Financial Aid Notes

Many government programs and loans do not cover the full cost of education

So many students are turning to private student loans to make up the difference between total cost of school and any financial aid you may receive.

Private Student Loans are offered by financial institutions, educational institutions, and professional associations. They are not guaranteed by the government so the interest rate and origination costs may be higher.

The advantage of Private Student loans is that loan amounts are not tied to any federal or college limits —

You can borrow as much as you need up to the approved loan limit.

In addition, the funds can be used for any education-related expenses, including a new personal computer for school use.

Rates and origination costs are tied to the applicant's credit history.

The better your credit history (as a student and likely with a co-applicant such as your parent), the lower the rate and costs.

You need to consider the lending terms of private loans — borrowing money comes with fiscal responsibilities. Inability to follow repayment terms can affect your credit rating, making it more difficult to borrow in the future.

For information:
Private Student Loans: review eligibility requirements and benefits

Homeowners can use the equity value in their homes to pay for education.

Advantages include:

1. you are not restricted by federal loan limits
   
   
2. the funds can be used for any purpose — including auto transportation — as determined by the home equity owner
   
   
3. funds can be borrowed as they are needed — not all at once under many other programs
   
   
4. the home equity line can be available from year-to-year without submitting annual application and qualification forms
   
   
5. interest rates for home equity lines can be as low as the Prime Rate
   
   
6. the interest costs for borrowed funds may be deducted from your taxes if your qualify — see your tax advisor for further information
   
   
   

The home equity line of credit is the most popular type of home equity for college education.

The equity line allows parents to draw upon funds as needed for tuition, books, fees, living expenses and other miscellaneous expenses.

See our section on using your equity line a bank to fund college expenses:
using your home equity like a bank

Use the Banker Line of Credit (BLOC) to manage your money and education expenses.

The BLOC has been designed to effectively pay education expenses with minimal borrowing costs. The programs works for applicants who have steady working income.

For a demonstration of the program:
see introduction and slide demo