My Parents Charged Me Interest on a Loan

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[@edhcb9359]

Good thing she paid up so the parents didn’t have to break her knee-caps! 😂

[@shameekasimon]

😅😅😂

[@khashiffnurse4341]

🤣🤣

[@chaddaniel254]

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.

[@funtechu]

Exactly! The parents were quite reasonable.

[@jimmymcgill6778]

It was 3 years.

[@TMHF]

@@jimmymcgill6778 They loaned her money for 7 years total, and she was expected to pay it off in 3.

[@LancoAmish]

⁠

[@predatorprey2]

@@chaddaniel254 exactly! Couldn’t even get a mortgage at 3% then much less an unsecured loan.

[@Pcsadams]

The parents charged her interest because they withdrew the money from investment accounts thus losing the growth over the period of time of the loan. Also, had she borrowed the money the through conventional student loans her interest would have been much higher. She is very ungrateful.

[@barbaradann1446]

I agree. if the loan was 20% for one year it would be high. but this loan most likely lasted several years so not so high then. Parents did her a favor.

[@expensivefreedom]

I literally came here to say this! It sounds like they essentially took money they would’ve had invested in bonds and invested it in their daughter’s private bond offering instead. As long as the interest rates were fair (sounds like they were), this is actually quite generous of the parents. Granted, it’s less generous than just paying for her college themselves, but not everyone has that option.

[@aprilstiek7430]

I disagree. No way borrowing money through a student loan would have been higher than 20%. This occurred several years ago when interest rates were even lower and the stock market sucked. It also could have been deferred until after graduation just like her parent’s loan was set up. I don’t think she’s ungrateful. I think she’s hurt that her parents made money off her.

[@expensivefreedom]

@@aprilstiek7430 the caller said it was $3k interest on a $15k loan payable over 3 years. That means 20% total interest, but more like 7% annual interest; which is solid for a personal loan. Factor in that freshman tuition would’ve been a 7 year loan rather than 3, and it’s roughly a market rate loan with less risk on her part. They did her a favor with the deal, but not a huge favor.

[@aprilstiek7430]

@@expensivefreedom I was assuming she borrowed this money near the end of her education because it seems unreasonable to pay for 4+ years ahead of time when people can pay by semester. I absolutely see your point that if you break it down over many years that the interest isn’t extravagant. We would need many more details to know for sure. However, I do think she could have saved some money taking the student loan. It feels like the parents didn’t believe she could pay it back so they were trying to help her in that way. I feel really sorry for her because I don’t think she will ever shake the feeling that they used her.

[@theburnetts]

We borrowed money from my in-laws twice. Both times my father-in-law charged us a low interest rate and actually had us sign a note and gave us a repayment schedule that he had printed out. I really appreciated the way it was handled. I knew this was serious and I treated it just like I would treat a loan from a bank. I knew I was expected to pay it back on time and we always did that. Because he approached it professionally we never took advantage of the fact that he was family and we made sure we were on time every month until it was all paid back.

[@penelope5500]

That's exactly how my father used to do when we were young & wanted to borrow money. He wanted us to learn how the world worked. If more people learned this when they were young they might not have so many money problems going forward.

[@onionpeeler2023]

@theburnetts I find it interesting how some people appreciate it while others don't. I lent my parents 80K for one year so that they could close on their new construction house, and charged them 1% interest to qualify this as a loan for IRS purposes. They paid it back to me 6 months late because the builder had delays (it was happening during the wood shortage in the country). Because of this I missed out on an opportunity to buy a condo, which then rose in price by 60% and caused it to become out of reach for me. I am still hurting because of it, but I am happy that my parents got what they wanted. Btw, they didn't like that I put a loan agreement / note for this, and felt that I didn't trust them.

[@theburnetts]

@@onionpeeler2023 Yep. Every family is different and people can all have different expectations. Lending and borrowing money within a family is definitely tricky and not for everyone.

[@thatbemefool]

@@onionpeeler2023- OMG! $80K? I would feel incompetent if someone asked me for $800 (parents included). Lesson: DO NOT assist someone with something you don’t have yourself.

[@sfappetrupavelandrei]

Damn, you Americans are crazy. Ask interest to your own child? 😅😅😅

[@rhondavigil795]

Gratitude is lacking. She doesn't even understand how ungrateful she is.

[@curiouscat3384]

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.

[@rhondavigil795]

@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.

[@curiouscat3384]

@@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

[@macoeur1122]

@@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.

[@curiouscat3384]

@@macoeur1122 well said! :)

[@predatorprey2]

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.

[@tkdevlop]

how you know it's one time?

[@predatorprey2]

@@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.

[@Mr.Boring_Man]

Exactly!

[@christophercarrigg3775]

​@@tkdevlopDid you not understand the video?

[@ericeandco]

It’s not 20%. It’s more like 3-4% annually.

[@odysseyscots1]

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.

[@judyczyz1297]

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.

[@japhethwillmore725]

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

[@RasimH1982]

Ken had 3 Starbucks Coffees before this call he is in 10th Gear

[@curiouscat3384]

too much

[@carolr7823]

She got a good deal. My parents gave me a gift when I graduated from college. An interest free loan for my first car, which I made $150 payments per month until it was paid off. The loan was for $7000. I thought it was great and very fair. She got a super low loan rate on an unsecured loan. Her husband sounds like a jerk.

