How do you make a student loan?
You can make a $1,000 loan from home, with no need to go to a bank or a lender.
That is the principle behind a loan that lets parents borrow money to support their children.
What does it mean for you?
The loan is made out of the family’s money, so you can’t take it out unless you want to.
But you can borrow money from a bank, or a trust, if you’re a spouse or partner.
There are also special restrictions, such as limiting the loan to one month, or if you have a disability.
What is the interest rate?
The interest rate is 2.9 per cent, but you’ll pay interest on it for up to three years.
Is it tax-free?
It is not.
What can I do with the loan?
In some circumstances, you can use it to repay student loans you’ve taken out in the past.
You’ll get a bill of exchange from the lender.
You can repay a student debt with a credit card or pay it off online.
You might also be able to sell the loan for a profit.
If you do, you won’t be able get a tax credit.
For more information on student loans, read our FAQs about student loans.