Stock Market logoStock Market Station

All the stock market news, every minute updated!

28 July 2021
18:27 hour

The Moneyist: My sister co-signed our nephew’s student loans for $35,000. When he defaulted, she paid them off. Should his parents repay her?

Market Watch

22/07/2021 - 06:35

‘I asked my mom to have her compensated from our other sister’s proceeds, but my nephew’s mother said it was not her issue.’


READ THE FULL ARTICLE ON MARKET WATCH

Related headlines:

  1. The Moneyist: ‘She continues to fail upwards’: My parents’ lakefront property has been in my family 100 years. My financially unreliable sister says she deserves it (30/06/2021 - Market Watch)
    ‘My middle sister has not been as successful as my oldest sister or me, and lives paycheck to paycheck with help from my parents.’
    [visit article]
  2. The Moneyist: My sister took care of our parents, and kept their $80K savings when they died. Now she wants to live rent-free in their house (09/06/2021 - Market Watch)
    ‘None of us are wealthy, but because my sister lived with my parents for approximately eight years prior to their deaths, we didn’t contest her demands.’
    [visit article]
  3. The Moneyist: I bought my parents’ house at below-market rate as a favor — now my sister wants me to finance an extension to house our mother (11/05/2021 - Market Watch)
    ‘My sister has a bunch of lumber sitting on her lawn, and no money to pay the contractor.’
    [visit article]
  4. The Moneyist: My sister’s home is in foreclosure, so she’s moving in with our parents. She posted on Facebook that she deserves their home (26/04/2021 - Market Watch)
    ‘She is the power of attorney for my parents and will be executor of their will. She is getting a payment from Veteran Affairs to take care of them.’
    [visit article]
  5. The Moneyist: My husband and I bought a $387K building with my parents. We sold it for nearly $1M. We took care of it. Do we still split it 50-50? (23/04/2021 - Market Watch)
    ‘My parents put down 50% in cash and my husband and I financed half. We paid $18,000 back to my parents. I figure I did $100,000 worth of work.'
    [visit article]
  6. The Moneyist: My husband and I bought a $387K building with my parents. We sold it for nearly $1M. We took care of it. Do we still split it 50-50? (23/04/2021 - Market Watch)
    ‘My parents put down 50% in cash and my husband and I financed half. We paid $18,000 back to my parents. I figure I did $100,000 worth of work.'
    [visit article]
  7. The Moneyist: My parents made my sister executor of their $4 million estate, and joint owner of their bank accounts. Should I be worried? (12/04/2021 - Market Watch)
    ‘We have five other siblings who are currently unaware of this arrangement.’
    [visit article]
  8. The Moneyist: ‘She is a financial idiot and partier’: I loaned my sister $4,780 for a lawyer during her divorce. I am still chasing her to repay me (26/02/2021 - Market Watch)
    ‘She earns $90,000 to $95,000 a year, but this year’s excuse is that she is in arrears for child-support payments.’
    [visit article]
  9. The Moneyist: ‘I am not a loan shark’: I loaned my sister $20K and she repaid me after two years with insane interest: 30%. What do I do? (23/06/2021 - Market Watch)
    ‘She argues that it is not too much because it took her over two years to repay the loan.’
    [visit article]
  10. The Moneyist: ‘She just drinks the Kool-Aid my sister gives her’: My sister, 60, cries if my mom, 88, does not give her money for her cats, a car or rent (02/06/2021 - Market Watch)
    ‘She calls mom five times a day and texts her constantly. She burdens mom with every type of personal thing imaginable.’
    [visit article]
  11. The Moneyist: My wife had a baby 3 months ago. She has $160,000 in student loans — and just asked for my ‘blessing’ to work part time (24/03/2021 - Market Watch)
    A timely life lesson on Equal Pay Day.
    [visit article]
  12. The Moneyist: I care for my mother and sold her house. My sister says half the home belongs to her, and now she wants a loan. What do I do? (18/05/2021 - Market Watch)
    ‘My father, who passed away in 2009, and my mother had a joint will leaving all they owned to my sister and I.’
    [visit article]
  13. The Moneyist: My fiancée makes $90,000 a year. I make $150,000. Should we merge our finances after we marry? (04/06/2021 - Market Watch)
    ‘She has roughly $40,000 left in student loans, and we share an investment in a land parcel with a $65,000 loan balance remaining.’
    [visit article]
  14. Should I take out student loans to invest? (07/05/2021 - Reddit Stock Market)