[@sspann]

Lmao, I wouldn't call him a jerk. He just has different ideas about how to lend money to family. So does DR, who would've never "lent" the money in the first place. We all have different opinions, and it's really on her to squash her doubt, acknowledge she made a choice, and move on. I'm sure they can/will do things differently with their kids, and that's one of the best pts about growing up.

[@XFizzlepop-Berrytwist]

@@sspann I agree. Like I dont think interest should be tied to a family loan, or if it is, as low as possible in case any legalities come of it, like 1%. Of course it also depends on how close you are with your family I suppose, as dynamics can play a role.

[@Bruin2002]

Her husband IS a jerk. Not for the opinion, but for potentially permanently ruin the relationship between his wife and her parents, over something debatable at most, OVER FOUR YEARS! I think the deal is fair at least, considering the interest rate today and they are tight financially. I will never charge my kids interest personally, but I consider myself well off financially.

[@johnmartin4641]

He’s not a jerk. That’s $18,000 they could have put towards their kids’ education/future. He’s probably thinking “why would they want to profit off of their own child over something they had 2 decades to line up, get promotions and raises, invest, etc when my wife obviously didn’t have the ability to do that?” Think about all of that compound growth that could have been earned had that money been invested in a mutual fund by the time their kids are in college.

[@lukerider479]

@@Bruin2002so you won’t charge your kids interest and if someone else agrees with that they are a jerk? He thinks parents shouldn’t profit off their kids and he is a jerk? He married into that loan and it is very much his right to feel a way about it.

[@Andrew-ze5yo]

It’s none of your husbands business. You paid it off a year before you married him.

[@abbyc.4215]

He likely had to fork over more money towards the wedding expenses due to her having to pay her parent's back.

[@PatrickDKing]

Actually it is his business because they are a married couple, and since this show focuses on the Bible, the husband has more rights and a God sanctioned connection with his wife than the wife now has with her parents.

[@sfappetrupavelandrei]

@PatrickDKing Stop talking about the Bible. I mean, Christ says that if someone takes your coat, give him also your cloke. But these people borrow their children with interest. This is the level we are at. So what are you talking about?

[@Andrew-ze5yo]

@@PatrickDKing you are right, he does have a right to know. However, you are wrong on both other counts; the show is not based on the Bible, it is a financial show that uses biblical principles for prosperity, and secondly he has no say it what took place a year before they were married unless it took place while the couple was together and she was stressed at that time. We obviously don’t know the exact details of the story based on a short phone call to a radio show.

[@johnbrown6044]

Her parents probably had that money invested and were earning interest. It seems fair that she compensate them for their loss of income

[@pep590]

Her parents still acted inappropriate with the interest.

[@shameekasimon]

She's ungrateful. Her parents were teaching her lesson of life and money.

[@ΤάσοςΚαυσοκαλυβίτης]

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.

[@blackworldtraveler3711]

@@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.

[@karenzielke9387]

@@ΤάσοςΚαυσοκαλυβίτηςmy thoughts exactly. At some point they will might need help.

[@ΤάσοςΚαυσοκαλυβίτης]

​@@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".

[@ΤάσοςΚαυσοκαλυβίτης]

@@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?

[@denz4133]

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.

[@carnivoreRon]

I think the parents were trying to instill a sense of responsibility in her.

[@johnmartin4641]

Who cares? It cost her money and that’s all that matters. No stock exchange, mutual fund, business, store, dealership, property owner, etc care about that because it adds no value to their bottom line. They only care about “how much money are you going to pay me?” If you walk into a store and take $18,000 worth of merchandise to a checkout line and you say “I don’t have $18,000, but I’m responsible” they’ll laugh in your face and refuse to give you the merchandise because it adds no value to their bottom line. But if you pay them $18,000; they’ll give it to you because that does add value to their bottom line. If you open an investment account and you’re responsible, but don’t have any money to put in it, you will make nothing in returns. If you put $18,000 into it, you will make a good amount in returns. Why? Because no one cares how you got the money. It doesn’t matter. The only thing people will every care about is if you have the money. Some of the most successful people I know are some of the most “irresponsible” people I know. Study after study shows that those who have their college paid for end up making more money than those who don’t. And that’s the entire reason we send our kids to college: to make more money. To encourage them to go and then decrease their earning potential defeats the entire purpose. This isn’t my opinion. It’s proven fact. I proved it myself with an excel spreadsheet that shows you make a lot more money if you start off with an $18,000 investment in a mutual fund than starting off with $18,000 in loan and interest payments with $0.00 invested and studies show the more parents spend on their children, the more likely that child is to succeed. Wealthy parents spend more on their children than parents who aren’t wealthy and the children of wealthy parents are 8 times more likely themselves to be wealthy than the children of parents who aren’t wealthy. I used spreadsheets throughout my career and it’s sad that I actually had to make one to prove that starting your career with $18,000 invested is better than $18,000 owed in debt. It shouldn’t take a finance professional like myself to figure that out for other people. My classmates who paid their own way are still working and complaining about every expense while I’ve been retired for years with no stress.

[@pep590]

No, I bet they were only looking out for themselves.

[@zachblackburn5149]

I’m sorry, but I think it’s completely tacky to charge interest to your kids. Either gift them the money or don’t. That’s a good way to ruin a good relationship.

[@georgewagner7787]

It may be, but it also teaches them reality

[@pep590]

@@georgewagner7787 It more than not, it teaches resentment.

[@Ria24Ria]

@@pep590I agree it only teaches resentment!

[@eeebee6166]

Ok, but the call is her whining after the fact when they gave her a deal. What’s tacky is agreeing to something and then whining about having to stick to the agreement like a child

[@mdwilliams79]

My dad is like that. Won’t ask him for anything.

