The Real Deal Miami

Home equity no longer available for tuition

April 10, 2009 05:09PM

As home values have fallen, it has become harder for homeowners to take out home equity lines to pay for their children’s college tuition. Fewer banks are willing to give second mortgages, another common method of tuition payment, when applicants have imperfect credit or work in industries where bonuses are a large part of the pay. Parents who do still have equity in their homes have become nervous about using it for tuition payments in this economy.