Sending your kids to college, but unsure if you have the resources to cover it? The equity in your home could be the answer.
When our children leave for college, we want them to focus more on their classes and less on how to pay for it. If the bill is higher than what you planned, the equity in your home can serve as a back-up plan if other payment sources such as scholarships or grants, savings, student employment and student loans don’t add up.
Having an equity line of credit set up just in case you need it is great for your peace of mind. You aren’t charged interest unless you use it and even then, the rate is typically lower than many other options.
The college financial aid office is a good resource for determining what type of aid is available – scholarships, grants, work-study programs and student loans. Many high school guidance counselors can also help navigate through the financial aid maze.
Scholarships and grants are the most economical option to pay for college since it’s free money! Many organization offer various amounts from as little as $250 per semester to full rides. Some scholarships are based on need, while others are based on scholastic achievement or athletic ability. If your child falls between the cracks on the big scholarships, you may be able to find some niche scholarships based on his or her intended major or interests.
Savings is another option, but many parents find themselves a little short. If you have to choose between your own retirement and your child’s college tuition, most financial experts say to choose your retirement – there are no loans designed to fund your retirement, but there are various options for college tuition. If tuition and other college costs are higher than your savings, there are still options.
Many colleges offer on-campus work options. Students can serve in many capacities, they just need to contact the career services office to determine what’s available. There are also many off-campus part-time jobs and internships they could apply for.
Our children are excited about the next step in their journey. You want to make sure you have the resources to help. Contact us today to find out if a Home Equity Line of Credit will work for you!