Originally Posted by Dvae

Instead of loaning it tell them you are giving it to them. Only give a fraction of what they ask for. Say its not a loan as you know they won't pay it back so if they ask for $1000 'give' them 50 or 100. $10000 give them $100.
It will save you a ton of money.

As to the current situation the 'red flag' was that her dad would not loan her money then theres probably a good reason.
It would be interesting to know what is reason is.