Investment Account Line Of Credit (Margin Loan)
• Interest only payments make this much easier on monthly cash flow.
• Allows parents to leverage non-qualified investments without having to liquidate, pay taxes and draw down funds earmarked for retirement.
Intra-Family Loan
• Reasonable interest rates and payment terms can make this an attractive option.
• Provides a classic “win-win” in terms of interest earned by the lending family member and less administrative qualification compared to financial institutions.
Private Student Loan
• Usually at a higher interest rate than the Federal loan.
• Requires a parent to co-sign (not required for the Federal student loan).
• Will have a structured repayment program.