<p>I'll be attending a private school this fall and my parents and I are now facing the looming loan decision. From your past experience, is it better to take out one big loan in the beginning to cover all 4 years, or to take out a new loan each year just for that one school year?
I'd appreciate any help!</p>
<p>The answer depends on your situation. Most people take out loans year to year. You are paying interest on the loans from the time you get them, so why pay for amounts you won’t need for 3 years. You also can’t be sure where you are going to be and what you will need in that time. Also, if you are going through government or school channels, they will limit you to the COA of one year. </p>
<p>But if you get a great deal on a loan, such as a super low HELOC rate and you want to make sure it isn’t pulled out from under you, you might take out 4 years worth and stash it to use. Around here some banks started capping and canceling HELOCs as they got nervous with all of the foreclosures. Some who got word of this immediately borrowed what they could before they were slapped with this action.</p>
<p>Thank you so much, that’s really helped us get a second opinion that we needed. It’s helped us out, already. :)</p>