Plus loans vs home equity/mortgage loans

notrichenough
Wed, 28 Apr 2010 14:40:56 +0000

If anything happens to the borrower or the student, it ends.

You can hedge this scenario by buying a 10-year level-premium term life policy, for $100K probably costs less than $200/year.

To pay thousands or 10’s of thousands extra in interest on the slim chance of death does not seem like a good investment to me.

I don’t think nkl811 will be tapping all their equity either (or even close), since their house is almost paid off.

Everyone’s situation is different of course, so you have to do what is best for you, but it this case using house equity to finance their kid’s education seems very reasonable.