I'm divorced and as part of the agreement I am part funding my son's education. He has three year years to finish. I have been funding this through credit union loans and top up loans. Up until now I have been borrowing four grand a year, paying back around three grand and then topping up - and 'stretching' - as the next batch of fees are due.
As recently as November my CU, who know my situation, said it would be possible to 'stretch' this system to an eight-year term.
I am currently at 4.5 years. I planned on stretching the loan for now, and then increasing my monthly payments when both the fees and my maintenance payments start dropping off in about three years.
However, when I last applied for a loan for fees this January, I was told that the financial regulator had fixed the term of credit union loans to five years and they could not stretch any more.
I currently owe 11,000 to the credit union and am paying back at 250 per month. I have 5,000 in shares which is pretty much dead as I have to use it as collateral for further loans. So my total debt is around 6,000.
What with pay cuts, levies, suspension of TRS etc I am not in a position to increase my monthly payments to them.
I estimate I will need to borrow 18,000 (6,000 + 5,000 shares to pay off credit union) over eight years, leaving me with 12,000 for these fees.
Is there an institution that would be amenable to this?