Hi guys, so i just got approved for a home equity loan through my parents and its a very generous 3% interest rate so i'm pretty happy about that. However, because it is not a student loan, my parents would be responsible for the monthly minimum payment (800ish dollars). I already turned in my FAFSA and waiting to hear back on what i get but i was wondering, am i allowed to take my own private student loan and use that to pay the monthly minimum on the home equity loan? I say this because a student loan i can defer payments till after i graduate school so my parents wouldn't be on the hook for anything and can retire sooner. The student loan i would theoretically take out would be just enough to cover the monthly minimum payments (800ish dollars x 12 months ~ 10000) because a student loan is usually much higher interest %.
am i allowed to do this? (loans questions)
- Thread starter dp93
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You can spend your student loan money however you like. They give you a lump sum twice a year.
