Jun 12, 2025
After receiving pushback from his parents over how he used a student loan refund, Tyler called into The Ramsey Show from Knoxville with claims that his parents were “financially abusing” him.
“I'm struggling with the fact that my parents are kind of financially abusing me,” the 22-year-old University of Tennessee student told cohosts Jade Warshaw and Ken Coleman in a clip posted May 30.
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He says he received around $4,000, partly from a work study and also a student loan refund, which he used to pay off some debt. His parents didn’t react well.
“They were just absolutely furious at me, saying that was their money, and about how hard they worked to put me out here and everything like that,” Tyler said.
But after getting more details, the cohosts strongly disagreed that Tyler’s parents were exhibiting signs of financial abuse.
Family matters
It’s unclear how much of the cash Tyler received was from a student loan refund. Warshaw clarified that student loan refunds can happen when, “you took out a loan and the loan was too much for what school actually costs, and so they gave you the money back in cash but it is still loaned money.”
Tyler and his mom both cosigned on the student loan, which means the money would be tied to her as well.
But Tyler described his parents as “spenders,” and while they’ve helped him financially, he also says they’ve previously haggled him for money.
“It's just a money struggle,” he said. “When I ask for money if I need it, they just never give it to me or they're 50-50 on it.”
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Coleman was quick to jump in: “But that’s not abuse.” The cohosts agreed.
“Let me be very clear. You need to stop saying they're financially abusing you, because this is not anywhere close to it. It's dramatic. And by the way, words matter,” Coleman said.
Both cohosts praised Tyler for thinking differently from his parents about money, but suggested he start acting differently toward them. There may always be tension when it comes to opinions about finances, but there are ways to respectfully move forward.
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Cons of cosigning a loan
The cosigned student loan represents one point of financial tension between Tyler and his parents. But for any relationship, cosigning on a loan can lead to strain.
When you cosign on a loan of any kind, each party is legally responsible for paying it off — even if the loan isn’t for your benefit. Sometimes a person who seeks a cosigner may have bad credit and requires the backing of a trusted individual. Before you cosign on a loan with anyone, ask yourself if you can afford to take on the payments if the other person can no longer do so.
If cosigning would derail your financial plans, and you still want to help a friend or relative who needs money, consider some alternative ways to support them. Financially speaking, you could provide budgeting guidance or even offer to loan them some of your own money, which they can repay using a friendly, but firm, payment plan.
The risks of cosigning are real. It increases liability and your credit score could suffer greatly if payments aren’t made. So, if you’re not comfortable with the practice, you can always say “no.”
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Sarah Sharkey is a personal finance writer who enjoys helping people make optimal financial decisions for their situation. She loves digging into the nitty-gritty details of financial products and money management strategies to root out the good, the bad, and the ugly. Her goal is to help readers find the best course of action for their needs.
