A relative of mine (working college student) asked me to loan her some cash

[Anonymous]

She has a part time job at the bookstore so she is working.
I guess she is too proud to ask her parents.

She is only asking for $100.

How much interest should I charge?

Is $10 fair?

For the record, she brought up paying interest.
I was going to send it to her regardless.

[Anonymous]

No, you shouldn't charge interest, and you should consider it a gift. If she pays you back and goes above and beyond the original amount, then accept it graciously.

[Anonymous]

If you can afford it, just loan her the $100. No interest.

[Anonymous]

Ok.

[Anonymous]

No interest. A gift since you likely remember how hard it was to work in college. Tell her to lay it forward someday.

[Anonymous]

Make sure she’s the one actually asking. Lots of emails a text scams out there. (assuming you didn’t talk to her in person).

[Anonymous]

One time thing and you can afford it? I'd make it a gift and not expect her to pay it back.

[Anonymous]

Anonymous wrote:Make sure she’s the one actually asking. Lots of emails a text scams out there. (assuming you didn’t talk to her in person).

Agree. Make sure it’s not a scam.
Can you afford to give away $100? All those people saying give it as gift - only do this if you can afford it.
If this relative does not have a relationship with me otherwise, I’d decline and send her back to parents.
If close to me, I’d lend it without interest, assuming it’s paid back within a year.
I also wouldn't count on it being paid back.

[Anonymous]

This is crazy or a scam.
She is far to young to be a beggar like this.
If she is that hard up she should be on an educational loan or not in college.
Talk to parents. Is she estranged from parents?

[Anonymous]

I’d also make it a gift.

[Anonymous]

I wouldn’t do it, it’s better that she uses her income from job and stays within her means. She can apply for a credit card. My concern is that if you loan her money, she may come to you frequently asking for money. It’s very tricky to loan money to family.

[Anonymous]

A loan like this made a huge difference for me as a college student. My relative did charge interest, but I wouldn’t if you don’t need it.

[Anonymous]

Anonymous wrote:Make sure she’s the one actually asking. Lots of emails a text scams out there. (assuming you didn’t talk to her in person).

Yes, make sure this is legit. I got a request like this recently and it seemed like it was from the person, but it really wasn’t! Very tricky.

[Anonymous]

How much interest would a bank charge for a similar amount?

[Anonymous]

Anonymous wrote:I wouldn’t do it, it’s better that she uses her income from job and stays within her means. She can apply for a credit card. My concern is that if you loan her money, she may come to you frequently asking for money. It’s very tricky to loan money to family.

A credit card is a terrible idea.