    For context, I am going into my last year of college and at the moment I have a total of 5k in unsubsidized student loans. Thanks to various grants and student aid all my schooling has been basically free besides paying to live in the dorms on campus and for a meal plan my freshman year. Right now I have an extra 5k of unsubsidized loans I could accept for this year at an interest rate of 2.75%. This money would go straight to me so would it not be smart to accept this and put it in the market? The interest rate is guaranteed for the life of the loan and if we were to see student loan forgiveness up to 10k It would be free money right? After simulating borrowing on the student aid website the monthly payments on a sum of 10k would be 50-70 a month. My first payment is not due for 2 years and my loans do not occur interest until I graduate. Am I being dumb or is this just free money? The interest rate barely beats inflation.   submitted by   /u/Auggie124 [link]   [comments]
    [visit article]
  15. How much is a student loan in the UK? (04/06/2021 - The Motley Fool UK)
    How much is a student loan UK? Will it be enough for your tuition fees and living costs? How will it impact your studies and future? We take a look. Before we continue, it’s important to note that the amount of student loan you can get in the UK can change each academic year. It is important to check the gov.uk website. [top_pitch] How do student loans work in the UK? Student loans include tuition fee loans to cover the cost of education and maintenance loans to help with living costs. There are also grants available to support students with financial hardships, disabilities, children or dependent adults. Whether or not you qualify for a student loan depends on: Your university or college Your course If you’ve studied a higher education course before Your age Your nationality or residency status You can find more details about these criteria on the gov.uk website. What is the maximum student loan amount you can get? The student loan you get depends on your unique circumstances and the criteria mentioned above. For the academic years 2020 to 2021 and 2021 to 2022, if you’re a first-time student, you could get up to £9,250 in tuition fees. However, if you’re studying an accelerated degree course, you could get up to £11,100. The maximum amount of maintenance loan you get depends on your academic year and where you live.   2020 to 2021 academic year 2021 to 2022 academic year Living at home Up to £7,747 Up to £7,987 Living away from home, outside London Up to £9,203 Up to £9,488 Living away from home, in London Up to £12,010 Up to £12,382 A year of a UK course studying abroad Up to £10,539 Up to £10,866 If you’re a part-time student, you can get a loan if your part-time course has a course intensity of 25% or more. Course intensity measures how much of your course you complete each year compared to an equivalent full-time course. The gov.uk website provides a student finance calculator to help you find out how much you could get. [middle_pitch] How long will it take to repay a student loan? How long it takes to repay your student loans depends on various factors: The total loan amount plus interest Whether your income is above or below the threshold (more on this below) Whether you have the money to pay off the student loan early You are required to pay back tuition fees and maintenance loans once your income is over the threshold amount for your repayment plan. You repay 9% of the amount you earn over the threshold for plans 1, 2 and 4. The percentage reduces to 6% for the Postgraduate Loan. It might also be important to note that the threshold amounts change on 6 April every year. Repaying your student loan for the fiscal year 2021/2022 How and when you are expected to repay your student loan depends on the loan plan you’re on: If you’re under Plan 1, you’ll only repay when your income is over £382 a week, £1,657 a month or £19,895 a year. This is before tax and other deductions. If you took out the loan in the 2005/2006 academic year or earlier, it is written off when you’re 65. However, from 2006/2007 onward, it is written off 25 years after the April you were first due to repay. Students under Plan 2 are expected to repay their student loan when their income is over £480 a week, £2,083 a month or £25,000 a year. However, it is written off 30 years after the April they were first due to repay. If you’re under Plan 4, you’ll only repay when your income is over £480 a week, £2,083 a month or £25,000 a year. If you took out the loan in the 2006/2007 academic year or earlier, it is written off when you’re 65 or 30 years after the April you were first due to repay. From 2007/2008, the latter applies. Students under a Postgraduate Loan are expected to repay their student loan when their income is over £403 a week, £1,750 a month or £21,000 a year. However, it is written off 30 years after the April you were first due to repay. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The Greggs share price is up 45% in 2021. Can GRG keep rising? Why I’m still buying Scottish Mortgage Investment Trust Where is the Boohoo share price going in June? 1 high-growth pick to buy for my Stocks and Shares ISA in June 3 stocks tipped for the FTSE 250. Would I buy? The post How much is a student loan in the UK? appeared first on The Motley Fool UK.
    [visit article]
  16. Worried about your child’s school fees? Here are some financing options (11/05/2021 - Financial Express)
