Use a home equity loan to fund a college education
With college costs soaring faster than the rate of inflation, many parents are concerned about their ability to fund their children’s education. Government loans are available, but they will only cover so much. Savings plans can help too, but you have to start investing early to take full advantage of compounding interest. What other education financing options are there for parents?
If you are a homeowner, you may have sufficient equity in your home to take out a home equity loan or line of credit (HELOC). Home equity loans and lines of credit can be used for any number of purposes, with education financing being one of the most popular. And remember, the interest you pay on a home equity loan or line of credit may be tax-deductible (consult your tax advisor regarding the deductibility of interest).