A financial choice made years ago by a family member can be interpreted as a generous favor, an obligation, or a complete surprise for a person who is now being asked to pay for it. That’s why conversations about college debt need more than good intentions. They require clear terms, consent, and an honest understanding of who is taking the risk.
An old family decision about money can become a present-day argument. A 37-year-old woman applied for college loans around 20 years ago. She understood she was borrowing money and paid the student loans she knew were hers. But what she didn’t know was that her father had also taken out a Parent PLUS loan. He never made payments on that particular debt, and interests kept accumulating until it grew to nearly $40,000. Now, he want her to pay for it.
She can’t add a payment of almost $400 a month to her existing responsibilities, so she refused to refinance the loan on her name. Her sister accused her of being selfish and insisted that she find a way to deal with it, but the truth is, she never signed for that loan. It was the dad’s financial decision and she was never aware of it. Why should she be responsible for that?
There are disagreements about what’s fair and what’s not fair within a family‘s decisions, but this is a conversation that never happened. I understand the topic might be uncomfortable to talk about, but it should have been addressed earlier. Her father signed for the loan, had years to address it, and never explained the arrangement to his daughter when it could have been discussed in a responsible way. Now, everyone feels cornered, the situation is still uncomfortable to talk about, AND there’s also a $40K debt.
Author: Kayitsi.com
