2006-07-14 00:47:38 · 10 answers · asked by chillywilly 1 in Education & Reference ➔ Financial Aid
I would say the college loan is better, if you default on a HELOC well then the bank can take your house away. Your daughter will have time to pay off a college loan after graduation, i believe the interest dies not kick in until that time (the high interest anyway).
2006-07-14 00:50:29 · answer #1 · answered by JDINFLA 3 · 0⤊ 0⤋
NO.. let them take out college loans for themselves.. if you get a college loan, and cannot afford to pay it for any period of time, they will let you take a break for about a year if you need to, or lower the monthly payments...
home equity loans dont do that......
also they have a lower intrest rate... and don't go on your credit unless u just totally refuse to pay or contact them........
2006-07-14 00:54:47 · answer #2 · answered by steveangela1 5 · 0⤊ 0⤋
Home equity lines of credit do not have fixed rates so you would be subject to rising interest rates. Do the student loan. She can defer it easily after graduation also, which makes adjustment after college easier.
2006-07-14 00:51:36 · answer #3 · answered by -- 5 · 0⤊ 0⤋
It is not a bad way but if something happens to you and you can't pay back the Equity line they can take your house. If you take out a loan for her and you can't pay it your house won't get taken away.
2006-07-14 00:51:24 · answer #4 · answered by Ineedtoknow 1 · 0⤊ 0⤋
No, it isn't. Maybe a second mortgage, but not a HELOC for the interest rates. Your daughter should be able to get lower cost loans than you can get.
I agree with what another poster said - the loans should be in your daughter's name - she should be responsible for taking them and paying for them. If you want to make arrangements to help her pay off the loans, that's up to you, but if you can not financially afford to pay for her school without risking your own assets, then you don't have a responsibility to send her to school.
2006-07-14 00:54:43 · answer #5 · answered by ceprn 6 · 0⤊ 0⤋
Personally, those college loans need to be in her name! So unless you are going to have her sign some special i.o.u. stuff I wouldn't recommend it. Generally speaking kids do better if they feel the pain of the money being spent! Of course if your daughter is a very money conscious person already (there are a few out there) it's just a question of best interest rates, risk, etc.
2006-07-14 00:51:59 · answer #6 · answered by psycho-cook 4 · 0⤊ 0⤋
Student loans are the best. They often gives you years and years to pay them back. The interest is lower.
It should be noted, however, you generally can't avoid Government backed student loans in bankruptcy!
2006-07-14 01:00:53 · answer #7 · answered by Anonymous · 0⤊ 0⤋
College loans. Lower interest rate...and she owns the loans.
2006-07-14 00:50:56 · answer #8 · answered by Anonymous · 0⤊ 0⤋
use the student loans, the housing market is artificially inflated and could tank any time. plus the student loans are fixed rate, and you can deduct the interest paid from your tax debt.
2006-07-14 00:54:57 · answer #9 · answered by ozzyfanjordan 2 · 0⤊ 0⤋
http://www.salliemae.com ( For student loans)!!!!
http://www.iefa.org -------> International Students on the web <----
http://www.about.com --->Great search engine and information site for everything <---
http://www.ed.gov/index.jhtml --> Dept. of Education for any questions<--
http://www.fastweb.com
http://www.gocollege.com
http://www.collegeboard.com
http://www.scholarships.com
www.walmartfoundation.org
2006-07-18 17:14:08 · answer #10 · answered by Anonymous · 0⤊ 0⤋