My question involves collection proceedings in the State of: North Carolina
My daughter's income is low and she can not afford her student loan payments. Can a portion of her student loans be transferred to us, the parents?
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My question involves collection proceedings in the State of: North Carolina
My daughter's income is low and she can not afford her student loan payments. Can a portion of her student loans be transferred to us, the parents?
These are loans that your daughter has already received? If you want to pay down your daughter's loans, how about simply making some of her loan payments on her behalf.
That could be an option but she doesn't want all the loans in her name for various reasons. The total student loans is $100,000. I was wanting to transfer $70,000 into my name so that they could be paid off quicker and she would be content with the remaining amount.
There isn't much you can do except maybe try to get a loan to pay off the amount you wish to be responsible for and then the loan would be in your name. Banks may not be too keen on that idea though.
I agree that your only choice is to use money that you either currently have or that you can get a loan for in your own name. Likely the interest rate will be higher (even if you pay it off faster) and you will now be on the hook and she will be off the hook. Generally student loans do have a lower longer term interest rate and many employers at least will understand student loan debt, although they won't base her pay on what she needs to pay down that debt. I don't suggest using home equity (puts your home at risk) or retirement funds to get the loan (due to taxable consequences and lack of growth on your own money)
As a Parent, I would ask who got her into this debt? Did she do her due diligence when she took the loans? Maybe make a deal with her to match any payments that she makes herself. I am not understanding your reasoning on taking on 70% of her debt just because your daughter "would be content" with a lower balance and doesn't want them in her name (who wouldn't want to get rid of 70% of their debt?). Sounds like she doesn't want to make the payments or can't make them with her other living expenses (understandable if her other expenses are reasonable). I have three kids- two who just graduated college in May 17 and there is no way I would take on $70k of their debt.