penalties.
Depending on when that loan was taken out and for how long a duration it was for, could have absolutely been on the up-and-up and her parents protecting her, not taking advantage.
Typical boomer response. Mathematical obsession isn't the way to build it up.
If the daughter has brothers and sisters, and she was the only one who was given the option to borrow money from her parents without interest, while the other siblings had to take out loans with interest, it would be fair to charge the daughter interest on the loan. However, if she were the only daughter and I could afford it, I would not charge her any interest.
why do people sign for loans then cry they were taken advantage of? i don't get it.....
i think i'm to old..... that was never part of our character.
unless you a minor or have mental capacity disorders i have NO sympathy..... Adulting is hard.... you make choices, you deal with it....
I'm surprised so many people are against the parents charging interest period. I think it's a good thing. It helps teach the kid how loans work and how interest works without all the pressure of a bank institute if you mess something up. I would agree though it shouldn't be more than the going interest rates though. That just extortionate then
Because it cost her $18,000 plus growth. Anyone that can read knows there’s interest in bank loans.
@johnmartin4641 Sure people know about interest, but if you actually asked people if they know the difference between interest paid versus principal, you would get a lot more blank stares I would imagine. If nothing else, it's a teachable moment on how to understand amortization since that seems to be something most people don't understand, especially at the point of going into college (thanks public school system 😂)
(1) Her parents could have invested that money elsewhere to make it grow. She is very lucky they were willing to invest in her education instead!
(2) The money she spent on interest went back into her family’s estate. That’s a win-win no matter how much interest they charged her honestly!
- Someday that money could either help take care of her loved ones or else come back to her in the form of inheritance.
- She should be grateful rather than bitter!
This may have even been their way of making sure she had something saved for the future.
Missed opportunity to ask how much debt she and hubby has. I wager she was probably debt free and hubby brought a ton of student loan debt. She learned a valuable lesson with a safety net if things went wrong for her. On its face, im giing to say parents are not guilty.
wait til Dave hears Ken interrupting his daughter lol
Ken is sooo dramatic 😂
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She was an adult who agreed on the terms if she didn’t like those terms she could have went and simply got a regular student loan. Too many people today have to find something to be upset about. I don’t understand this.
I agree with the husband. I wouldn’t charge my kids interest. They can just pay me back the loan. How are they “helping” her if they’re giving her the same deal that you get from student loans? They didn’t really do her any favors. They acted just like a bank or student loan issuer. In fact, they basically USED her to make $3,000 dollars. She’s a young person getting on her feet and they made it even harder for her by taking money out of her pocket instead of just helping with a loan.
Based on the "ANNUAL" interest rate and the fact that she was not subject to other stringent loan terms from a bank, she most likely got a better deal than a bank.
People on here need to TRY and at least be factual. I may not have charged my kid interest either BUT I don't think the deal these parents gave her was bad as a bank.
The interest rate charged is definitely a factor.
The interest rate they charged was 5.321%. If the loan was for $15,000, the term was 7 years, and they charged her $1K per $5K borrowed, that's $3K in interest over 7 years. Her monthly payment would have been $214.28, and after 84 payments, she would have paid back $18K, a total of 5.321% APR.
Maybe if you had a better relationship w your parents you wouldnt mind giving them money so they could pay down debt or take a nice vacation. Unbelievable
What an absolute ungrateful person. They charged 20%interest FLAT not compounding which is better anyway. If she borrowed from the government it would have been more for sure. The fact that she thinks they took advantage of her..... unreal.... and just to back up what i am saying i just went to a website for college loan calculations. 15000 for 7 years(4 years in college and 3 after college to pay it) 3%interest rate which is insanely low. And 0 payments in school assuming she isn't working during school is $18896.64
Very poor response from the Ramsey side concerning the interest rate. I know they were moving right along but to say off the cuff that $1000 interest per $5000 was unreasonable didn’t show much financial acuity on their part. It would seem the interest was over a 7 year term. That’s like 3%. Hardly unreasonable.They need to have a mea culpa moment on the air apologizing to the parents and their viewers.
She needs to walk away from the $3000 she feels she lost out on. And she should be grateful they gave her a loan.
They charged 5.32% apr… stop it.
Student loans don't have interest until out of school, so really they charged about 7% "effective" interest. (Effective to her.) But her parents loaned over a longer term, so they earned less than 7% per year... They both would have probably been better off not doing this.
You accepted the loan lady and it worked out *well* for you and exposed you to lower risk than a bank loan - so what is the problem here? Your feelings should be gratitude that they had your back on this and were actually able to extend you this loan when it was needed for your college. My parents were unable to help with my college and I worked for it... be grateful and thank your husband for his opinion but it was a choice which *you* made and it worked out well.
She's way off on that interest. $1k on every $5k would only be 20% IF the loan was only for one year. I can't believe you didn't catch that.
Did her parents give her a lumpsum of $15k at the start of school? If they did, and if she went to school for four years, and then she paid it off over three years, that's a seven year loan. $3k on $15k over a seven period is a much lower rate.
I borrowed money from my dad to buy some land, I paid it back WITH interest, he didn't ask for it, but I think it was only fair.
It’s NOT 20% interest! If the loan term was 3 years, it’s about 12%. And if they loaned it to her at the start of college, it’s 5.5%. Had they invested the money over that 7 year period, they would have more than doubled their money in the market. I don’t see an issue here. We don’t know what kind of income her parents have, or what kind of retirement they’re looking at. They wanted to help her, and figured why should a bank get interest when they could, and if something goes wrong and she’s out of work, it doesn’t hurt her. Just move on.