[@krobdawg]

That's usually how loans work 😂

[@frankcb11]

Parents are different. This sucks

[@TMHF]

@@frankcb11 There are literal IRS requirements involved with loans of this size amongst family. The parents gave their daughter access to a loan with an exceedingly reasonable interest rate. They did nothing wrong aside from raise a daughter who decided to let her uneducated husband attempt to create a rift in their relationship.

[@frankcb11]

@@TMHFalright

[@frankcb11]

@@TMHFalright it’s not as though the parents can’t be added as a sponsor to her college account and still help her that way. Which is handled differently than loan of this amount. I agree that maybe she should let this go. And the loan was to help her the interest is the thing I am just not a fan that’s all. Not saying she shouldn’t repay her loan

[@kdc3065]

​​@@TMHFNo it's just a cultural difference. In my some families, parents pay for their kids' college. I think most families at least help a little, whether with tuition costs or room and board or whatever. Anyway every family is different. One side of my family is always 10 min early to everything, the other is always 30 min late. They used to be mortally offended by each other. It's normal to have some culture shock when families merge.

[@bravotrades5614]

If the parents kept that money invested in SP500 over that time it would have been Worth $33,000... So her parents missed out on $15,000 to give her that loan... They could have stiffed her and she'd still be making minimum payments at 8% interest with a $17k balance.

[@Sarah-psalm127]

My student loans cost more then double what I took out in the end. It's disgusting. Wish I'd made better choices.

[@sfappetrupavelandrei]

In this case, why don't you think about how much money the parents would have saved if they never had children? Or maybe nobody should have children and we should go extinct if we care so much about money.

[@bravotrades5614]

@sfappetrupavelandrei Or... It's perspective to help her understand that she wasn't ripped off at all. It was a much worse deal for the parents in every way, and the daughter ended up better off with no debt. They gave her a 2.5% interest loan for 7 years with zero risk...

[@georgewagner7787]

​@@sfappetrupavelandrei maybe they needed it, we can't know

[@christophercarrigg3775]

The fact that all three of them dont understand interest rates is baffling

[@NWI_Steel]

"20%" 😂

[@Playingwithproxies]

“20% interest” not a 20% interest rate

[@mogamethanu]

Yeah, if Dave was here I’d like to believe he would have done the math for the rate… I think these ppl need to learn basic math/critical reasoning skills before answering these questions. Otherwise, they’re just giving advice based on feelings and not facts

[@georgewagner7787]

All four of them

[@nailatiylluf]

It’s almost as if all the hosts besides Dave have no experience in personal finance…oh wait.

[@Mr.Boring_Man]

She is NOT a victim! Permanent Victim Mindset! They've been making bad financial decisions and these grownups aren't taking accountability.

[@Anniefawesome]

I think her parents charged 16% interest which is high..... a bank would have been 6%.

[@FaithandPurpose828]

@@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.

[@pauljensen4773]

@@Anniefawesome 20% over a 3-year (plus time in school 4 yrs.) loan is not high. That sounds like 3-4% annually.

[@macoeur1122]

@@Anniefawesome Wrong. She paid the loan back 6-7 years after borrowing it....That's somewhere between a 2 and 3% interest rate.

[@jgray690]

@@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.

[@therealmvp232]

I will never understand American culture in loaning their own kids money. Shouldn’t you just give to your kids if they need it. Whatever I give my kids, I don’t expect a payback

[@alanj9978]

Not everyone can afford to give away $15,000. They probably need it to retire.

[@suen5006]

I wouldn't charge my kids interest. In fact, I would forgive it over time if I could. So yeah, she accepted it but I'm not liking that they charged her interest.

[@jgray690]

no way. I'm not gifting that kind money to my grown kid. EVER. Actually Dave rule is you don't loan money to family. So they shouldn't have given her to money at all. Let her figure it out. But they did her a favor and now she is acting like they owed it to her when they really don't. The entitlement in the Gen Z generation is wild to me.

[@bravotrades5614]

Let me guess..... The parents also spent wayyyy more than $3k for the wedding?

[@AlanHMartin]

_These_ parents may well have charged the interest merely because they were skinflints, and/_or_ as a life lesson. And it's regrettable that the caller wasn't really asked how well her parents could really _afford_ to loan the money (with or without interest). It should come as no surprise to Ramsey listeners that there are adults out there living hand-to-mouth, with only 3-4 figures in the bank to their name. But there _are_ scads of parents who would have thrown the interest into a virtual "wedding gift" account.

[@mistiinseattle]

She borrowed it knowing the deal, then thinks they took advantage of her because they expected her to honor her agreement. And they are calculating the interest wrong. it was a *total* of 20% over probably 7 years. you borrow from a bank and don't pay anything for 7 years and it will total FAR more than $3k. And sad that her husband is driving a wedge between her and her parents.

[@curiouscat3384]

Nooooo- she was perfectly happy with the arrangement. Her HUSBAND is the one with the problem and she smartly called in to evaluate who's right or wrong.

[@matthewclina4162]

They didn’t charge her 20% per year. She borrowed the money at the start of college, presumably, and it was due three years after graduation. Not knowing exactly when during her college she borrowed the money, but it would have been anywhere from 4-7 years total term. The interest rate was not outrageous. We also don’t know the parent’s financial situation. I wouldn’t loan money to family, but she did take the loan willingly.

