Reply to Cashing out home equity to pay for college

Forum Index » College and University Discussion

Reply to "Cashing out home equity to pay for college"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote]OP -- no. You must not use your home equity or savings to pay for your daughter's college.[/quote] 
Not borrowing from home equity, which is a loan against an asset is one thing.  But not using any [i]savings[/i] to pay for college?  Really??  Colleges do expect something to come from savings (and indeed there are special savings accounts for the purpose of college).  Financing college entirely out of income is not typically enough.[/quote]

I meant retirement savings.  Don't take a loan against or cash out your retirement savings.

OP is a single mom with no college degree who is only recently making $100,000/year.   I'm assuming that she doesn't have any college savings specifically earmarked such as a 529 fund for her child or she would have mentioned that.  I'm also assuming that she doesn't have a big pot of cash sitting around as "savings" or she would have mentioned that instead of pulling from home equity.  Unless OP's retirement is on track, that is what she should be focusing on.

Yes, it is not typically possible to finance college entirely from a $100,000 income which is why OP's daughter now needs to take a gap year and think creatively.  A college education is possible for OP's daughter but it should not come from OP's home equity or retirment savings.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics