After Paying Off Her Own Student Loans To The Tune Of $96,000, A Dave Ramsey Caller Says Her Parents Expect Her To Cover Her Siblings' Debt

A recent caller to “The Dave Ramsey Show” sparked a conversation that hits close to home for many borrowers: what happens when a personal loan becomes a family burden?

Sarah, 29, called into the show to share that she had racked up $85,000 in student loans under her name and another $50,000 through Parent PLUS loans taken out by her parents.

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She Thought She Was Just Paying Her Share

"I did tell my parents, of course, I would help them pay off whatever they put into their name," she said. And for nearly eight years, she did just that — working hard and throwing $1,000 a month at the debt. "So I have no debt legally in my name," she told Dave Ramsey.

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But when she recently told her parents she was about to wrap up her part and really focus on the final stretch, she was blindsided. "They kind of told me that they combined my loans and my siblings’ Parent PLUS loans that they took out for them into one big student loans pot," Sarah said.

That meant she hadn't just been paying off her own share; she'd unknowingly been contributing toward her siblings' debts too. "I don’t know what to do."

Dave Says She’s Done Her Part

Dave spoke plainly. "You don’t have any legal obligation at all," he said. "You do have a moral obligation because you promised to pay your part, but you did not promise to pay your siblings’ part. Correct?"

"Correct," Sarah replied.

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When she explained that she had been sending $1,000 a month for nearly eight years. That’s $96,000. What he would say to the parents is, “I paid in $96,000, including interest. That means I don’t owe anymore. Sorry, Mom and Dad. The rest of it is on you and bro. I did my part."

Dave emphasized that while it might be a tough conversation, it's a necessary one. "Mom and Dad, here’s the deal: I did not promise to pay anyone else’s loans," he said. "Mine was $60,000 at 7%, and with $1,000 a month for 8 years, the remaining balance would be zero."

Sarah admitted it would be difficult. "Only because, like, they’ve done a lot of other things for me, you know?"

But Ramsey responded plainly: "They changed your diaper, but you don’t have to pay them for that. That’s called being a parent."

According to Dave, most calls about Parent PLUS loans involve angry parents who are stuck holding the bill. In this case, he said, "mom and dad are the ones that stepped in it."

"Well done, Sarah," co-host Rachel Cruze added. "Morally, you’ve done everything to the T."

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