Here is a simple strategy you can use to kill 2 Birds with one stone. Send your child to college and Invest in College town real estate to help pay off the Student Loans.

College Housing can often be expensive, Living in a dorm is not the most favorable living conditions for Most College students. Why not buy a 3 or 4 bedroom home near your child's college and use the rent generated from the extra bedrooms to help pay for your child's College Expenses.

You purchase a 4 Bedroom home for $250.000 with a 20% Down Payment leaving you a Mortgage payment of $735. The $735 Payment is based on a 5 Year Mortgage with fixed payments based on a 1.95% Interest rate. The 20% down payment can come from many sources including the equity in your home or your IRA or Keogh accounts (Talk with your tax advisor on the proper way to do this)

You rent each bedroom for $300 a month. Since your child will stay in 1 bedroom you gross $900 a month (More then enough to pay the Mortgage and some or all of the Taxes and Insurance) and your Child lives rent free. You also get the tax benefits that go along with being a real estate investor. Assuming an appreciation rate of 7% at the end of 4 years (when your child graduates) your 250,000 house is now worth $327,000. Your child has lived rent free for 4 years while in college you have netted a profit of $75,000 or a 150% return on your initial $50,000 Down Payment.