You Have To Pay

Hillary has a student loan her parents agreed to pay. Now they're losing income. Should she and her husband pay it? The loan is in Hillary's name.

QUESTION: Hillary in Washington has a student loan her parents agreed to pay. Now they’re losing income. Should she and her husband pay it? The loan is in Hillary’s name. Dave says she won’t have a choice but to pay it.

ANSWER: You won’t have a choice but to assume it. It is yours. You will assume it. You’ve already assumed it. You assumed it the day you signed it. They were just paying it, and now they can’t, so you better. The conversation with them doesn’t matter. If they don’t pay it, you have to. The student loan people are going to come after you. It’s in your name.

It’s not inappropriate to let your parents pay it if they’re able to and they want to. But I think you need to be prepared for the fact that their best of intentions may not matter. You probably are going to get this loan back if their finances turn upside down on them—no matter what they want.