    Most of these platforms offer parents the option to repay the amount on a low or zero-cost EMI basis. This usually helps in easing out the burden of the parents.
    [visit article]
  17. Invest or pay off student loan debt (07/07/2021 - Reddit Stocks)
    So I’m maxing out my Roth every year, I have a 3 month emergency fund, but I do not have a lot in my 401k bc I am a job hopper and career changer, I sold my condo for a nice windfall and put all the money in a brokerage account. Pay off student loans or focus on investing and pay the minimum on my loans?   submitted by   /u/Cute_Fun_3374 [link]   [comments]
    [visit article]
  18. The Moneyist: I’m 30. My wife is 34. We saved $350K and I have $350K saved for retirement. Should we pay cash for a home — or take out a mortgage and invest it? (07/04/2021 - Market Watch)
    ‘We have been cheaply renting for the last three years, and living as if I were still a very poor graduate student. During this time, we paid off all of our debts.’
    [visit article]
  19. Your Money: Of annuities, payouts and perpetuity dues (12/04/2021 - Financial Express)
    Instalments paid on loans such as housing loans, automobile loans, educational loans and personal loans are also examples of annuities.
    [visit article]
  20. : 2 million Americans have been repaying their federal student-loans for 20 years (12/03/2021 - Market Watch)
    Meanwhile, just 32 borrowers have been able to access student-debt cancellation through a government repayment plan.
    [visit article]
  21. : Schumer, Warren, Pressley urge Biden to extend student-loan payment pause — and cancel student debt (27/07/2021 - Market Watch)
    'To make borrowers repay their debts now, would be unfair, would be harsh, and in many instances would be cruel,' Senate Majority Leader Chuck Schumer told a press conference.
    [visit article]
  22. United Kingdom Consumer Credit (01/03/2021 - Trading Economics)
    Consumer Credit in the United Kingdom decreased to -2392 GBP Million in January from -965 GBP Million in December of 2020. Consumer Credit in the United Kingdom averaged 857.01 GBP Million from 1993 until 2021, reaching an all time high of 2251 GBP Million in January of 2005 and a record low of -7229 GBP Million in April of 2020. Consumer credit (excluding student loans) is defined as borrowing by UK individuals to finance current expenditure on goods and/or services excluding loans issued by the Student Loans Company. Consumer credit (excluding student loans) is split into two components; credit card lending and ‘other’ lending (mainly overdrafts and other loans/advances). This page provides the latest reported value for - United Kingdom Consumer Credit - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.
    [visit article]
  23. The Moneyist: My mom has dementia. My sister moved in and wants to buy the family home — at 50% of the market value (07/06/2021 - Market Watch)
    'When mom has been in need of money before, I have suggested a reverse mortgage, which our mom adamantly opposed.'
    [visit article]
  24. The Moneyist: My boyfriend agreed to go part-time to look after my teenage kids. I paid him $650 a month. We split up — and now he’s crying foul (16/04/2021 - Market Watch)
    ‘Since we have separated, I gave him a car, paid for his phone, paid for his car insurance and his health insurance.’
    [visit article]
  25. The Moneyist: My boyfriend agreed to go part-time to look after my teenage kids. I paid him $650 a month. We split up — and now he’s crying foul (16/04/2021 - Market Watch)
    ‘Since we have separated, I gave him a car, paid for his phone, paid for his car insurance and his health insurance.’
    [visit article]
  26. NerdWallet: See how this 24-year-old paid off $20k in credit card debt in less than a year (17/06/2021 - Market Watch)
    Along with student loans, she had racked up four credit cards by charging food, textbooks, school supplies and other expenses.
    [visit article]
  27. NerdWallet: See how this 24-year-old paid off $20k in credit card debt in less than a year (17/06/2021 - Market Watch)
    Along with student loans, she had racked up four credit cards by charging food, textbooks, school supplies and other expenses.
    [visit article]
  28. : Schumer: With relief bill, major argument against student debt cancellation ‘vanishes’ (16/03/2021 - Market Watch)
    The American Rescue Plan signed into law last week makes student debt cancellation tax-free
    [visit article]
  29. The Moneyist: I co-signed a personal loan for my daughter. The bank withdrew the money from my father’s account instead. How could this happen? (25/06/2021 - Market Watch)
    ‘The bank told us that we should have seen this sooner. They said all they could do is deduct the amount that has been paid from my father’s account from my daughter's account.’
    [visit article]
  30. The Moneyist: My sister inherited the family home, but not the contents. She set up a ‘garage sale’ — and key items were missing. Should I pursue legal action? (27/04/2021 - Market Watch)
    ‘She kept saying, ‘I have to think about my retirement.’ She is 67. I think she is padding her 401(k) with everything she can get her hands on.’
