Finally, as for the HELOC, you might want to look at the rates on Stafford loans right now. Last I checked, Stafford rates were lower than for HELOC's, and you don't have to stake your home on it. If your income levels allow, Junior might get a subsidized loan, so that s/he isn't accruing interest while in school. The kid will be responsible for paying after graduation, not you, and if that's too much of a pinch, there are plenty of consolidators who will be willing to lock in the interest rate and stretch the payments out for 20-30 years.

This picture will change significantly. Bush just cut 12.7 billion from the student loan program. In addition the Bush administration has been pushing to link the interest rate on students loans to the prime--effectively turning student loans into a variable interest rate loan.

And as we all know, Reagan significantly cut the Pell Grant program and limited who was eligible. Few of those cuts have been reversed.

Less grants, less loans...No Child Left Behind.

You might want to reconsider the rosy Financial Aid picture.