Arrange a Personal Loan From Parent?

[partypantss]

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I was wondering if anyone has any insight on setting up an agreement with your parent(s) to loan you some money and charge you an interest rate at a percentage that is significantly lower than the rate of federal loans but high enough to meet the minimum requirements set by the IRS. How big of a process is it to get a lawyer to draft up the appropriate paperwork? Luckily both of my girlfriend's parents are lawyers so they would likely help me set it up for little to nothing if it isn't super time intensive.

Anyone have any experience with this or know anything I'm missing? Seems like a pretty easy win-win situation; I get to dramatically reduce the interest I'm paying on a portion of my loans and my mother gets a nice basically guaranteed ~2.5-3% interest per year on her investment.

Thoughts?

 

[Goro]

Paralegals could probably do this for you.

 

[Toutie]

You might also want to consider getting a term life policy in the amount of the loan to protect their investment in you....just in case you should happen to step off a corner and get hit by a bus. 😱

 

[dinomite00]

Although this is a slightly different situation than yours, I found the comments to be quite insightful: https://forums.studentdoctor.net/threads/family-pay-for-med-school.1209024/#post-18510578

I hope that it is relevant enough to be of use to you!

 

[partypantss]

Thanks for the help everyone!