    [visit article]
  31. The Moneyist: ‘The house is truly in deplorable condition’: My sister moved into our late mother’s home in 2010. How do we get her out? (21/06/2021 - Market Watch)
    ‘When repairs are needed, which is often, she gets a church she knows to do the work as a charitable activity.’
    [visit article]
  32. How to best trade/invest $184K when I have $188K in student loans? (27/03/2021 - Reddit Stocks)
    I'm about to receive a large inflow of cash on the order of $184K due to a recent settlement. I also have $188K in student loans, but there is NO INTEREST accruing until the end of September. I'm trying to figure out the best way to take advantage of this cash while also mitigating risk. I'm not looking to yolo the money or anything, but throwing the money into an index or ETF also seems to slow. I've thought about just selling covered calls until then, although I'm not sure what stocks to buy. Any ideas on the best way to do this so at the end of September I'll have a decent chunk of change to pay off my loans and also have some left over? ​ EDIT: Just to be clear, my loans are interest free until September 30th 2021. I have six months until interest starts again. I think there's some confusion in the comments, of course I would pay my loan off the moment I get my check if the interest is actively accruing right now. Also edited my post to make this more clear.   submitted by   /u/archenon [link]   [comments]
    [visit article]
  33. Is it better to invest or pay off student loan? (07/04/2021 - Reddit Stocks)
    Hello, I am a recent graduate and I was just wondering what people's take on this would be. Is it better long term to pay off my loans in smaller increments while investing more, or to just try and pay off my loans as quickly as possible?   submitted by   /u/dangus_mangus [link]   [comments]
    [visit article]
  34. What to do to set my 2 year old nephew and niece up for when they turn 20 (23/04/2021 - Reddit Stocks)
    Hey there, I'm trying to invest in the future of my nephew and niece. They're both 2 years old and I want to be able to set up a college fund of sorts for them. I'm 27 and will be rid of student loans in the next couple of months. I can comfortably set aside $350-400 each month for this purpose and I plan to do so for as long as I am able to. I myself am new and don't have a lot invested but would like to start early on their behalf. What is the best strategy I could go for. I plan to cost average on a monthly basis. Should I go for standard ETFs like SPY, VTI or growth/tech like TSLA, AAPL, MSFT or maybe take the dividend route with O, T, SCHD, SPYD etc. ( I have very limited knowledge) I am pretty new to this whole scene (<3 months in) but I'd like to get something setup for them. Any tips would be helpful. Am I doing this too early? What factors should I consider? Should I setup a good portfolio myself and then focus on theirs? The other option I have is setup a govt controlled savings scheme in my home country. I can invest a max of around 2000$ every year in their account = 4000$ total. This savings will grow at <6% each year and will compound itself and is tax free during withdrawal (after 15 years+) . But I doubt it will beat the S&P 500 over a 15-20 year period considering inflation of my home currency and the interest rate is bound to change at any time. So I'd much rather have the investment in USD. Thanks!   submitted by   /u/vaccpn717 [link]   [comments]
    [visit article]
  35. The Big Move: I have nearly $600,000 in student debt after getting four college degrees. Can I still buy a home? (27/02/2021 - Market Watch)
    The coronavirus pandemic has complicated the process mortgage lenders use to underwrite home loans for people with student debt.
    [visit article]
  36. The Moneyist: My parents want to use $300,000 retirement savings to pay off $160,000 left on their home. Is that a good idea? (18/03/2021 - Market Watch)
    ‘I would like to be able to help them financially and be their safety net, but my means are limited.’
    [visit article]
  37. The Moneyist: My son, a college student, received 3 stimulus checks. I’m a dad trying to teach ethical behavior? What should we do? (30/04/2021 - Market Watch)
    ‘He has deposited them, but has not spent the money.’
    [visit article]
  38. The Moneyist: My father disowned me after divorcing my mother, and left my sister everything. Should I keep asking her to split his estate with me? (24/05/2021 - Market Watch)
    'I have to ask to even go on the property that my fathered owned. The property is gated. I have asked multiple times for the code to allow me on the property.'
    [visit article]
  39. The Moneyist: My daughter no longer speaks to me or my husband, and mocked our family values. Do we cut her out of her $2 million inheritance? (23/07/2021 - Market Watch)
    ‘She has told us that we are toxic parents, and she doesn’t need the stress we create for her with our beliefs.’
    [visit article]
  40. Fluent avails new $65M credit facility, will repay previous loans (01/04/2021 - Seeking Alpha)

