<prompt> Human: I am a first year medical student in the US. I go to a school with a 50,000 yearly tuition. I borrowed 65,000 for this year, and I expect to have to borrow the same for the next 3 years. My loans are divided in 42,000 from a direct unsub 5.84 interest loan, and the remaining 23,000 from a Grad Plus 6.84 interest loan. They will be in in-school deferment until I graduate, but interest is accruing from the date that I borrowed. My family wants to help me out by loaning me 30,000 each year at 2.9 interest rate. This way, I dont have to borrow from the higher Grad Plus loan, and can save money on interest. Im not very familiar with family loans, and I have some concerns about my stepmother. I think that this is more rpersonalfinance than rlegaladvice, but please let me know if I should be asking there instead. 10 years ago, she embezzled a large amount of money from my fathers business. I dont know the whole story because they dont want to share the gory details with me, but my dad is still with her and she didnt receive any criminal charges. What if the money that they loan me comes from something like that? Ive asked my dad multiple times, and he assures me that my stepmoms a different person now and she would never do anything like that again, but Im seriously concerned and I dont know who to ask. Should I just go with the safe student loans, even if I pay much more in interest?  <response>: Do not take this for a legal opinion, but if the money that your stepmom embezzled was reimbursed to the business, or if your father owns the business and forgave her the embezzlement, and if she paid the IRS taxes on the embezzled amount because it would still be considered income, believe it or not, as far as I know, then the embezzled money legally has been paid back or taxed or what have you. It no longer would be considered stolen money.If you are concerned that your stepmom may embezzle more money in order to lend you 30,000, then I understand the misgivings you have. 