Blograby

Home Equity Loans – Financing College With Your Home

From books and tuition, to lab fees and living expenses, college can be an expensive undertaking – but it’s one that’s well worth the investment. And whether you’ve saved for years and just need a little extra money to fill in the gap or your college savings is nil and you need to fund your entire education, if you own a home, a home equity loan or home equity line of credit (HELOC) may be just what you need to pay for the education you want.The BenefitsObviously there is a multitude of ways to pay for college, but with a home equity loan or home equity line of credit, there are some real benefits. Some of them include:o Home equity loan and home equity line of credit interest rates are often lower than other types of financing.o Potential tax benefits (which you should discuss with your financial advisor)o Because a home equity loan or a HELOC doesn’t require a full-time course load, (like most student loans) students can choose to attend classes on a full- or part-time basis.o Funds can be used for any educational expenses, including a new laptop, lab fees, housing, etc.o Your home equity loan or home equity line of credit funds will be sent directly to you – not the school.o No school certification is required, which means you can determine how much you’ll need to cover your educational expenses.Best of all, if you choose a company like Chase Home Equity, who has a simple online application for home equity loans and HELOCs, you won’t have to spend a lot of time filling out financial aid paperwork. Just a couple of quick minutes spent at your computer and you’ll be done in no time.The ConsiderationsObviously, with a home equity loan or a home equity line of credit, you’re putting your house up as collateral – and if you default on your loan, your home owner status could be in jeopardy. So it’s always a good idea to only borrow what you need and can comfortably pay back.Additionally, there may be ways to pay for college that won’t cost you a dime. With scholarships and grants based on everything from GPA and financial need, to financial awards for serving the community, it pays to research your options well – and apply for any tuition money you or your child may qualify for.

Exit mobile version