[@HospitalLocksmith]

Yes so 3k or 18k total is 16.66%, if you assume 4 years of college, so 7 year term, is about 4.5% per year

[@Playingwithproxies]

@@HospitalLocksmithnot even that high actually 1.0265^7 is 1.2 so it’s about 2.65% compounded a bit higher if you consider it was being paid back over the last 3 years

[@pep590]

ANY interest IS A PROBLEM to your child.

[@HospitalLocksmith]

@@pep590 so you believe they would just ‘understand’ life as an adult?

[@pep590]

@@HospitalLocksmith All that daughter understood is that her parents are Not like most. Everyone learns about interest on loans the normal way. Charging Interest is like charging your daughter for dinner if she stops by while you are eating and she sits down to join you. The daughter paying back the loan is all fine and perfect. The charged interest makes the daughter feel like the parents think of her like a stranger, because it is Not the norm. Don't know how much clearer I can write it.

[@maryangelica5319]

I'm curious how many people here in favor of charging interest to their own children are also religious... Both old testament and subsequent Christian teaching condemn charging interest, particularly to your own kin. The husband was right.

[@FutureDeadGuy007]

100% agree.

[@michaelmadsen1222]

Is it a parents responsibility to loan their kids free money for 7 years? I'm more worried that she feels entitled to a free loan just because she is their daughter.

[@thejakelegion]

The Bible is clear: "it's immoral for believers charge interest to other believers." Kinda includes family.

[@semosancus5506]

They didn't handle this call well. She was not ripped off.

[@rleonekc07]

Agreed. This to me was her parents teaching her stuff costs money

[@nectarlifefitness7551]

Lmao this was a LONG winded “no”

[@constantinethesecond949]

​@@rleonekc07they could have taught financial skills with an interest rate and a high one at that. These parents are lizards.

[@The_Food_Police]

I don't think she was ripped off. However I do have major side-eye for any parent that loans to their child _With Interest_

[@random-nz7dy]

Not sure what you mean. They agreed with exactly what you are saying. I would have made it shorter and called her out on her bullshit but they e made the same point you did

[@5trace]

I would never charge my child interest.

[@Guitarlvr01]

Just don’t loan money period.

[@pep590]

Most loving parents WOULDN'T!

[@macoeur1122]

@@pep590 Nothing is this black & white.

[@TMHF]

The lack of understanding regarding IRS requirements and what interest rates look like over an extended period (not a single year) here are concerning.

[@maiaheiss2991]

What are the IRS requirements?

[@cherrypieforbreakfast1499]

Yes, IRS will actually impute interest for a cash loan and impose taxes on that amount, whether the lender charged any interest or not.

[@animosity8774]

This comment, 💯

[@maiaheiss2991]

@@cherrypieforbreakfast1499 wonder if the parents reported the loan to the IRS.

[@Triquetra15]

I don’t think the IRS would sniff out $3,000 of missed imputed interest over the course of 7 years

[@Tj-fz3pp]

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.

[@PatrickDKing]

Thank you for being the one person in the comments section that isn't dumb as hell.

[@barbthegreat586]

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?

[@xsgtxbigboy1655]

“They charged me 1k for every 5k” no you took 6 years to pay them back what did you expect

[@Lon1001]

Most people's mortgage lenders charge them $2-$3 for every dollar they lent, and mortgages are the cheapest loans anyone can get.

[@kamarwashington]

Honestly, I wouldn’t charge my kids interest. Just pay me back numerically and I’ll eat the difference. I wouldn’t “loan” my kid money either, but if I had to there wouldn’t be interest involved. Either way, the terms of the parents loan were likely better than student loans.

[@rebeccapiamonte]

The Bible forbade the Israelites from charging family interest.

[@kamarwashington]

@@rebeccapiamonte That is where I get my convictions as well.

[@bnations2000]

"Just pay me back numerically" sure sounds like a loan to me.

[@kamarwashington]

@@bnations2000 That’s in reference to there being no interest *should* I be loaning my kid money. I wouldn’t loan my kid money.

[@timothybrown5537]

My father charged me the interest the money would have made in a CD. I got a beautiful car and we were both happy . ungrateful brat .

[@ThatEEguy2818]

It's not clear if she took the whole 15k at the start of her college years or it was spread out. Either way, the interest she was charged was probably far lower than what her parents could've made on that money over those years. Her parents gave up thousands in interest just to protect her from the student loan monster... and now she's ungrateful.

[@genxx2724]

Her parents gave up more than interest. Her parents gave up the opportunity to invest this in an S&P 500 fund and make 10% per year on average.

[@TravelBySea]

It's *not* 20%. The wonder of compound interest works in both directions 😉

[@izzeww8487]

She got a fabulous loan for under 3% interest. They kept it short and clean. I don't see the problem. She can recognize that relationally loaning money to friends & family is a bad idea, but she can't then apply that new-found moral stance at the past and be resentful against her parents for something she agreed to. The girl doesn't even understand interest and resents her parents because of it. That's just very stupid. Her parents did her something ranging from neutral action to a pretty big favor. If she had a conventional loan her paid interest would have been more than twice as high and she would've had to deal with bank hassle.

[@loriurias110]

My mom would loan money with interest. Lower interest but fare from her standpoint. She also gave pre-inheritance. One was a lesson, the other was her choice. Her lessons were based on where we were, how we handled money, and ultimately for our benefit. Lots of pre lessons on how to handle money. Frugal, sales, coupons, negotiating deals. Dad had me pay the bills. Here's the checkbook. Here's the bank statement. Here's the refrigerator (meal planning and grocery shopping at 16) Due dates, balances, budgeting. Omitting items from the cart. Fixing broken items, recycle, reuse, repurpose. SAVE and pay cash for something special. Wait for sales. Etc... Good lessons learned while still in the nest.

