From a traditional standpoint, we have borrowed to get practically everything you could imagine, only to pay back with interest among other things! This has quickly become a way of life worldwide and has not shown any signs of changing anytime soon.
However, what about the concept of utilizing a home equity loan for college education purposes? Well, there are some investments you point this money towards that is better than others, but is this one of them? It really depends on your ability to repay without getting too damaged financially in the meantime.
From a dollar for dollar standpoint, home improvements and debt consolidation is a seemingly better investment but lets examine what a college education can also do as compared. A four year degree can net many individuals an average of $30-60,000 annually without much difficulty and additional education can yield much more without a doubt.
Compare this to the decent return you can get on home improvement projects such as landscaping or kitchen remodeling and the education can supersede it just after a couple of years. However, most people who pay for education with an equity loan are not the home owner but the parents of a child who has lived in that home.
That said, when buying someone else’s education as opposed to your own with a home equity loan, you can see that there is virtually no return on your investment from a financial standpoint! Therefore, this gift (albeit extremely important) will further encumber the borrower; but can still be very affordable for the right family, provided it doesn’t hurt their liquidity or savings.
When you fully consider the upside as opposed to the downside for yours or someone else’s college education is when you are in prime position to ‘pull the trigger’ or pass. Make certain you evaluate your scenario and cash limitations prior to signing any agreements, but in the meantime, allow yourself to receive free offers from lenders online so you can ‘crunch the numbers’ for yourself!
Are you looking for free offers from prominent home equity loan lenders online for a college education? Go to http://home-equity-loan.valueprep.com and view the most reputable available to any prospective borrower!