Alternatives to education loans include home equity loans, home equity lines of credit, credit cards, and personal loans.

Home equity loans typically have fixed interest rates while home equity lines of credit (HELOC) typically have variable interest rates. Another difference is one only pays interest on the portion of a home equity line of credit that is actually used. A potential benefit of a home equity loan or line of credit is the interest may be tax deductible. Look at web sites like Bankrate.com for information about home equity loans and lines of credit.

Credit cards usually have much higher interest rates than home equity loans and lines of credit. If the school does not accept credit cards, one will have to use a cash advance to make the payment. Cash advances often have even higher interest rates. Most credit cards use variable interest rates.

Personal loans are available from your local bank. These are unsecured installment loans and are only available to creditworthy borrowers. The best interest rates are available to borrowers with excellent credit, and are slightly lower than the best credit card interest rates. Personal loans may be available with fixed or variable rates, depending on the bank.

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"Education - lifelong education for everyone - from toddlers to workers well advanced in their careers - is indeed an excellent investment for individuals and society as a whole."
- Ben Bernanke, 2007

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