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Not Saved Enough To Pay For Your Kids College Should You Tap Your Pension Or House

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http://www.nytimes.com/2013/12/01/realestate/college-on-the-house.html?ref=business&_r=0

Parents who want to pay for their children’s college education but haven’t saved enough may consider tapping into either their home equity or their retirement accounts. Which is the smarter way to go?

“In an ideal world, you would not need to do either,” said Ann Minnium, the principal at Concierge Financial Planning in Scotch Plains, N.J.

And the truth is, only 5 percent of families use home-equity lines, retirement accounts and other forms of parent credit to help pay for college, according to an annual survey of families with undergraduates by Sallie Mae, the nation’s largest private student lender. Grants and scholarships are the most common funding source. Some 65 percent of families of college students rely on them, up from 50 percent five years ago, according to Sallie Mae.

If alternative sources aren’t enough, however, Ms. Minnium said, “the home equity is less bad than the retirement.”

Coming to the UK soon! Although some have been doing this for private school for years...

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