By Kate Wood | NerdWallet

Proud of your new high school graduate but still wondering how you’ll pay for college? If you’re a homeowner, you might be eying your home equity, the current value of your home minus the amount still owed on your mortgage.

College tuition has been on the rise, but so have home values, and in March 2024 real estate data provider ICE Mortgage Technology estimated that American homeowners are sitting atop roughly $11 trillion dollars in tappable equity.

A home equity line of credit, or HELOC, is one way to turn that equity into usable funds. Because a HELOC is a second mortgage, your primary home loan’s interest rate — which for a majority of homeowners is well below current mortgage rates — remains intact.

So if you’re trying to figure out how you’re going to come up with cash for those tuition bills before back-to-school season, should you consider a HELOC? Before you decide, weigh the possible benefits against the drawbacks — including a huge one — and review all your options.

Why equity borrowing is tempting

HELOC benefits go beyond keeping your current mortgage interest rate. For one, a HELOC may enable you to borrow a sizable sum. Lenders will usually let well-qualified homeowners borrow up to 80% of their home equity.

For example, say you have a $350,000 home and you still owe $150,000 on the mortgage. That means you have $200,000 in equity and could get a HELOC that goes up to $160,000. In contrast, with a federal Parent PLUS loan, you’re limited to exactly what’s needed: your student’s school-determined cost of attendance minus any other assistance they receive.

And because you aren’t required to use the money for educational expenses, as you are with federal student loans, you could use cash from a HELOC for other necessary expenses.

With a HELOC, you don’t take out all the money at once. Instead, you borrow from the line of credit as needed during what’s known as the draw period. You could borrow as the bills come in, and it may be easier to roll with unexpected costs, like a summer study abroad program.

Interest rates on Parent PLUS loans hit a record high for the 2024-2025 school year, and private student loan interest rates may also be in the 8% to 9% range, if not higher.

“Since interest rates are comparable, it may be a better fit to pursue a HELOC,” Noah Damsky, a chartered financial analyst at Marina Wealth Advisors in Los Angeles, said in an email. But, Damsky emphasized, “Parents need to evaluate alternatives to borrowing against their homes.”

Risks and drawbacks

Failure to repay any loan against your home, including a HELOC, can result in foreclosure.

“While the interest rates might be competitive or even better than a private student loan or a Parent Plus loan, the ramifications of something going wrong [are] far too great,” says certified financial planner Nick Marino, CEO of Breakaway Wealth Planning in Columbus, Ohio. Think through the risk, he advises. “You have kids at college, but they don’t have a home to go back to. Was it worth it?”

Second mortgages are not the fastest or easiest way to get cash. HELOC borrowers may wait more than a month between applying and accessing funds. You’ll benefit from shopping lenders and getting multiple rate quotes, and you’ll want your financial stats — like your credit score and debt-to-income ratio — to be in solid shape. That’s comparable to shopping for private student loans, but it’s much tougher than qualifying for a federal Parent PLUS loan. Though you’ll go through a credit check for Parent PLUS loans, there’s no minimum credit score, and borrowers may even be eligible despite previous credit challenges.

HELOCs generally have adjustable interest rates, which can make it hard to predict what your monthly loan payments will be. In contrast, with a Parent PLUS loan, you lock in the interest rate when you take out the loan. Borrowers may choose a fixed rate for private student loans, and refinancing is an option for private loans if rates drop.

How to make a smart choice

Start by taking a step back and assessing your financial needs. Prioritizing retirement savings is crucial, says Stacy Dervin, a CFP and CFA at Tailored Financial Planning in Eugene, Oregon.

“Underfunding your retirement to fund your child’s education now may only delay financial costs for your child,” Dervin said in an email. “If parents outlive their money, their adult children can end up paying for the parent’s late-in-life health care or living expenses.”

Here’s a practical guide to sorting through how to find money for college.

1. Start with the FAFSA

No matter how you think you’ll pay for college — and despite the past year’s issues — start by filling out and submitting the Free Application for Federal Student Aid, or FAFSA. This will allow you to see how much money your kid could receive from grants, programs like work-study and some scholarships, none of which have to be repaid.

2. Consider federal loans

Federal loans, whether student loans or Parent PLUS, should be considered next. Federal student loans have fixed interest rates that are set based on the year they’re originated, not your financial characteristics. That can be especially helpful for borrowers who don’t have much credit history, but federal loans are a solid choice regardless of your credit score.

3. Use private loans sparingly

Even if you think you could get a better rate elsewhere, federal loans offer borrower protections and flexible repayment options that you’re unlikely to find on a private student loan. Federal loans also may be eligible for eventual forgiveness. But if you’ve hit federal loan limits and it’s not enough, private student loans could be an option to fill those gaps.

4. Exercise caution with other financing sources, including HELOCs

If you consider the risks and decide to use a HELOC to help pay for college, take the time to run all the numbers, figuring out how much you’ll borrow and what your repayment strategy will be. HELOCs often require interest-only payments while you’re withdrawing money, but putting off paying back the principal could leave you strapped for cash when the repayment period kicks in.

