Tapping home equity to pay for your kids' education is a reasonable move only if you've exhausted all other possibilities. Here's what you should consider long before you contemplate borrowing against your home:

Max out on student aid

Please don't feel guilty about this. They need to take on some of the cost themselves.

Besides, repayment terms for students are better than what parents can get.

If your child chooses a profession with a low salary, the Income-Based Repayment plan scheduled to take effect in mid-2009 ensures that your child's monthly student loan payment will not exceed 15 percent of his or her disposable income, and any outstanding balance after 25 years will be forgiven.

Shop for scholarships

Don't just take the word of your guidance counselor or college consultant — put your own elbow grease into looking for every possible bit of aid. Check out http://www.fastweb.com for a free database of scholarships.

Consider a less expensive route

By doing your homework, you can find plenty of public universities — as well as special programs within a school — that deliver a terrific education at a much lower cost than many private institutions. A solid public school education that doesn't leave you or your children owing six figures may be what's best for you and your family.

Start a 529 savings plan

There's no income limit on who can make use of these savings vehicles for college. Interest on invested money is tax-deferred, and withdrawals used to pay for college costs are tax-free. Parents who are on track with their retirement plans and would like to build a college fund for a young child can learn more about 529s at http://www.savingforcollege.com.

Don't stop thinking about tomorrow

- Many of us share the same problem — we don't think through how our choices might play out down the line. Be it jumping into home ownership without fully understanding the mechanics of mortgages or choosing to become a stay-at-home mom when the family income is already stretched thin, financial stress can be greatly minimized with some advance planning.

- Anticipate. Living in the moment doesn't mean that you can forget about the future. Financial security often boils down to the simple task of anticipating the consequences of your actions. The goal is to make sure that whatever choices you make today, you can handle tomorrow. If you don't have health insurance, the bottom line is that you'd better keep a lot of cash in an emergency fund to pay for life's curveballs.

- Address. If you end up in a squeeze, the worst move you can make is to do nothing. Refusing to open bills or relying on hope and a prayer to bail you out of a steep mortgage won't cut it. The more committed you are to taking action now, the better off you'll be.

- Adjust. If your finances have pushed you to the brink, it's time to step back and go in another direction. For example, I'm a huge supporter of any woman choosing to be a stay-at-home parent, but only if it makes financial sense for the family. If it doesn't, there's still no need to jump back into the workforce at 60 hours a week. Find a part-time position to help you get on better footing.

Every problem is solvable if you stop holding on to the past and embrace the decisions that make sense going forward.

— Suze Orman is a best-selling author and Emmy award-winning TV host whose latest book, "Women and Money," was published in March 2007. For details, visit http://www.suzeorman.com.