Don't think they took advantage, but I I still think it was a crappy thing to do to charge her interest. No way would I charge any child of mine interest if I wanted to help them out
PLEASE , have her parents call my wife and I. We are retired in Canada and we need a 15,000 metal roof put on our house ,.....quite happy to pay $ 3,000. in interest over 3 years. LOL
Truthfully , these people are tight with money and rigid on every penny but they arn't like some irresponsibly parents that want the kids to support them in old age.This girl will get a BIG inheritance someday with interest.
It’s unconscionable for parents to charge their kids interest. She could’ve gotten a better rate at the bank. That’s just ridiculous.
If you want to make gifts instead, good on you. But absolutely charge your friends and kids interest, with a promissory note, if you lend money. If you have a surplus of money, other people will often ask to 'borrow', for things that you won't think are wise. If they have tapped out their other sources, then you're already doing a favor by lending to them at all. Give them a financial education, instead of coddling. Misplaced resentment from this caller. She would have taken out conventional loans and paid it back, had her parents not lent to her instead. Would she have resented the bank? Or is she just feeling resentment because she feels entitled to her parents' money?
That’s terrible altogether. You can loan and say pay back
Wow...just wow. So the assumption is that they owed her a no-interest loan? Someone is pretty entitled.
Go and thank your parents! Try getting that loan from the bank and look at the interest again!!!
I would never charge my children interest I would pay for the college fees in the first place
Nothing wrong charging interest. If they had let her borrow from a bank the husband will not say anything. That’s absolutely not absurd to lend the money and not a problem to charge a very small interest. It was clear and makes perfect sense
Yea if it was 1 year that’s 20% but 3 years that’s a low interest rate
The interest charged was about equivalent of what the parents could have earned in the stock market. Caller will likely inherit her families wealth. Quit whining.
Answer: Tell your parents how you feel. So that you can build your relationship with them. Hear them out. When our money is only currency and no longer has a fixed value. Deut. 23:19 was God's law when money was gold not dollars. Are you against the bank paying you interest on your savings?
I borrowed money from my parents for a car. I was grateful for it. And I paid interest. That was money that they would have earned interest. She sounds entitled.
No need to address the issue now, just dont borrow from family again.
They took advantage of her just like a bank would any 18 year old. They could've easily waived the interest after she paid the money back in full. It's not like she took forever to pay it back and costed them money in the process which would require the extra fee. She might as well have went through a bank because she'd most likely wouldn't have to pay it off in full 3 years after graduating. My parents bought me a $1k mac book for college and I paid them back $100 a month for ten months... didn't even charge me the taxes on it but it still taught me how to budget and pay bills monthly... ridiculous you would start your kids life out with them owing you over $5k a year with interest on top... Maybe as a graduation present, don't charge them the extra $3k.
Someone needs to understand the time value of money...
Was a fair rate and she knew about it going into it. They didn’t take advantage.
20% interest is not the same as 20% interest rate. This interest was charged all up front and never increased again it’s a much better deal than even a 4% loan and she feels like she got taken advantage of. 😂
My brother asked me to let his son borrow $20,000 for 24 months to help pay off his wife's expensive 10% interest student loans.
He knows I probably wouldn't expect interest and told his son at payment to give uncle a small present like a giftcards to a restaurant/somewhere as a thank you.
Later on, He called and asked to extend the timeframe for another 12 months.
Payment time -- no interest -- and no giftcard.
I don't need anything, and bank deposit rates was only 1% but was kinda shocking if I am honest.
That’s why I never loan money to anyone. If I do, it is a gift.
Interest is a normal thing to charge on a loan. She needs to be a grown up and realize loans have interest.
If she borrowed money from a bank, she would have paid interest. Her husband sounds like an instigator.
She sounds easily manipulated by her husband. Husband sounds like a trouble maker.
You should be thanking your parents for the valuable life lesson. Giving your kids this much money with no responsibility attached teaches them nothing.
Loans have interest, this is a fact. If it has no interest, it's not a loan. It's a gift with no incentive to return.
Taken advantage of. I was paying rent to my mom at 18 😂😂😂😂
My Dad wanted rent when I started working at 14. I told him I'd just quit. lol. Surprised in retrospect he didn't belt me one.
He muat not have a good relationship with his parents! So what if she gave them 3,000 they ckuld use that to pay down their own debt or go on a nice vacation! Treat your family well people ! You only get one
Did they borrow the money to loan her the money???
I would never charge my kids but I would never loan them money….
The parents lost potential interest by not having the money in a savings account or an investment. Get over yourself and be thankful for what you do have!
Life is about far more than money. Get over the money and invest in your children.
Dave gonna be busy reacting to all these.
Be Elsa, and Let It GO.
Actually, tell hubby to let it go too. Maybe he keeps adding fuel to the fire for her to hang onto this so long. If he is she needs to step up and tell him to stop bringing it up, that she will not discuss it anymore. It is done. Get on with life.
Typical victim mentality! They could have made much more on that money by investing it over that 7 year period. Instead they chose to invest in their child’s education and risk never getting it back. They also have been teaching her to be trustworthy and responsible for the commitments made.
Some parents have the means to give their children money and some don’t. It seems like they didn’t but were willing to risk a part of their retirement so their daughter could avoid higher interest student loans.
Also, she’s demonstrating a lack of gratitude for their sacrifice and willingness to support her. It’s like the old saying, “no good deed goes unpunished“.
Interest was 3k over 3 years. So that's 1k a year. So that is 6.6% only.
Ok i won't lend money to my kid and charge them interest in the future. I'm gonna tell them go get a loan from the bank, then pay their interest rate. If they f up cause they didn't pay on time or interest rate is too high, they wouldn't call Ramsey show and shame me for take advantage of them.