Are there tax implications when parents take a 2nd mortgage and repay a (non-dependent) child’s student loan?
My parents are refinancing their house and offered to pay off my student debt (~$ 90k) with money from a 2nd mortgage on the house. The interest rate would be lower than the student loan. I would then pay my parents back and our family will save on interest paid. I am married and not a dependent anymore. Are there any tax implications for myself or my parents if they do this? Is there anything else I should consider?
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