Home equity loans for college can offer financial advantages but risk home foreclosure and negative equity.
Using home equity loans or HELOCs to finance college can offer advantages like lower interest rates and larger borrowing amounts compared to personal loans. However, this approach adds to personal debt, risks home foreclosure, and could lead to negative equity. Alternatives include federal and private student loans, financial aid, and scholarships. Families should carefully evaluate all options and their financial implications before deciding on home equity for education costs.
September 13, 2024
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