Many families find themselves too wealthy to qualify for financial aid, but are too strapped to pay out-of-pocket for college education. This is how federal financial aid works since it is needs based. So what to do? What are your options?
Well, first don't rush and empty your retirement savings or emergency funds (if you have any). Protect what you have. Your child can always take out an unsubsidized student loan. Did you know that Direct Unsubsidized Loans are available to undergraduate and graduate students and there is no requirement to demonstrate financial need? Read more about it here.
Nevertheless, if you still want to help pay for your child’s tuition, the standard advice calls for two options: Get a student loan for parents or tap your home’s equity, if you have any.