Employer-sponsored retirement plan loans. Some retirement plans, such as 401(k) and 403(b) plans, allow you to borrow a portion of your vested balance for your child’s college education. Each plan has its own repayment terms, loan limits, and other restrictions, so check with your employer for specifics. Note that if you quit or get laid off with a loan outstanding, you’ll generally have to repay it quickly. Otherwise, the IRS will consider it a withdrawal, and you’ll owe regular income taxes, and if you’re under age 59 ½, a 10% early-withdrawal penalty.

Home-equity loans. If you’re a homeowner, another option may be a home-equity loan, which allows you to use the equity in your home as collateral to borrow money. You can borrow a lump sum, which you repay in monthly installments over a set period, or you can borrow money as you need it from an established line of credit, paying interest only on the money you actually use. Interest may be fixed or variable, and is generally tax deductible up to $100,000. Since you’re putting your home on the line, only borrow an amount you’re certain you can repay, and get serious about repaying the loan as soon as possible.

Cash-value life insurance policy loans. Cash value life insurance, including whole life, universal life, and variable universal life, allows you to borrow against your built-up cash value, generally at favorable rates. While your loan is outstanding, the policy’s death benefit remains in effect, but it’s reduced by the unpaid loan balance. So bear in mind that in the event of your death, your beneficiary will receive a reduced death benefit.

Retirement IRAs. When you make early withdrawals for qualified higher education expenses from either a traditional IRA or Roth IRA, the 10% penalty that is usually imposed when you make withdrawals before age 59 ½ is waived. Qualified higher education expenses include tuition, fees, books, supplies, and equipment required for attendance at an eligible educational institution. Room and board also qualify if a student is enrolled at least half time.

Before you consider your IRA as a source of college funds however, make sure you understand all the consequences. For traditional IRAs, early withdrawals will escape the 10% tax penalty when you use the money for qualified higher education expenses. But you’ll still owe regular income taxes on any deductible contributions you made and on your accumulated earnings.

For Roth IRAs, you can make withdrawals for any reason up to the amount of your original contributions without owing federal income taxes or penalties. However, if you withdraw any earnings for qualified education expenses before the account has been open for at least five years and before you’re age 59 ½, the 10% penalty is waived, but you’ll owe income taxes on money that would have eventually been free from federal taxes had you left it invested.