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Hi there!

Brainstormed an idea and wanted some Foolish input:


Wife: Totally supported me getting my BS and MBA currently in a dead end low paying job (18K/yr) with 1.5 years of school under her belt and now will return to school this semester at Community college and then transfer to State school for two years and get BS in Education to teach in CT.

Me(Husband): Will continue to work and figure out how to pay for the next 2.5 years.

Here's my idea I request input on:

We do not have any extra cash for education:

Open a 529 plan and fund with a HELOC (7%) to save 5% state Tax and also get mortgage interest deduction and then pay for school with 529 plan and pay interest on money borrowed HELOC.

HELOC Rate - 7% (Gross) equates to 5.25% (Net) effective minus the 5% state equals 5.25 - 5 = .25% rate virtually interest free money.

Does this idea make sense?

Also can I claim a Hope credit or Higher education expenses credit?

Any help is appreciated or other ideas?
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