Home equity loans and home equity lines of credit (HELOCs) allow homeowners to tap into the value of their homes. A home equity loan is a fixed-rate, lump-sum loan that allows homeowners to borrow up to 85% of their home’s value and pay that amount back in monthly installments.

Federal student loan rates are fixed and set by a formula created by Congress that changes annually. For the 2025-2026 academic year, Direct undergraduate loans have a rate of 6.39%. Private student loan rates change more often and can be fixed or variable. Rates are based on lender preferences, personal credit and market conditions.

Jeffrey Butcher has spent years planning his financial life around his student debt.