Hi PBD,

I'm a FiLife intern, and I did a little research on your question.

I would generally recommend that everyone exhaust any federal loan possibilities before turning to private loans, because they generally offer much lower rates. Unfortunately, federal student aid is only available for higher education (college or career school). So, if you're going to take out a loan to finance your daughters' high school education, your only option is going to be a private loan.

There are some loans, such as Act Education Loans from the Student Loan Network that cater specifically to parents looking to fund their children's private school tuition. Because it is a private loan, there are no federal forms to complete and no application deadlines. There is also a 12-month grace period after graduation before loan repayment begins. If your oldest graduates next year, you would have to begin repayment of her loan one year later.

Funds from an Act Education Loan would be disbursed directly to you, the borrower, rather than to the school. However, your credit history may hurt your chances of approval or mean a higher interest rate and/or loan fee. Interest rates on Act Education Loans can vary widely depending on your credit - from Prime minus 0.5% to Prime plus 7.9%.

Your best bet might be to take out a personal loan from your bank. Once approved, you can meet with a credit specialist to discuss the interest rate. Unfortunately, your credit history is likely to mean a higher interest rate.

Bank of America, for example, offers flexible term personal loan products and revolving personal loan products (check them out here. . If you take out a personal loan, make sure that your lender does not charge a penalty for paying more than your minimum payment. That way, you can pay down the balance of your loan more quickly when you get back on your feet, rather than continuing to pay interest on it.

I hope that helps!