Lastest blog entry from Shawn B.

I was checking my bank account online and I saw an ad that worried me. It seems that the bank was offering home equity loans, which is not in the least bit shocking. But I was shocked when the ad suggested using home equity to pay for college This worries me for many reasons. The big one is the fact that it is feasible and makes sense. Alternative loans are decreasing in availability. Student loan and aid limits are too low. Tuition and other costs are rising. Here is a good source of funding. But with the public loan market struggling, what would happen if the equity loan could not be paid? I would feel very guilty if a home were in danger because I needed money.

This is just as bad as paying for school with a credit card, something that I had to do. My aid was low and even maxed loans were not enough to pay the college bill. Once I put the big bills on the card, little stuff was easy. The amount owed became almost impossible to afford, and in the end, I had to file chapter 7.

How do these issues relate? Well, the money has to be paid back now, not later. And the money is probably not all school related, so there is more necessity to pay it. Not everyone can pay it now. I am just glad that, once I reached the age when I was not a dependent, my aid rose enough to pay for all school bills. But I know that this luck is not shared. And a part-time job does not always pay that much and may not be enough to pay credit card or equity debts.