    [visit article]
  41. How to avoid joining the 55k who overpaid their student loans last year (02/06/2021 - The Motley Fool UK)
    Around 55,000 graduates in the UK overpaid their student loans in the 2019/2020 financial year according to recently released data. Why are such a large number of former students overpaying their student loans? And more importantly, what can you do to avoid becoming one of these unfortunate individuals? We take a look. [top_pitch] Student loans: how do they work? Many students in the UK are entitled to borrow money to help pay for university tuition fees and living expenses. Those who have a disability, children, or who come from low-income families may be eligible for additional funds on top of these student loans. You begin repaying your loan once you have completed your education and are earning an amount that exceeds the repayment threshold.  Student loans overpayment: how big is the problem? According to the Student Loans Company (SLC), 54,516 graduates made overpayments on their student loans in 2019/2020. The stats show that a total of £23.1 million was overpaid. The average overpayment for each graduate was £424. However, the average amount overpaid has dropped 30% in the past four years, with the number of people affected dropping by 38% after the Student Loans Company changed its system. Why are so many graduates overpaying their student loans? Massive overpayments in previous years owed much to the fact that repayments are made through PAYE and until April 2019, HMRC only sent the Student Loans Company details of repayments once a year. So in the gap between repaying in full and sending the data, millions of people overpaid. However, things have changed since April 2019. HMRC started sending loan information reported by employees on a weekly basis. For those who get their salaries monthly through the PAYE system, HMRC sends the information on student loan deductions monthly. Despite this, many people continue to overpay. According to Sarah Coles, personal finance analyst at Hagreaves Lansdown, the problem stems from five mistakes, which she says frequently cause graduates to overpay: Ignoring messages from the Student Loans Company about the direct debit scheme. Not keeping contact details up to date with the Student Loans Company. This means they might miss messages about how to avoid overpaying. Ignoring messages asking them to repay the total balance. Not signing up to the Online Repayment Service, which actually allows loanees to check whether they’ve overpaid and need to request a refund. Not updating the bank details held by the Student Loans Company, so the overpayments can’t be automatically refunded. [middle_pitch] How can you avoid overpaying your loan? The easiest way to avoid paying too much, according to Sarah Coles, is by setting up a direct debt at some point in the final two years of the loan term. The Student Loans Company will write to you a year before your balance is due to be repaid, inviting you to join the scheme. They will then send you follow-up emails and texts. The advantage of this scheme is that debits automatically stop once your loan is repaid. Joining it could saving you hundreds of pounds in overpayments. Unfortunately, only a small percentage of people (21%) sign up for the direct debit scheme. How can you request a refund if you’ve overpaid? If you have overpaid, the Student Loans Company will automatically refund you anything up to £750 to the bank account it has on file, if it is current. Unfortunately, if they have an old account on file, they will be unable to do so. If your overpayment is £25 or less, you can contact the company on 0300 100 0611 and request a refund. If you don’t do this, the company will write off the overpayment. What can you do once you’ve paid off your loan? As for what to do with the amount that you are no longer losing on loan repayments, it would be easy to just absorb it into your regular expenses. However, a better option is to save it. If you don’t miss the money that’s been paying off your loan, why not keep up the habit but use it elsewhere? According to Sarah Coles, “if on the first available month you set up a direct debit of the same sum into savings, you can build a nest egg without noticing.” “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading 10% of 18-34 year-olds think their partner is lying about money 3 dividend stocks I’d buy in June 3 of the best cheap stocks to buy in June Revealed: Britain’s greenest property hotspots Just Eat Takeaway shares: does a 6-month drop represent a buying opportunity? The post How to avoid joining the 55k who overpaid their student loans last year appeared first on The Motley Fool UK.
    [visit article]
  42. The Moneyist: My mother-in-law bought shoes for my nieces to wear to a wedding, but not for my daughter — even though they all wore same dresses (02/07/2021 - Market Watch)
    'My husband's parents give money and gifts to his sisters and to their children, but they ignore us.'
    [visit article]
  43. The Moneyist: ‘From the start, problems began’: My sister persuaded me to rent my condo to my niece at below-market price — then they both moved in (28/06/2021 - Market Watch)
    ‘Although they did not pay full rent or first and last, they began to demand new appliances and ask for work to be done on the place.’
    [visit article]
  44. The Moneyist: I’m 28, have zero debt, a 401(k), Roth IRA and $45K in the bank. My parents want me to save for a home. I want a Tesla Model 3. Who’s right? (23/02/2021 - Market Watch)
    ‘I believe I can buy the car and strap down, and save more aggressively to replenish the funds.’
    [visit article]
  45. Lannett raises $350M to repay outstanding existing Term B Loans (09/04/2021 - Seeking Alpha)