Because it can’t be said enough: A HELOC is secured by your home, and failure to repay has dire consequences. Marino notes that even if a HELOC was a client’s least expensive option for education funding and they had sufficient assets to repay the HELOC at any time, “I still probably wouldn’t necessarily recommend it, but I could get more on board with it.”

Kate Wood writes for NerdWallet. Email: kwood@nerdwallet.com.

The article Should You Use a HELOC to Pay Your Kid’s College Tuition? originally appeared on NerdWallet.

Men’s testosterone levels have been declining over the last few decades, and no one knows exactly why. But South Florida doctors and researchers offer new ways to combat the problem.

When a man’s level falls below normal, his sex drive, energy levels, body hair, and muscle size are affected. Low testosterone also can be a trigger for depression.

A simple blood test  — at home or in a lab — can reveal whether testosterone levels are low.

South Florida doctors say they now have many options to raise testosterone levels: shots, gels, patches, and more recently, pills.

Pembroke Pines urologist Maury A. Jayson says he treats many patients for low testosterone. “It’s a huge health issue,” he said. Jayson advises against patches (they tear up the skin) and topical gels (they run off as men sweat in hot South Florida).

“I use mostly injections or self-injections,” he said. “There have been new formulas.”

Another newer option is pellets. “I insert testosterone pellets under the skin twice a year,” he said. Jayson said with the pellets the dosage is customizable, and the effects are long-lasting. “It’s convenient for men who are busy, and the levels stay elevated consistently over four to six months,”

Treatments for low testosterone typically have side effects: One side effect can be infertility. For older men, this may be less of a concern than for younger men who are still planning to have children.

At the University of Miami, researchers studied a nasal testosterone gel in a clinical trial. The results proved promising for younger men looking for a method to raise their testosterone levels without infertility.

The nasal gel is short-acting and doesn’t cause the body to maintain high testosterone levels throughout the day. Because it’s short-acting, it preserves the production of hormones from the pituitary gland responsible for sperm production.

“We did a trial to see whether nasal gel would maintain sperm production, and it did,” said Dr. Thomas Masterson, assistant professor of clinical urology at UM. “There was still some sperm production decline, but the overwhelming majority maintained sperm count while on that drug.”

In the last few years, the U.S. Food and Drug Administration has approved oral medications to boost testosterone — Jatenzo, Kyzatrex and Tlando. However, they have side effects that include an increase in blood pressure, and possible liver injury. “Because they are so new, our experience with these drugs is still somewhat limited,” Jayson said.

“I don’t prescribe those as much because of insurance issues,” Masterson said.

Doctors say supplements such as vitamin D, zinc and magnesium may also help to boost testosterone.

“When there is a sea of options, we want to tailor these medications to the patient,” Masterson said. “I pick and choose what may work better for each patient.”

Urologists advise looking at your health as a whole, rather than rushing to take testosterone boosters. “Low levels can be caused by other factors, including medication side effects, obstructive sleep apnea, thyroid problems or diabetes,” Masterson said.

 

Royce Lewis had no idea what Pablo López had in store when the starter told him before Thursday night’s game that somebody had to hit a home run.

But, Lewis said, “I figured it would be something cool.”

When Carlos Correa finally did go deep in the seventh inning, Lewis had a chance to see what the starter had been planning for the past few months. After Correa returned to the dugout, he was greeted López at the top step, holding a custom-made Prince-themed vest for him to slip on. It was accompanied by an inflatable guitar and a purple fedora.

It was the latest in the long line of creative and fun things that López has introduced to the clubhouse. For the veteran right-hander, introducing new ideas to help promote team bonding has become important to him as a team leader.

The 2023 season’s home run vest, now retired and behind glass in the Twins’ clubhouse, was bought by starter Pablo Lopez at a local sports store. (John Shipley / Pioneer Press)

“I’m all for doing activities for the team,” López said. “I’m all for finding things sometimes not related to baseball that can bring us closer not only as players but also as people, as friends, as brothers. I always like finding little things, little opportunities to make something cool happen.”

López was the one behind the celebration fishing vest that the Twins wore last year, heading out to a sporting goods store to purchase the vest during his free time and also providing a toy rod. Twins home run hitters wore that from May on before retiring it, sending López back to the drawing board.

He contacted a website this spring to have the Prince vest custom made, then waited. It arrived when the Twins were in the middle of the rally sausage craze, so he held off on bringing it out until Thursday, which was appropriately Prince Night at the ballpark.

Last year, López played a big role in helping plan the team’s rookie dress up, gathering knowledge about his teammates throughout the season and then thinking up costumes that would be specific to them. Earlier this season, when the team had a free night in Detroit, he hosted Bingo Night at the team hotel, planning and catering the event, which was attended by nearly the entire traveling party.

