At CrowFly, we’ve spoken to many college students who are interested in selling their future structured settlement payments. And it makes perfect sense to explore your options; after all, 45 million people collectively owe more than a trillion dollars in student loan debt in the U.S. You might run into some financial hardship as you try to pay for both your living expenses and college education. So, is it possible to get a lump sum for your future structured settlement payments and use that money while you’re in college?
Possibly. In most states, getting cash for your structured settlement needs to be in your best interest in the eyes of the court. In a few states, the court will check if you are facing "imminent financial harm." Maybe your car is on the fritz, public transportation is nowhere close, and you need a new vehicle to get to school and work. Or, school has you so busy that you can’t get a job that pays enough to allow you to make ends meet. Maybe your student loans aren’t cutting it, and you need more money to live on. Sound familiar? If so, there is an option to sell some or all of the future payments from your structured settlement. Here’s what you need to know to start thinking about whether it’s the right option for you.
What it means to sell your structured settlement payments when you’re in college
The first thing to know about the process of selling structured settlement payments is that you won’t get the full dollar value of them, no matter which company you work with. But at CrowFly, we work hard to get sellers the absolute most money for their payments. Check out our discount rate page to understand how selling works and see a ballpark of CrowFly’s rate.
You do want to do your research to see if you have other options. You might be able to find an unsecured personal loan. If your credit is excellent, meaning 700 or higher, you might be able to get 6% interest. But for most of us, loan rates are higher -- as much as 35%. Or, you could get a payday loan, which could cost you 400% annual interest. In other words, the loan will help you now, but you are going to end up paying way more in the long run, which could bury you in debt later. So, if you’re out of savings and family members aren’t able to help you in the short-term, selling your future payments will generally cost less than pursuing other options.
Is selling a structured settlement legal for college students?
Yes, as long as a court reviews your situation and approves the sale ahead of time, and as long as you are 18 years or older, and the payments are yours and not someone else’s. There are also federal and state laws that govern the sale of structured settlements. To be permitted under federal law, the sale must be in your best interest and cannot violate another court order or the law. The court in the appropriate state jurisdiction must approve the sale, and each state has its own rules. Generally, you can legally sell your future structured settlement payments if you are facing an emergency or otherwise need an immediate lump sum of cash.
This all may sound like a lot. But don’t worry; our team is here to talk with you about your options. Besides the fact that we work to get sellers the most money, we also focus on educating every potential seller we speak with. There’s no obligation to choose our services if you contact us. We’ll discuss your situation and goals, explain the laws that apply to you, and help you think about the best next step. Visit crowfly.com/get-started or call us at (888) 560-6629 for more information.