Turn Down Dad's Offer
Beth's dad just offered to pay off her and her husband's student loan debt, and they could pay him back at a lesser relationship. Dave recommends turning that offer down.
QUESTION: Beth in Texas and her husband are about to have a baby, but it’s cutting their income by half. Her dad just offered to pay off their student loan debt, and they could pay him back at a lesser relationship. Dave recommends turning that offer down.
ANSWER: That’s very sweet but no, thank you. You don’t want to change your relationship with your dad, and that will change it. It might not change your relationship, but it’ll certainly change how your husband feels. The borrower is slave to the lender. When you have Thanksgiving dinner with your master, it never tastes the same. I’d rather be in debt to Sallie Mae than I would to him. If he wants to just pay it off, that’s a nice gift, and we would consider accepting that. But if he expects it to be repaid, I’ll pass.