'Don't Worry About This Loan,' Parents Said — $221K-A-Year Caller Now Stuck With $104K As 'Ramsey Host' Says, 'That's Not Fair To You'

A assemblage committedness made years agone is present driving a fiscal and household standoff.

John, a Chicago-based begetter of four, told "The Ramsey Show" that his parents took retired a $104,000 Parent Loan for Undergraduate Students erstwhile helium was 18. He said the indebtedness was ne'er meant to beryllium his work until expectations shifted aft his father's death.

"Don't interest astir this loan," John said his parents told him portion encouraging him to unrecorded connected field and get the afloat assemblage experience. Now 34 and married, with a combined household income of $221,000 a year, helium said helium is being asked to repay the full equilibrium himself.

"That's not just to you," co-host Rachel Cruze said.

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John said the knowing astir the indebtedness influenced however helium planned his big life. After his begetter became sick and could nary longer work, helium began making payments adjacent though repayment had ne'er been portion of the archetypal understanding.

"I felt obligated. Kind of guilty," John said erstwhile idiosyncratic concern adept Dave Ramsey asked wherefore helium started paying.

The equilibrium remains astatine $104,000. John said his precocious begetter near down a life-insurance payout estimated betwixt $200,000 and $250,000, but nary of it went toward the loan. Instead, the funds went toward paying for his sister's wedding, renovating the household home, and clearing his mother's car debt.

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Later, John learned the indebtedness had been consolidated without his knowledge. During a telephone with his parent and sister, helium realized that payments helium had been making were concisely applied to his sister's pupil debt.

He said helium ended up paying astir $2,000 toward her loans earlier discovering the issue. His sister present lives with their parent and is not paying her ain pupil debt, helium said.

John said helium had gone on with the statement for years, saying helium had go a "doormat."

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Ramsey outlined 2 options: proceed paying without ailment oregon halt and acceptable a steadfast boundary. John said continuing was nary longer realistic aft helium and his woman paid disconnected much than $120,000 of their ain indebtedness and committed to shared fiscal goals.