How to convince my mom to be the bank

[Garrett F Anderson]

I have about $17,000 in student loans at about 10% interest rate (one is fixed and other is adjustable but at the moment they are around the same %).  My mom has enough equity in her home that she could take out a loan of that amount but at an interest rate around 4.5%.  I told her that if she did this I would pay her back at an interest rate of like 6-7%.

This has 2 benefits: she is making money and I am saving money by paying at a lower interest rate & I am paying her instead of the bank. So:

1) Is this a good idea?

2) If so, how can I convince her that this is a smart idea?  She seemed weary about it when I first brought it up...

Thank you for your time!

[Matt P.]

@Garrett F Anderson Don't do this. If you buckle down and start doing everything you can to make money and don't waste anything you make you can pay off 17k in less than a year. Will it require discipline? Sure it will but it'll feel good to be able to show her and yourself that you can do this on your own. After you pay it and show her good financial discipline maybe she will be willing to be the bank for a future investment property deal you bring her. IMO suck it up, get on your grind and start building a history of good financial decisions. Good luck.