Personal Finance

Would you pay the student loan for your kids if they couldn't find jobs after 6 -month non-repayment period?

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  • Oct 10th, 2021 11:24 pm
[OP]
Sr. Member
Jan 24, 2015
521 posts
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Oakville, ON

Would you pay the student loan for your kids if they couldn't find jobs after 6 -month non-repayment period?

And is it a good idea to pay it all at one time? Thanks.
79 replies
Member
Apr 8, 2017
362 posts
224 upvotes
Was your plan all along to pay for their education? If yes then sure go for it, otherwise i would hold off from helping them now as debt will teach them valuable lessons. Alternatively you can help them buy a place of their own couple of years down the road.
Banned
Oct 27, 2014
64 posts
47 upvotes
Lol my student loan repayment was like 150 a month? you can make that in half a day as an able bodied young man with next to no experience. my kid could get a part time job while searching for something better and pay their own damn loans. this is not france, theres plenty of work for kids here.
Last edited by JohnL843 on Aug 11th, 2021 6:02 pm, edited 1 time in total.
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Jul 18, 2020
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I will not help to pay off their debt, they need to learn basic finance in order to survive in this world. If they can't find a job after 6 -month non-repayment period, go work at Walmart or Amazon warehouse, those places are always hiring.
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Jan 19, 2017
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ChristineY wrote: And is it a good idea to pay it all at one time? Thanks.
If you can invest the money to earn higher return which you will use to pay off the loan, then no. I.e. if the rate on the loan is 3% and you can earn 4% from investment. Also interest on the loan is tax deductible.
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Jun 12, 2008
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Ripley
Why haven't they found a job? Jobs are plentiful these days. It might not be what they want to do but mine would be working and paying their debt.

I have 1 graduated and 2 in college/university. We don't live close enough to commute so they had added living expenses. They all worked and saved in highschool to pay for post-secondary. We contributed some to their RESPs. They could all graduate debt free. They don't currently have to work during the school year like I did.
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Jan 21, 2014
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It depends on the situation. whether If you can afford it, if you have more than one kid, if they haven't found their right job/career yet? if they were always responsible with their money previously, etc. We definitely will pay for our daughter's loan if she were in that situation.
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Mar 10, 2005
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It depends on the situation but in general they should be working - at any job - to pay that off.
"If you want to improve, be content to be thought foolish and stupid." - Epictetus
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Dec 5, 2006
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ChristineY wrote: And is it a good idea to pay it all at one time? Thanks.
Depending on why they cannot find the job. If it's really due to labor market, then probably. If they don't even bother actively looking, then no

Regardless don't pay full amount. Otherwise next time, they will expect you pay mortgage
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Sep 14, 2012
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ChristineY wrote: And is it a good idea to pay it all at one time? Thanks.
For me, I don't have any kids but I think it would depend on the reason why they couldn't find a job after 6 months.

I would say that jobs in the service industry now are plentiful. Are they being picky like for example, they graduated with an accounting degree and will only accept full-time accounting jobs that pay a certain salary? They can get a job in a part-time restaurant or a job in a part-time grocery store and afford to make some sort of payment while they wait for the job which matches their studies.

If they weren't being picky but for some reason was having an issue finding a job, I would probably help out a bit with the loan but would never pay it off at one time.

As someone else mentioned, if they were just sitting around at home and not doing much, I probably wouldn't.
[OP]
Sr. Member
Jan 24, 2015
521 posts
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Oakville, ON
lmcjipo wrote: For me, I don't have any kids but I think it would depend on the reason why they couldn't find a job after 6 months.

I would say that jobs in the service industry now are plentiful. Are they being picky like for example, they graduated with an accounting degree and will only accept full-time accounting jobs that pay a certain salary? They can get a job in a part-time restaurant or a job in a part-time grocery store and afford to make some sort of payment while they wait for the job which matches their studies.

If they weren't being picky but for some reason was having an issue finding a job, I would probably help out a bit with the loan but would never pay it off at one time.

As someone else mentioned, if they were just sitting around at home and not doing much, I probably wouldn't.
He has a bachelor degree with double major in maths and statistic, and is looking for a data analyst job. But in Indeed, even for a junior position, thare are 150-300 applicants. I'm thinking about paying it off for him at one time and letting him pay me back later.
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Mar 10, 2018
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does it matter?
ChristineY wrote: And is it a good idea to pay it all at one time? Thanks.
Yes. Simple. And yes.
Tried new coffee and doughnut. Found same old stale thing. expected bill of six bucks but it was 600 million. Big mistake so the guy said don't worry it is on the house. going back to McD.
[OP]
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Jan 24, 2015
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Oakville, ON
mkl38s wrote: It depends on the situation. whether If you can afford it, if you have more than one kid, if they haven't found their right job/career yet? if they were always responsible with their money previously, etc. We definitely will pay for our daughter's loan if she were in that situation.
I only have one child. He has a bachelor degree with double major in maths and statistic, and is looking for a data analyst job. But in Indeed, even for a junior position, thare are 150-300 applicants. He had some interviews, but hasn't succeeded yet. I'm thinking about paying it off for him at one time and letting him pay me back later.
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ChristineY wrote: He has a bachelor degree with double major in maths and statistic, and is looking for a data analyst job. But in Indeed, even for a junior position, thare are 150-300 applicants. I'm thinking about paying it off for him at one time and letting him pay me back later.
What's stopping him from applying for a part-time job not related to his studies while he looks for his "ideal" job? Pride? A part time job shouldn't affect him or anyone else from looking for a job in his/her field of study.