[@leighbridges635]

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.

[@sfappetrupavelandrei]

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.

[@robyncarter5173]

Not 20%. The loan term was over college and then 3 years after. That's

[@hoteleandoconlafamilia]

I have two kids in college and we are paying for their college education. I would never charge them or tell them to pay me back plus interests. My children are more important than money.

[@georgewagner7787]

But parents don't owe adult children anything

[@ganymedehedgehog371]

@@georgewagner7787so elderly former parents can live the end of their lives alone because the kids don’t owe them anything.

[@FutureDeadGuy007]

@@georgewagner7787 What a disgusting attitude.

[@Joenzinator]

@@georgewagner7787It’s not about owing your kids. A parent’s responsibility is to set up their children to have a successful life. Different parents can have different ideas of what this means, but you don’t stop being a parent when your child turns 18.

[@luckypennybenny]

No interest in loans to kids y'all. Dave says it best anyways. Give it away. Don't loan it. If the parents were in a position to loan 15k they were in a position to lose 15k and be fine. It is wrong to charge your kids interest. I am so bummed Dave with grown children didn't take this one. This doesn't feel like it aligns with core values at all.

[@VanessaLiviu]

I think to bring this up now with your parents is going to create extra tension between your parents and your husband, and perhaps yourself! You were happy with the terms of the loan until your husband said something after the fact! But as papa Dave would say it: "Family members should not borrow from other family members because Thanksgiving dinner tastes different!"

[@ScurvyRascal]

Or just a 3k contribution.

[@sharonb519]

She’s a follower not a leader…. Very easily influenced. She was perfectly fine with the deal until hubby opened his trap. He sounds like a shit stirrer.

[@tate6809]

Nailed it.

[@Ka_Gg]

"shit stirrer" or maybe she just internalizes every minor comment and let's it build in her head. She said he made that comment several years ago. She didn't say he talks about it all the time. It could have been anything from "your parents are terrible ppl" to "eh, I wouldn't charge my kids interest".

[@mdaniels6311]

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.

[@runningdebate2670]

.... Wow, your kids must be even more entitled and bigger brats than this woman.

[@jgray690]

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.

[@georgewagner7787]

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.

[@kristinewberg7656]

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.

[@eeebee6166]

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

[@Soul_of_Radiance]

It’s fucked up to charge your kids interest. Not something I would ever do.

[@sitcomchristian6886]

You're also a spirit worshipper, so I'll pass on your advice 😂😇

[@Soul_of_Radiance]

@@sitcomchristian6886 it wasn’t my advise to you. No one cares what you do trust me.

[@JoelJerin]

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

[@debbieholoquist2059]

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.

[@julielewis1994]

Let Rachel get a word in. He cuts her off everytime she goes to speak!

[@mxerb5912]

😂 as a father I can’t comprehend charging my kids interest

[@GAFB1122]

Curious.... if your kids were adults and working, would you let them live at home for free to charge them rent?

[@greggpurviance7252]

@@GAFB1122 with all the tax experts in the comments, that could require taxes too, on the rent paid.

[@mxerb5912]

@@GAFB1122 neither

[@sitcomchristian6886]

@@mxerb5912 Answer the question!

[@ganymedehedgehog371]

@@GAFB1122that’s not the same as charging your kid interest to go to university.

[@JxBx80]

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.

[@yeahnawnaw]

ok in college for 4 years and 3 years AFTER college to pay it off. 7 total years. Ultimately it was about 4.5% interest in reality, not 20% lol. Seems perfectly reasonable in my eyes.

[@jimmymcgill6778]

She never said she went for 4 years.

[@trvpboifetti5006]

College loans don’t start charging interest rates til after so over 3years that’s over 6% and 7 years ago when rates were 1% that’s wild

[@jasonbailey6664]

@@trvpboifetti5006 Yeah, the caller got a raw deal. Interest rates at that time were less than 5%. The caller paid 14.29%.

[@PatrickDKing]

You also forget that while in school and during times of hardship the government subsidizes the interest making it a 0% loan, the kid got screwed.

[@FrankBenjamin-l3b]

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[@melindapawst17172]

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[@sergiorom33]

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[@chinyerejoseph8004]

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[@chinyerejoseph8004]

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[@4lovehenry]

Hello, how do you make such amount? I'm a born christian but sometimes I feel so down 🤦 of myself because of low finance but I still believe in God.

[@tdgdbs1]

That is only 3% interest for a personal loan; it is a great deal!

[@momof2momof2]

Sounds like it was all on the up and up right from the start. The her husband, who has absolutely nothing to do with this, gives his opinion so now she wants to back out on the completed deal. smh She needs to grow up.

[@derrekm1317]

*Amazing video, you work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K into trading from just few months ago and now they are multimillionaires*

[@mildredowens4390]

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[@BiancaSaunders..]

Hello how do you make such monthly?? I'm a born Christian and sometimes I feel so down 🤦‍♀️of myself because of low finance but I still believe in God

[@KimCastro-qu2vm]

My advise to anyone holding cryptocurrency right now is to invest it and earn upto 70 times of the initial capitals. Holding cryptocurrency will make it reduce because once the price goes down it will definitely go down as well but when you invest it, you won’t have to worry about anything

[@Carsonmaki]

Yes I agree with you on that. I was once a holder with about 3BTC, 7ETH and $8000 worth of lite coin but now after investing I have about 17BTC and 21 ETH.

