Background

Maria had graduated with a degree in marketing and landed a great job at a growing company. However, she was still carrying $27,000 in student loan debt with an interest rate of 7%, which was slowing her financial progress.

Every month, she made payments, but a significant portion went toward interest, making it difficult to get ahead. She considered refinancing with a private lender, but the interest rates weren’t much better, and she was hesitant to give up the protections of her federal loan.

Her older brother, Daniel, who had already paid off his student loans and built a strong financial foundation, saw her struggle. Instead of letting her continue to pay high-interest rates, he offered to lend her the money to pay off the student loan in full, allowing her to refinance the debt with a lower interest rate and a more flexible repayment structure.

Loan Request & Agreement

Using Pari, Maria submitted a $27,000 loan request to Daniel with a 5-year repayment plan at 3.5% interest, significantly lower than her current 7% loan rate.

Daniel reviewed the request and made a few adjustments to better fit Maria’s financial situation:

• A 3-month grace period, allowing her to focus on saving before starting repayment.

• A one-time payment pause option, giving her flexibility if she ever had unexpected expenses.

• No penalties for early repayment.

Once they finalized the agreement, they digitally signed the loan contract through Pari, and Daniel transferred the funds instantly, allowing Maria to pay off her student loans in full that same week.

Repayment & Outcome

By paying off her high-interest student loans, Maria saved thousands of dollars in interest over time and was now making payments toward Daniel instead of a bank—with better terms and flexibility.

She set up automated monthly payments through Pari, ensuring she stayed on track without awkward money conversations.

After two years, Maria received a salary increase, and she decided to increase her monthly payments to pay off the loan faster. By year four—a full year ahead of schedule—she had completely repaid Daniel.

To celebrate, Maria took her brother out for a thank-you dinner, knowing that his support had helped her achieve financial freedom years sooner than expected.

Key Takeaways for Users

✅ Lower Interest, Faster Payoff: Maria saved thousands in interest by refinancing with a family loan through Pari.
✅ Flexible Repayment Plan: Daniel structured a grace period and a payment pause option to provide financial flexibility.
✅ Automated Loan Tracking: Payments were managed through Pari, keeping the process stress-free.
✅ Early Payoff Flexibility: Maria repaid the loan one year early without penalties.

Final Thoughts

Maria and Daniel’s story proves that structured family loans can help eliminate high-interest student debt while keeping financial relationships clear and fair. Thanks to Pari, they were able to set up a secure, transparent, and stress-free loan agreement that worked for both of them.

Looking to refinance student loans at a lower interest rate? Or want to help a family member pay off debt without financial strain? Pari makes lending and borrowing between family and friends secure, simple, and fair.

Download the app — Get started with Pari today!