How Homeowners Can Use HELOCs to Pay for Education

Education costs never stop. From preschool to grad school, the bills keep coming. But as a homeowner, you have a secret weapon: your home equity. A home equity line of credit (HELOC) can help you tackle education expenses with lower rates and more flexibility than traditional loans. Here's how to make it work for you.

What Is a Home Equity Line of Credit?

A home equity line of credit, or HELOC, is a revolving line of credit that lets you borrow against the equity in your home. That means you can access funds based on the portion of your home you have already paid off, using your property as collateral for the loan.

Unlike a traditional loan, you don’t receive a lump sum. Instead, you are approved for a maximum credit limit, and you can borrow AS MUCH or AS LITTLE as you need during the “draw period” (usually 5 to 10 years). Many HELOCs even offer interest-only payments during this time, which keeps your monthly costs lower. Then, once the draw period ends, you move into the “repayment period,” where you pay back the principal and interest.

HELOCs are ideal for both long-term and short-term financial needs—like education.

Why Use a HELOC for Education?

There are many ways to pay for education, but not all options offer the same convenience or affordability. Here’s why home equity lines of credit make sense:

• Lower Interest Rates: Compared to private student loans or payday loans, HELOC rates are generally lower—especially if you have good credit and strong home equity.
• Flexible Use of Funds: HELOCs aren’t limited to tuition. You can use them for books, housing, or even transportation.
• You Only Borrow What You Need: Unlike traditional installment loans, you don’t have to take the full amount upfront, giving you more control over your debt. This means you borrow whenever you need without reapplying for a loan each time.
• Bridge Financial Gaps: A HELOC can help cover short-term funding gaps—like when school payments are due before financial aid arrives, or when unexpected education-related costs pop up mid-semester.
• Education Pays Off: Investing in education today may lead to scholarships and more financial opportunities later, notably in college. This could potentially save you thousands in future education costs.

Ultimately, home equity lines of credit give you the freedom to manage educational costs on your own terms.

How to Pay for Education with a HELOC

Your HELOC can be used for a variety of education-related expenses—whether you are supporting your child's learning journey or investing in your own. Let’s take a closer look at how a HELOC makes education more affordable:

1. Early Childhood Education & Childcare

If you have young kids in your family, you know how quickly childcare costs add up. Monthly preschool tuition, daycare fees, and before- or after-school programs can stretch any family budget. A HELOC loan helps cover these ongoing expenses PLUS those extras like music lessons, language classes, or camps. It's especially useful for those unpredictable costs that come with finding last-minute care or enrolling in seasonal programs.

2. K–12 Schooling & Private Education

Private school enrollment and paid programs are a major monthly expense, but a home equity line of credit loan makes it more manageable. Beyond basic enrollment costs, the funds can handle all those add-on expenses like uniforms, sports fees, music programs, etc. In addition, families with kids attending public school frequently use HELOCs to pay for specialized programs, giving their children an academic edge.

3. Tutoring & Academic Support

Personalized tutoring, test prep, and summer school can help students stay on track—or get ahead. From math tutoring for your middle schooler to SAT prep for your teen, your HELOC covers the cost of academic support without dipping into your savings or emergency fund.

4. College Tuition & Campus Life

Whether you are sending your teenager off to college or heading back to school yourself, higher education comes with major expenses. In addition to tuition, we’re talking about enrollment fees, room and board, textbooks, and so much more. A HELOC offers a flexible way to bridge the gap between scholarships, financial aid, and remaining costs. Plus, you can use it for one-time needs—like a new laptop—or recurring costs like rent and groceries for students living off campus.

5. Continuing Education & Career Training

Want to invest in your own education? A HELOC can handle the cost of learning certifications, taking evening classes, or a full career change. The best part? You can even cover childcare expenses while you attend classes, so you are free to focus on your coursework instead of coordinating carpools during one of your lectures.

Get a HELOC from Academy Bank

Don’t let costs hold you back! A HELOC gives homeowners a smart way to afford education at every stage—from preschool to grad school.

At Academy Bank, we understand that educational expenses can change over time. That’s why our home equity lines of credit are designed to be flexible, affordable, and easy to access.

Here’s what makes Academy Bank the best HELOC lender:

• Personalized Lending Terms: Academy Bank works with you to set up terms that fit your life and financial standing.
• Top HELOC Interest Rates: Our competitive rates keep more money in your pocket—because education is expensive enough already!
• Real People, Real Help: Our lending experts will guide you through the whole process—no confusing jargon or frustrating runaround!
• Tools that Work: Learn how much you are eligible to receive with a HELOC Qualifier Calculator, and also use our HELOC Payment Calculator to map out your strategy

Ready to turn your home equity into educational funding? Contact Academy Bank today to learn more about our HELOC options.

Apply for HELOC

Not sure if a HELOC is the right fit? You can also explore our personal loan and cash-out refinance options to find what works best.