Paying for College: Make the Dream Come True
Many American parents dream for years about the day
their child leaves for college. The moment can be bittersweet,
especially if your son or daughter is going to school
out of state, but for parents who are not financially
prepared, pride and nostalgia can be accompanied by
something akin to terror.
Taking out a second mortgage loan can be the answer
for home owners who find themselves in this position.
College tuition costs continue to skyrocket, and can
be upwards of $30,000 a year. Scholarships and grants
are helpful, but often not enough, especially when you
factor in the additional cost of books and of room and
board for on-campus students.
A home equity line of credit rather than a traditional
second mortgage loan can be a good choice. It can be
hard to anticipate the complete out-of-pocket cost of
a college education, especially if your ambitious offspring
decides to become a doctor or a lawyer, so opening a
credit line rather than borrowing a lump sum might be
the best way to finance it.
Make sure you have explored all options before deciding
on a home equity line of credit or second mortgage loan
as the best way to pay for your child’s education.
You will often get certain tax benefits, as well. Contact
a tax professional, to learn the exact amount which
may be tax-deductible. While this proves a good choice
for many families, every situation is different, and
putting your home up to secure a loan is a big step.
Your loan officer will be happy to discuss with you
the benefits and obligations of choosing a second mortgage
loan or home equity line of a credit to finance college