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Option 1: Use Your BLOC to Pay All Expenses

Use the BLOC to Pay Everything

Parents can use the BLOC to pay all college expenses such as tuition, room and board, books, class fees, computer and all other related expenses minus the financial aid the student receives. You simply borrow money from the BLOC as needed (up to your credit line balance).


  1. student and parent estimates
    how much money will be needed for the academic year. Use this budgeting worksheet to estimate available aid and costs:

    download college budgeting worksheet

  2. student and parent use pre-paid credit cards
    to manage monthly spend. Pre-paid's set limits on the amount spent each month. You can use the BLOC to load up monthly amounts based on the college budget:

    view how pre-paid cards can work

  3. parent accesses their BLOC
    to pay educational expenses. Parent uses money management techniques to pay down the borrowed amount

    jump to slide show to view how program works

  • your BLOC functions like a bank when you need funds
  • no additional debt to assume
  • borrow money only as needed

    your BLOC account may look like this if you had the following spending plan:

    • net monthly income: $5,000
    • monthly living expenses: $4,000
    • monthly discretionary income: $1,000

    note: this is an example of a payment plan used for this illustration. Individual financial circumstances may be different

BLOC Account
Starting Credit Line Balance: $60,000




Advance from BLOC

Payment to BLOC

Balance Owned
Aug Beginning Balance Year 1   $0

Pay Tuition-Fees

$4,000   $4,000

Pay Housing

$3,500   $7,500

Pay Computer

$1,500   $9.000

Pay Supplies

$500   $9,500

Pay Travel To

$500   $10,000
Aug BLOC Living Expenses $4000   $14,000
Aug Pay Paychecks   $5000 $9,000
Total BLOC   $14,000 $5,000 $9,000
Sep Beginning Balance     $9,000
Sep BLOC Pay Books $600   $9,600
Sep BLOC Misc. College $200   $9,800
Sep BLOC Living Expenses $4,000   $13,800
Sep BLOC Paychecks   $5,000 $8,800
Total BLOC   $4,800 $5,000 $8,800
Oct Beginning Balance     $8,800
Oct BLOC Misc. College $200   $9,000
Oct BLOC Living Expenses $4,000   $13,000
Oct BLOC Paychecks   $5,000 $8,000
Total BLOC   $4,200 $5,000 $8,000
Nov Beginning Balance     $8,000
Nov BLOC Misc. College $150   $8,150
Nov BLOC Living Expenses $4,000   $12,150
Nov BLOC Paychecks   $5,000 $7,150
Total BLOC   $4,150 $5,000 $7,150
Dec Beginning Balance     $7,150
Dec BLOC Misc. College $100   $7,250
Dec BLOC Travel Home $350   $7,600
Dec BLOC Living Expenses $4,000   $11,600
Dec BLOC Paychecks   $5,000 $6,600
Total BLOC   $4,450 $5,000 $6,600
Jan Total Activity w/ College $4100 $5000 $5,700
Feb Total Activity $4150 $5000 $4,850
Mar Total Activity $4200 $5000 $4,050
Apr Total Activity $4100 $5000 $3,150
May Total Activity $4500 $5000 $2,650
Jun Total Activity $4000 $5000 $1,650
Jul Total Activity $4000 $5000 $650
Total BLOC   $29,050 $35,000 $650
Aug Beginning Balance Year 2   $650

Pay Tuition

$3,500   $4,150

Pay Housing

$3,700   $7,850

Pay Supplies

$600   $8,450

Pay Travel

$500   $8,950
Aug BLOC Living Expenses $4000   $12,950
Aug Pay Paychecks   $5000 $7,950
Total BLOC   $12,300 $5,000 $7,950

What Does This Show

  Year 1  
  Opening Credit Line Balance $0
  Paid College Startup Costs - $7,500
  Paid Computer for Use -$1,500
  Paid for Supplies and Books -$1,100
  Paid for Travel To and From -$1,250
  Paid for Monthly Spends -$1,300
  Pay Living Expenses - $48,000
  Balance Owned - $60,650
  Deposit Income Payments + $60,000
  Ending Balance Owned - $650

  • college startup costs include tuition, room and board, lab fees, and other annual costs minus financial aid awards given to the student
  • monthly spends were budgeted money for student use
  • living expenses include mortgage payment, food, family care and other living expenses

  • your starting balance was $0
  • you borrowed $60,650 from the BLOC
  • you made payments of $60,000 into the BLOC
  • your ending balance was $650

  • you never made a schedule payment to the BLOC:
    your income represented your monthly payment
  • you will only pay interest on the average daily balance

Where to Next

  • View Option 2:
    view the 2nd option to determine if this plan meets your financing objectives: go to college funding option 2

  • Next Step:
    use this 10-step success plan for implementing and managing your BLOC: view 10-step success plan

  • Last Step:
    see how the BLOC can be used to payoff your mortgage loan FAST: view mortgage payoff plan

    Important Note:
    Never Let Your BLOC Move Into Negative Territory

    Your BLOC should not drop below a zero balance. This is money that you are giving away to the banks. You should use your BLOC to payoff your mortgage whenever your BLOC balance reaches zero

Home Equity Application

BANK EQUITY for Student Aid