Thanks to the skyrocketing cost of tuition, many Americans have taken to searching the couch cushions to find the money to afford the high cost of college. As a result, more and more consumers are turning to the homes in which these couches are placed to finance a college education.

Tapping your home equity with a 2nd mortgage

A 2nd mortgage can provide the means for you to finance the college of your child's dreams. Whether in the form of a home equity line of credit (HELOC), or a fixed-rate home equity loan, both options can provide you with access to cash.

• 2nd Mortgage

A HELOC is distinguished from other second mortgages by the fact that it's structured as a line of credit. As a result, it's more flexible. It could be the right choice for you if you just want to borrow a little money at a time. It does have a variable interest rate, but HELOCs have rate caps to prevent your payments from going through the roof.

• HELOCs
• HELOC for College Tuition

You could also choose a home equity loan. Generally, these enable you to borrow the money you need in a lump sum, and pay a fixed rate of interest.

• Home Equity Loans

Stay within your budget

As a parent, you need to set limits on how much you borrow. As tempting as it may be to send your kids to the finest academic institutions, you need to stay in fiscal reality. The rule of thumb is to avoid spending more than 35 percent of your take-home pay on debt. This way, you'll always have a little wiggle room for any unexpected expenses looming down the road.

You also need to be careful not to tap more than 80 percent of your home's value. If you do, you'll pay a higher interest rate on the second mortgage loan, and have no source of emergency funds.

The ultimate guideline for how much you borrow is your heart. If you feel that borrowing money to pay for a better education is extremely important, it's your choice to exceed the recommended debt limits.

In any case, using a 2nd mortgage may be the most economical way to help you afford a monster tuition expense.