Now that home equity lines are more difficult to take out, college students are looking to other ways to make tuition payments. Mercury News reports:

“The bursting housing bubble and tighter lending requirements makes it harder for parents to rely on home equity to foot tuition bills.“A lot of upper-income families, particularly in the Bay Area, used to rely on vehicles like home-equity loans or lines of credit,” said Karen Cooper, director of financial aid at Stanford University. “We’re seeing a lot more families apply for financial aid, and more parents are taking out private loans.”

Unfortunately, private loans also seem to be drying up. Since the beginning of the year, over a dozen private college lenders have ceased operation. The good news is that federally subsidized loans are still available to those who qualify. Students and their families will have to figure out how to make up the difference without a HELOC.

See Also:

Avoid Using Your Home Equity Line to Fund College

5 Financially Sound Ways to Use Your Home Equity Line of Credit

Tags | Heloc, home equity line of credit, motgage crisis