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Question of the Week

Posted: Jun 30, 2022 | Author: Cornerstone League
CFPB  HELOC  lending & collections  Reg Z  student lending 

Question: Can a person take out a HELOC for educational purposes?

Answer: Yes, but the loan would not be classified as a private education loan requiring additional disclosures. This is because 12 CFR 1026.46 in Regulation Z exempts certain loans from the definition of private education loan, stating that the definition “does not include open-end credit or any loan that is secured by real property or a dwelling…”

https://www.consumerfinance.gov/rules-policy/regulations/1026/46/

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