[@RobertHohn]

Yeah, 253k from Andrew Louis Stella, looking up to acquire a new House, blessings.

[@TheJonOrtiz]

She needs to be more grateful

[@tduck828]

This is the problem when people borrow money. They don't understand how it works. Interest is charged...You had your hand out for the money. You should have had a written agreement. They DID NOT take advantage of you. Get over it and move on. They were nice to loan you the money for a low amount. Way lower than anywhere else...

[@financialfreedom1991]

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...

[@JustinCase780]

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.

[@johndone8045]

Nope, real parents give the kids money

[@FutureDeadGuy007]

@@johndone8045 or don't charge interest. Like certain religious groups do.

[@parker1981xxx]

Well, you are very wrong kiddo

[@sspann]

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'.

[@warrensloan3467]

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.

[@b-rad-3849]

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

[@georgewagner7787]

Maybe they need the interest. You don't know

[@ganymedehedgehog371]

@@georgewagner7787if they needed the interest they had no business lending it out in the first place.

[@Guitarlvr01]

Problem is they can charge 50% interest if they want, it’s THEIR money. 💰 She didn’t have to agree to it. 😅Hubby doesn’t want to see his wife’s role in any of it. To the caller… look friend, my parents didn’t even have 15k to loan me. They didn’t have $15 to feed me. I had to go into the military to earn my education despite zero interest in the military. I didn’t want the debt. Just be grateful they gave you a way.

[@davidbrayshaw3529]

I loaned my son money, and I charged him interest. I explained to him that I was forfeiting interest that I would otherwise earn and that he had to cough up for it if he was going to borrow cash from me. No problems. He got a "cheap" loan, and I didn't lose out on returns.

[@jacobawojtowicz]

Do you think this helped him "step on the gas" so to speak? The caller essentially paid off her student loans in 3 years, which is pretty uncommon. And I assume this arrangement, while I did think was very strange at first, may have motivated her more than deferred payments and empty promises of forgiveness and blahblahblah that is the norm

[@sfappetrupavelandrei]

Wow. With parents like that, who needs enemies? 😢

[@davidbrayshaw3529]

@@jacobawojtowicz Firstly, it was a first hand lesson in how interest works, especially compounding interest. Secondly, it taught him that finance costs and it taught him at the same time that savings earn. Interest rates were also at rock bottom when I lent him the money. He was paying me 2.0% above the cash rate on a variable basis. It was a practical demonstration that the sooner you clear the principal, the less interest you have to pay. I also included in the contract that he was to take on no other form of credit while he had a contract with me. While he was contracted to pay "X" per month, I firmly stated that I expected him to clear the debt as fast as was reasonably possible for his own sake. He most certainly did that. He lived like a pauper for 6 1/2 years while he cleared the debt. He didn't even own a car for 5 years of that. He cut his lunch for work and managed his finances to the cent. He's now 26 and has a small mortgage on a quite comfortable apartment in a nice suburb as a consequence of his endeavours. He still doesn't have any other credit aside from his mortgage and he still lives within his means. He recently credited us with the opportunity and the lessons that we gave him. For that acknowledgement, we're going to give him our old Honda Civic when his Mum gets her new car. He still doesn't own a car (or have a car loan!). Hopefully that answers your question, Jacob. It should also answer sfappetrupavelandrei's question, too. "Who needs parents like that"!!!

[@arh1234]

Nice! That seems fair, and it decreases resentment if the child takes a bit longer to pay it off

[@davidbrayshaw3529]

@@jacobawojtowicz My first reply got deleted, for some reason. There were a few considerations when giving him the loan. Firstly, it was collateralised. Secondly, it had to teach him a bit about finance. Thirdly, he had to benefit from the loan, not dig himself a hole. There were a number of conditions imposed. Yes, I really do think that it helped him "step on the gas". He kept a book on his own progress and could see with his own two eyes that compounding interest works in both directions. He cleared his debt in record time, figuratively speaking, and has put himself in a very comfortable position financially, for his age. And aside from his current "smallish" mortgage, he's avoided other debt like the plague. He has done himself well. I'm proud of him.

[@sugarfreegum123]

Very icky to charge your child interest. She agreed to this while she was a teenager and just implicitly believed from her parents that this was the best route. I would have guessed the parents were tight with money.

[@eeebee6166]

I was a teenager when the government put automatic weapons and grenades in my hands. Stop infantilizing adults

[@autumnjerene]

It's an icky situation. The most important thing going forward is discussing with her husband whether or not they would do the same with their kids. The husband is right to say how he felt about the situation. She shouldn't think that this is normal and one day want to do the same with their kids.

[@thorzz2803]

There may be more than meets the eye, maybe them as a couple are really tight on their budget right now and so the husband is making a fuss over her past decision. One additional point though, there is no use crying over spilt milk, get it on, make more money, forget it all. They're still young. The parents didn't scam her.

[@sidwhiting665]

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!

[@FutureDeadGuy007]

Actually, it's the opposite. The lender is the slave to the borrower if there are no enforceable documents.

[@BREEZYM6015]

$15,000 is a lot to give with no expectation of ever seeing it again. 😂

[@thewheeldeal8439]

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

[@davidlloyd1526]

@@thewheeldeal8439 Do you know that God is imaginary?

[@sidwhiting665]

@@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.

