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 | | | | | | | Try borrowing from an innovative Loan Program. | |
| Wednesday, November 19, 2008 09:31:22 | | Author: David, Jr. Hodgkins |
| Before you look into any type of loan programs, do your best to qualify for federally subsidized loans, which are INTEREST-FREE and PRINCIPAL FREE until your child graduates. If you still need to borrow more money, try borrowing from your 401k plan or a pension plan. Many plans will allow you to borrow up to 50% of the value of the plan or up to $50,000 INTEREST-FREE. You should also think about taking out a home equity loan instead of a commercial loan since ALL of your interest payments will be TAX DEDUCTIBLE. We would rather not see anyone take away from their 401k because you’ll need that money someday soon, so use that as a last resort. Also, don’t put in over what the company will match. If you are, whatever percentage you are contributing over could be invested more wisely in an annuity with a guaranteed rate of return, or you could use the extra contribution to pay for some college costs for your child, such as… spending money, food, clothing or linens for the dorm room. Consider all of your options before making any hasty decisions about loans. | |
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| | (Last Update Date : 07/20/2009 09:32 AM) |
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