Many options for covering college costs have been presented on this website. The discussion, however, would not be complete without mentioning home equity as an additional option.
A home equity loan is an alternative used to finance a college education. In some cases, the equity in your primary residence can be borrowed against by opening a home equity line of credit. This is a popular option for those who have equity in their home and can afford the monthly payment. Home equity options can be discussed with an advisor at a bank or credit union.
Families should carefully compare the cost of borrowing a home equity loan to the cost of borrowing a PLUS Loan or private education loan before making any final borrowing decisions. Consult with a financial advisor and/or accountant to discuss these options, as well as any tax-related benefits of either or both options.
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Financial Aid Sense is a practical guide about college financing and is an important read for anyone needing to finance all or a portion of their college. Financiang options are discussed in greater detail in Financial Aid Sense – check out what our readers are saying!