[@iii9266]

It was SIMPLE interest, not COMPOUNDED interest. What would the total have been had she got a student loan from a financial institution over the same time frame? I'd wager it would have been more...

[@stevenlara8619]

They obviously did a good job teaching her about money. She paid the loan back in less than 3 years straight out of college. The best lessons are the ones that require a little pain. She needs to change her mindset

[@johnmartin4641]

She lost $18,000 plus all of the compound interest she would’ve earned. It cost her money. The only lesson is how to lose money. That’s a terrible lesson and why we make people get certified before they’re allowed to teach. Anyone that can put together an excel spreadsheet can easily see this is a terrible lesson. $18,000 initial investment compared to $0 initial investment and $18,000 in debt. $18,000 initial investment produces better returns while $0 and $18,000 in debt produces no returns.

[@stevenlara8619]

@@johnmartin4641your explanation is all numbers. You must be a super boring human being. Life is not all about numbers. Wisdom is beyond your comprehension

[@housefanman]

That is not 20% interest. Some of that money was borrowed for 7 years, freshman year until 3 years after graduation. So that definitely is not 20%! You would think a finance channel would know this. Also, you did not ask the caller the most obvious question.. How rich/poor are her parents? What if the parents took out a HELOC to let her borrow the money so she would not have to use a bank, since that is exactly what they gave as a reason. So she would not have to go to the bank, they did. I just don't like how the parents were put down like that without really any investigation. Or even basic math understanding.

[@aprilstiek7430]

These parents seem shady. Good parents don’t make money off your kids! They even tried to talk her into it by scaring her about repaying a student loan. It wasn’t a lesson in responsibility either. Lending her $15000 instead of just giving it to her could be a lesson. Charging interest is taking advantage. They just said give us the interest instead of the bank. Also, 20% interest! That’s as bad as a credit card! They were deceitful because they swayed her away from taking a loan at much lower interest from a student loan. Jerks!

[@DDDD-of3hv]

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....

[@dom7day]

This show telling younger gens "this is how you get ahead in life" but you make justifications when parents deliberately try to make a buck off their own kids. You all are something else 🤣

[@FutureDeadGuy007]

Agreed. It shows a lack of values in our culture. This BS "teaching a lesson" by throwing a financial obstacle is pathetic.

[@dom7day]

@@FutureDeadGuy007 Yeah its certainly a culture aspect. My parents didn't need to engrain financial responsibility in me by giving me a loan so they charge me interest as if they were a bank instead of family.

[@sajnishah2593]

This is why you need actual financial knowledge on financial shows.. Thats not how interest rates work.. 20% total over 7 years is 2-3% a year (say 4yrs college, 3 years to pay off = 7yrs). Its the annual rate that's what you typically compare.

[@victorialombardi]

I can’t imagine charging my child interest. Especially if he/she was a responsible, good kid.

[@pep590]

I understand feeling a bit resentful about your parents adding interest. Not about paying back a loan as they probably need that money back. But charging their own daughter interest on money for college? Most parents DO NOT do that. Pretty cheesy and I bet you have more resentments towards your folks than just this.

[@Mansini77]

I bought the family business from my parents back in 2015 for 275k. I had payments of 9 years at 4%. I’m making my last payment on June 1st this year. In total, I paid 325k and the business has doubled in value. My parents could have sold to another buyer and got their full amount right up front. I never felt taken advantage of, because I realized that I was putting no money down. I’m just glad to be rid of the loan and can breathe easier in a few days after the loan is finished. She was charged 3k interest. It would have been a lot more had it been paid off to a bank probably.

[@GAFB1122]

You said, "My parents could have sold to another buyer and got their full amount right up front." True. But your parents could have also sold it to you without charging you interest. Just saying, LOL!!

[@SalisburySnake]

@@GAFB1122 His parents are not obligated to give him $50k. You're assuming they're very rich and/or have no bills to pay, but that may not be true. The $50k might make the difference between being able to sell it to him vs. forced to sell it to someone else instead. Why have your parents not given you $50K??

[@GAFB1122]

@@SalisburySnake I'm not assuming anything. I proposed an alternative and it is up the person to reply, NOT YOU!!

[@SalisburySnake]

@@GAFB1122 it's a public forum, dudebro. Why did you not answer my question?

[@Sarah-psalm127]

We have payed double on student loans from interest. 3k was a win for her.

[@mluterancik]

You shouldn't charge your kids interest. That's insane to me. Considering they didn't even pay for her schooling or really help her any. That's just me but they did tell her up front. She just needs to accept it now. (I just thought of that more and it's actually crazy to me)😂

[@carolr7823]

It was not 20%. She didn't make payments for 4 years so the interest accrued.

[@pauljensen4773]

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?

[@GAFB1122]

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.

[@davidlloyd1526]

If you were a good parent, you wouldn't ask for the money back at all.

[@GAFB1122]

@@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.

[@GAFB1122]

@@davidlloyd1526 My kid will be successful. Yours not so much.

[@tmi4507]

A lot of strange comments here lol. If I had a kid I wouldn’t charge them interest as well as I would never “loan” my kid money. If I’m giving my kid money or paying for something, I’m giving it to them not loaning it. Definitely a lot of interesting thought processes in these comments.

[@CurieBohr]

She agreed to the terms. Walk it off. Too late.

