— Step 2: Use Your BLOC to Payoff Existing Debt —

Once you have found and ready to close on your home equity line of credit account,

have your lender (or you can do it yourself) payoff your existing debts.

The income used to pay the monthly debt payments will now become discretionary income for the BLOC program.


  • all credit card debt
  • all auto loan debt
  • all existing home equity loan debt
  • all personal loan debt

    note: after you pay off existing debt, you need to have a remaining credit line of $30,000-$40,000 for the BLOC program to function as your college financing tool. Make sure you open a sufficient credit line that pays off your debts and leaves open a $30,000-$40,000 credit line balance for college use: calculate how much your line should be based on your LTV position

Do Not Payoff:

Keep Yourself Out of Debt

Now that you have consolidated your debt payments, don't' take the extra income and get yourself back into debt. This defeats the BLOC program.

The money "saved" from paying your monthly debt payments will now be used to budget discretionary income to pay down the home equity line account and finance college.

Keep yourself out of debt so that BLOC program can work successfully.

We have more information about debt management plans at our affiliated
Credit and Debt Management Center

go to Success Plan: Step 3


10-Step Success Plan

  • [view] ST2: Payoff Your Debts

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