What Do I Do If Someone Else Wants To Pay My Student Loans?
I have a family member that wants to pay off my federal direct and other student loans. He says its a bad idea to have it where he sends me the money then I pay the lender. He would rather pay them directly. Is this legal? If so, how does it work?
I can’t find any information at dl.ed.gov.
Suddenly Human said
am January 23 2010 @ 9:27 pm
Of course it’s legal. If he/she wants to do this then let them. You and your relative can do it any way you like. Paying off a loan is easy.
Give your relative the info needed to pay the loan including the lenders name, address and your loan number so they can pay it. Or you could have your relative write a check or get a cashiers check to the loan company and you mail it to the lender that would work too. Either way, you do not really WANT a check written out to you… that could be considered income to you that you may have to pay taxes on and report as income on future fafsa applications.
JD said
am January 23 2010 @ 10:38 pm
>”how does it work?”
Go to the lender and find out the pay off amount and pay it! The lender does not care where the money comes from!
>”I can’t find any information at dl.ed.gov”
Of course not, you need to deal with the lender. Try to use a little commonsense!