Using Home Equity for College Tuition in Oct 2021

Evade Student Debt by Using Home Equity to Pay For College: Here’s the Secret

The Cost of University & College Fees in the UK Is Now More Expensive Than Ever. If You're Wondering How You Can Make Equity Release Pay for Your Education Without Having a Negative Impact on Your Retirement Fund Then Keep Reading.

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College Education

You Can Pay For College with Equity Release: Here’s How

Most of us go to college for 4 years, and then we graduate and start our careers. But what happens if you have spent years slugging away in a boring position, and it’s time for a career change before you retire?

It’s never too late!

In addition, you might have children or grandchildren who dream of top-quality education. The cost of education can be overwhelming, but equity release can help make this dream a reality.

Equity release allows homeowners over 55 to unlock cash tied up in your home to use as you wish.

This can include paying for further education or college tuition for you or your family. Let’s find out how you can make that happen!


How Much Will Further Education Cost You?

A fully funded college education will cost between £20,000 and £30,000 per year for the duration of your studies. This can range from 3 to 6 years, depending on the course of your choice.

This can be expensive even without considering equity release, so it’s important not to underestimate how much you’ll need to save.

These days, there is a myriad of online short courses available that will allow you to shift in a new direction. These are an inexpensive alternative to a college education.

Equity release can be a good way of paying off all these costs, which is not only cheaper in the long run but also provides you with financial security, especially if your parents are no longer around to support you financially or provide equity in their home.

Equity release gives you or your family the option to pursue higher education past your GCSEs1.

Equity Release Options

4 Equity Release Plans for Tertiary Education

£250,000 Mortgage Equity Withdrawal Plan (MEWP)

This is a flexible loan product with the ability to repay early without penalty2 or interest charges. This can be paid off in full by the time your son goes to college when you’ve saved up enough money and don’t need equity release.

£400,000 Equity Withdrawal plan Plus (EWP+)

This is a more flexible3 product with the ability to withdraw equity in stages until you reach your target amount of funds. This can also be paid off early without penalty or interest charges, and so it’s often used when children are older than university age for equity release.

Equity Release Plan Plus (ERP+)

This is the same as an EWP+, but with a guaranteed annuity4 from day one to provide you, or your loved ones, with income for life. This can be used when children are older than university age, and so it’s often used when equity release is required over a longer period of time.

Equity Release Plan (ERP)

This is an equity withdrawal plan without the annuity, so it’s often used when children are younger than university age for equity release.

Common Questions

How Can Equity Release Help Me Pay for College or Further Education?

What Equity Release Plan Should I Go For?

What Equity Release Plans Don't Have a Fixed End Date?

In Conclusion

Whether it’s for yourself or a loved one, education is one of the best gifts that you can give someone. A world-class education can catapult you towards the success that you have always dreamed of.

Therefore, one should never stint on education, and equity release might just be the way for you to achieve this goal.

Speak to your independent financial adviser today to learn if equity release is the best option for you and your family. In addition, you might want to look at the pros and cons of equity release before making your final decision.

Editorial Note: This content has been independently collected by the SovereignBoss advisor team and is offered on a non-advised basis. Sovereignboss may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations.

Contributors: Nicola Date, Katherine Read
Reviewed by Francis Hui

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Written by
Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.
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Written by
John Lawson
Founder SovereignBoss

John is passionate about education and has made it his life-long mission to assist UK citizens on their future financial options, with a specialist interest in equity release, and SovereignBoss is the natural extension of this passion.

Written by
Francis Hui
Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
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Written by
Katherine Read
Financial Planning Reporter

Since joining the editorial team at SovereignBoss, Katherine has become focused on bringing transparency to finances and opportunities for those approaching retirement age. She writes on the topics of equity release, home reversion, and mortgages.

Written by
Nicola Date
Writer & Journalist

Nicola is a financial writer for SovereignBoss and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.

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