I see a lot of students and recent graduates refuse to take a part time job since they consider it beneath them and not related to their studies.

When you have bills to pay, it is a life lesson. When someone pays your bills, you become less incentivized to find a job outside of your field.
[OP]
Sr. Member
Jan 24, 2015
521 posts
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Oakville, ON
lechan wrote: I will not help to pay off their debt, they need to learn basic finance in order to survive in this world. If they can't find a job after 6 -month non-repayment period, go work at Walmart or Amazon warehouse, those places are always hiring.
He worked in restaurants during part time before covid-19 and graduated this year. He is trying to find a professional job such as a data analyst, but hasn't succeeded yet.
[OP]
Sr. Member
Jan 24, 2015
521 posts
86 upvotes
Oakville, ON
lmcjipo wrote: What's stopping him from applying for a part-time job not related to his studies while he looks for his "ideal" job? Pride? A part time job shouldn't affect him or anyone else from looking for a job in his/her field of study.

I see a lot of students and recent graduates refuse to take a part time job since they consider it beneath them and not related to their studies.

When you have bills to pay, it is a life lesson. When someone pays your bills, you become less incentivized to find a job outside of your field.
He did have a part time job at restaruants before covid -19.
Sr. Member
Jul 18, 2020
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ChristineY wrote: He worked in restaurants during part time before covid-19 and graduated this year. He is trying to find a professional job such as a data analyst, but hasn't succeeded yet.
Another option is you pay off his osap and you offer him an interest fee loan to pay you back. If you don't need the money, you can invest the money that you collected from him in the stock market (use his tsfa) so when he is ready to buy his first home there will money ready for him.
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Jun 12, 2008
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Ripley
ChristineY wrote: I only have one child. He has a bachelor degree with double major in maths and statistic, and is looking for a data analyst job. But in Indeed, even for a junior position, thare are 150-300 applicants. He had some interviews, but hasn't succeeded yet. I'm thinking about paying it off for him at one time and letting him pay me back later.
He needs to be working. Any job is better than no job. I have a bachelor degree and have always worked but never in what I thought I would be doing. Has he considered retraining in a field that doesn’t have more applicants then jobs? Or some courses to make him stand out? If he has debt he needs to be working. I’m assuming you are already taking care of all his other bills. He might not be able to go back to his precovid job but there are lots and lots of places hiring for service jobs or factory jobs. They might not be his “forever” job but they might lead him where he wants to be.

I recently quit an office admin job (burnout) and took a part time job checking people in at a covid testing centre. That covid testing centre job lead to three interviews and three job offers within 2 months. I now work full time making double what I was. No further education, just connections through a random part time job. If I had been sitting at home or stuck in my other job I never would have got those jobs. He needs to get out there.
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Dec 5, 2006
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ChristineY wrote: He has a bachelor degree with double major in maths and statistic, and is looking for a data analyst job. But in Indeed, even for a junior position, thare are 150-300 applicants. I'm thinking about paying it off for him at one time and letting him pay me back later.
You probably need ask him to take a look at his resume writing or format

With that background, it's not that difficult to find an data and analytics related job such as data scientist

Might be he can post his situation or resume in career forum to get some help
Sr. Member
Apr 16, 2015
978 posts
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ChristineY wrote: I'm thinking about paying it off for him at one time and letting him pay me back later.
That's probably not a great idea. If you want to pay it off as a gift, that's your call, but to expect him to pay you back is likely to just cause family problems for years to come. I don't think there's a problem with making his payments for a few months until he has a job, but wiping out his total debt, and "letting him" pay you back when he can, just sends the wrong message about how debt works in the real world. Let him see the interest starting to accumulate, Let him feels a little stress over it.

It's time to teach him about being an adult. That doesn't mean that you have to force him into menial labour as others have suggested, but don't bail him out too easily. If you're giving him hundreds or thousands of $ that you worked for, tell him to consider it as his birthday/Christmas/graduation gift (and stick to that when the occasion rolls around). Let him know that you are sacrificing your own spending/retirement, etc. to help him get started in life. Make him appreciate what you're doing for him and not to expect it in the future.

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