College financial aid offices can provide information about state-funded loan programs. Avoiding tuition hikes . Some colleges are guaranteeing they will not increase tuition costs from year to year if students pay an up front charge. Before paying the fee, calculate the college's average tuition hike over the last few years to make sure you'll come out ahead. Using home equity .
Homeowners can borrow from their home equity to pay for college.
The interest paid on home equity loans may be tax deductible, but watch out for high loan fees. Homeowners who may have trouble meeting the payments are advised to avoid a home equity loan because they could lose their home. Introducing Hope Scholarships . The 1997 Taxpayer Relief Act introduced the Hope Scholarship tax credit. See a tax advisor for more details.