[@PatrickDKing]

omg the people and advice in this episode are horrible. It's 20% straight interest with no options of deferment, forgiveness, building up credit history, tax deductions, etc. I'd send a bill to the parents for all the expenses you incur in life because they couldn't control their hormones and forced you into this world and these expenses. I'd be curious how things work out when the parents need senior health care/retirement home care. I'd be really curious how that ends up working out.

[@johnsradios484]

Ridiculous charging your child interest. Pay back the money but going forward you know where you stand with your parents

[@bebop504]

Exactly. Totally agree. Parents used her to make $3k.

[@InverselyComplicated-ve3ls]

You don't know what the parents' situation was, they could've borrowed against credit cards, or early withdrew from their retirement account with a penalty to loan her the money.

[@bebop504]

@@InverselyComplicated-ve3ls Then they shouldn’t have done that. She could have just got a student loan instead of them going through all that. They charged her way too much in interest. Shouldn’t have charged her anything.

[@InverselyComplicated-ve3ls]

@@bebop504 The interest they charged was less than a student loan.

[@bebop504]

@@InverselyComplicated-ve3ls That’s simply not true. She paid a whopping 20% in interest. That is crazy! I have four student loans, three of them are between 2-3% interest and the last smallest loan is at 6%. Please explain how the caller paid less in interest than that. And it doesn’t really matter that she took a couple years to pay the loan because the student loan issuers also give you flexibility with your payments and allow you to either start paying late or do various income based repayment plans. And I’m not suggesting student loans are good because they aren’t. I’m just saying, she paid TON of interest for a very short time (took only 3 years after graduating).

[@JarettHerder]

$3000 of interest paid back in 3 years is like 11% interest. Also, she isnt able to deduct the interest like normal student loan interest can be deducted. Also again! I bet the parents didnt claim that $3,000 as interest income. Her parents scammed her.

[@YourTransmissionRepair]

Buyer's remorse. I'd charge my kid also. I'm paying 29.99% on my credit card; 20% is a deal.

[@janeself9827]

@@YourTransmissionRepair you accept paying 29.9 percent from thieves

[@mdees88]

This loan was 3%, not 20%, but she doesn't understand that.

[@khashiffnurse4341]

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.

[@jasonmcfarland4316]

These parents are awesome. Kids could only wish to have parents this nice. This lady‘s husband is not very smart.

[@johnmartin4641]

He knows if she didn’t have to pay $18,000; that money could’ve been put towards their kid’s’ education and be worth a lot more by the time they’re in college. The only people who aren’t smart are the ones who think paying $18,000 is better than keeping $18,000 and/or investing it. A simple spreadsheet in excel can easily prove them wrong. I made one a while back and it proves they’re wrong.

[@Mayorwhiskers2]

Let me tell you a little story about compound interest and how much each student payment goes to the principle... Id gave been greatful if i only had to pay $3000 in interest on that initial amount. I get not every parent charges interest but they didnt take advantage of her. They just didnt fully coddle her. Too bad she didnt get what they actually gifted her- her husband too for that matter

[@DMS1010]

It’s sleezy but she knew what she signed up for.

[@yeahnawnaw]

she was in college for 4 years and had 3 years AFTER college to pay it off. 7 total years. Ultimately it was about 4.5% interest in reality, not 20% lol. Seems perfectly reasonable in my eyes. Not sure how that is sleezy. Not alot of parents even have $15k on hand they can even loan their kids.

[@jimmymcgill6778]

It's not sleezy.

[@jimmymcgill6778]

@@yeahnawnaw Not all college is 4 years,

[@AzeveidoMateus]

Disagree. The idea of charging someone you love especially your children interest is distasteful. Either lend them the money or don’t. But don’t use their need as an opportunity to make money. I get it, the interest rate was lower than she would pay at a bank. But in my opinion it’s not about the numbers. It’s the principle of the matter that feels wrong.

[@lav7161]

I'd watch out for that marriage of yours, not your past loan with your parents. The husband sounds like a drama queen 💅👸

[@alanj9978]

Yeah I'd be like, you agreed to it? OK, done deal.

[@FutureDeadGuy007]

Husband sounds like a good man who cares that his in-laws are willing to take advantage of their own child. His red flags on them are just as valid.

[@nataliazakula3400]

I’m losing respect for this show. Her husband didn’t “sway” his weakminded wife, he simply illuminated the reality, which is that her parents are petty misers.

[@BrianW211]

Haha, so many people's perception of compound interest is really wrong. If you get a mortgage for 5.5% on your home and pay it off over 30 years you'll end up paying the equivalent of the the original purchase price of the house just in interest. You don't call it 100% interest, though. It was 5.5% compounded for 30 years. The same is true for this loan. Assuming she got this loan at the beginning of a 4-year degree, and paid it off 3 years after graduation, and didn't make any payments those first 4 years, the annual interest rate over that 7-year period was about 3.3%. I.e., her parents gave her a great interest rate.

[@jackpalczynski7884]

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.

[@DBS472]

Wow, most ungrateful kid trying to change a deal she agreed to.

[@chessmaster1115]

She had the loan for 4 years the parents easily could have not given the 15k and made more money on interest on that money for four years but instead allowed her to have for 4 years and then another 3 to pay it off. She got a good deal. No need to be upset.

[@JoelPaez09]

I would rather get a loan from a family member, with that little of interest. Instead of going to a bank that would charge you way much more.

[@MrTmenzo]

Ungrateful more like it. Have you seen the majority of students having student loans for decades due to a higher apr 😂

[@pauljensen4773]

20% over a 3-year (plus time in school) loan is not high. That sounds like 4% annually.

[@firstsecond9569]

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%