Home Equity LoC vs. Direct Unsubsidized Loans and Plus Loans

[Anonymous]

Dd is eligible for a Direct Unsubsidized student loan and we can supplement that with the parent Plus loans to pay for college. However, we also own a second house where an elderly relative lives that has a home equity line of credit attached to it. Our basic plan is to borrow to pay for dd's college education and when our relative no longer has need of the house to sell it and pay off the loans. The HELOC has a variable interest rate, somewhere around 5% while the direct student loan is at 6.8% and the Plus loan I think is slightly higher. Dh wants to consider financing everything through the HELOC because it's currently a cheaper interest rate. I'm inclined to think that dd should at least get the Direct Unsubsidized Loan (don't have to pay principal until graduating) and want to consider the Plus loans for the rest (you have to pay on principal and interest right away on this one). While the interest rate is higher, it's always possible the HELOC rate could go up and I don't like tying up the equity of the house - especially because one never knows what is going to happen with the market these days.

Has anyone had to decide between student loans and a HELOC? What did you decide to do and why?

[Anonymous]

Do not borrow against the house in any form of a loan.. Get student loans, get grants etc,

[Anonymous]

How much in debt are you talking about?