And at the beginning of the homestand, López introduced his new Wheel of Fortune. It sits in between the empty locker next to his, under a sheet when not in use. After Twins wins, it comes out. A player and pitcher of the game are identified and then play rock paper scissors for their chance at spinning the wheel. The winner then gets a prize. Chris Paddack, the first winner, took home a pair of eye massagers, which he said were “legit.”

“I think it just brings us together a little bit, closer as a group,” Paddack said.

That’s exactly what López intended when he introduced the idea.

As a young player in Miami, he was around veterans like Martín Prado, Curtis Granderson and Neil Walker, who he said helped teach him about developing winning cultures within the clubhouse. He took notes.

“Those guys were all about doing things that would involve the entire team, the entire staff, bringing everyone together,” López said. “I would sit down, participate and then just (think), ‘It’d be cool to do those things one day. It’d be cool to be that guy.’ ”

The Twins (40-32) have won five straight, and 7 of 9 overall, heading into a three-game series against Tampa Bay (34-38) starting Tuesday night at Target Field.

It’s no surprise to manager Rocco Baldelli that López has become that guy within the Twins’ clubhouse. He’s both thoughtful and organized, Baldelli said, and in a lot of ways “he’s like the team director.”

“He’s a guy that gets ahead of it all and then executes, just like he does on the mound,” Baldelli said. “That’s kind of the way he approaches stuff off the field, too. … There’s nothing shocking about Pablo López taking the time to set something up that he thinks is going to be fun and help the group and be a blast. He’s a good party planner.”

And his efforts certainly don’t go unnoticed.

Within the clubhouse, his teammates appreciate him for not just for what he does on the mound, but for what he does off it.

“He’s a special human being,” Correa said. “The fact that he goes out of his way to bring the team together means so much. You need guys that not only pitch well, but also bring the team together. He’s definitely one of those.”

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St. Paul city planners are considering further restrictions on fast food drive-thrus, which critics say make neighborhoods more hostile to pedestrians and cyclists.

A city study released for public comment in March drew a wide range of reactions. Proposed zoning amendments would limit where future drive-thrus can be installed while also heightening design standards.

Among the questions pitched to the public: Should St. Paul prohibit future fast food drive-thrus altogether? Or perhaps the city could just ban them downtown and in mixed housing and retail “T2 traditional neighborhood” zoning districts, with the goal of promoting walking over driving in mixed-use areas.

Those options, still being considered by the St. Paul Planning Commission, are opposed by the St. Paul Area Chamber of Commerce and Hospitality Minnesota, the state’s lodging and restaurant association, as well as individual restaurant owners. During a June 7 hearing before the Planning Commission, a representative of Border Foods, which operates almost every Taco Bell in the state, said drive-thrus account for up to 80% of their business.

Some retailers say that given crime and safety concerns, the alternative to a late-night or all-night drive-thru isn’t a more pedestrian-friendly, walk-in experience — it’s to add parking and close their fast-food eatery earlier.

They also recalled that drive-thrus were integral to surviving the coronavirus pandemic, when the state imposed restrictions on on-site dining.

“The reason I’m sitting here today and still in business is because of the carry-out business I had,” said Eddie Sharif, a proprietor of Burger Moe’s on West Seventh Street, addressing the Planning Commission.

In order to encourage business growth, real estate attorney Brian Alton said, “just like we’ve done with housing choices, we should be less restrictive, not more restrictive.”

St. Paul already limits new drive-thrus by requiring eateries in most zoning districts to seek city approval, through a conditional use permit.

Bill Lindeke, a former planning commissioner, said what makes retail areas like Snelling-Selby and Grand Avenue distinct from the suburbs is pedestrian access between bakeries, coffee shops and other retailers. Once a drive-thru business is installed, it bisects pedestrian foot traffic, he said.

“It almost becomes an island,” he said, recalling a drive-thru that created infamous traffic backups from a Selby Avenue Starbucks into the busy intersection at Snelling Avenue. Former Minnesota Senate Majority Leader Amy Koch required wrist surgery in October 2019 after getting hit by an SUV outside the location. After years of controversies, the drive-thru was replaced with a patio.

Some business advocates argue drive-thrus benefit the disabled, as well as parents with small children and others with mobility challenges. Lindeke argues just the opposite. “Drive-thru curb cuts, once cars start going over the sidewalks with snow and ice, it’s almost impossible to get the ice off the sidewalk,” he said. “It becomes the slipperiest part of anyone’s trek.”

Planning Commissioner Simon Taghioff echoed that sentiment. “I am a young parent,” he said. “I often hear in these debates young parents co-opted into this assumption that we can’t walk. … In Manhattan, they seem to have a bunch of Taco Bells and other fast food joints. And none of them have drive-thrus. I wonder how those operate?”

Minneapolis in 2019 banned new drive-thrus, calling them unfriendly to pedestrians and the environment.

St. Paul officials counted 77 drive-thrus in the city, mainly at restaurants and banks but also several pharmacies and two coffee shops.

The Planning Commission is likely to revisit the drive-thru zoning study this summer before the issue goes before the St. Paul City Council around August.

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