Ask Terry Questions Grad Student Loan Payoff

Grad Student Loan Payoff

By Terry Savage on October 09, 2023 | College Savings / Student Loans

I would like to help my daughter with her Grad Student Loans. I would payoff the entire amount for her ( 6 loans are at 6.8%, 1 loan at 7.9%), and she would pay me back a pre-set amount monthly. I don’t want any interest on what I’m lending her, just a flat amount until the debt is repaid. However, if the government implements a Loan forgiveness program, I don’t want to have paid the entire amount if part (or all) of it may be forgiven. Do you feel that a loan forgiveness program will be implemented? Thank you!

Terry Says

I think she should first look into all the possibilities of deals regarding her current student loans. Suggest contacting student loan expert Rae Kaplan ( to examine her situation.

If there is no real relief available, then be sure to document your deal with her on paper. Charge a moderate amount of interest –perhaps 2%. That way, if she defaults, you can write it off.

Read this article to see how to do it!,can%20prevent%20misunderstandings%20and%20frustrations.

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