    [visit article]
  46. The Moneyist: My husband’s sister and brother-in-law declared bankruptcy. The family helped them out — but they still spend, spend, spend (07/07/2021 - Market Watch)
    ‘They received about $20,000 from an inheritance that should have helped them catch up, but they still have trouble making ends meet at times.’
    [visit article]
  47. The Moneyist: ‘The thought of her keeping these ill-gotten funds just chaps my behind’: My granddaughter, 7, lives with me — yet her mother received her stimulus (07/05/2021 - Market Watch)
    'Will her mother have to repay the money she received for children she did not have custody of in 2020? Should it be reported to someone?'
    [visit article]
  48. The Moneyist: ‘The thought of her keeping these ill-gotten funds just chaps my behind’: My granddaughter, 7, lives with me — yet her mother received her stimulus (04/05/2021 - Market Watch)
    'Will her mother have to repay the money she received for children she did not have custody of in 2020? Should it be reported to someone?'
    [visit article]
  49. The Moneyist: ‘The thought of her keeping these ill-gotten funds just chaps my behind’: My granddaughter, 7, lives with me — yet her mother received her stimulus (04/05/2021 - Market Watch)
    'Will her mother have to repay the money she received for children she did not have custody of in 2020? Should it be reported to someone?'
    [visit article]

For more information mailto [email protected]. Disclaimer.