You’ve got a payment stream from a structured settlement, but you need more money than what you’re receiving to pay for college tuition. It makes sense to wonder if selling some or all of your future payments is the right thing to do.
We’ve talked about the process of selling structured settlement payments and how CrowFly gets sellers more money. So, we won’t delve into those details here. Instead, let’s talk through a few considerations if you’re applying to college and you have a structured settlement.
First, you likely have the option to take out student loans, whether through a federal loan, a private one, or a combination of both. When shopping around for loans, it’s important to review their interest rates and when you’d be expected to start paying that money back to the lender. Some loan companies allow you to defer repayment until you finish school. Others expect you to start paying them back immediately. And sure, if you sell your structured settlement to pay for college instead of taking out a loan, then you won’t have student debt down the road at all, which can be a beautiful thing.
So, can you pay for college with structured settlement payments? The answer is that yes, you probably can. But whether you should (and whether a judge will even approve the sale) depends on whether the ends justify the means. What we mean is, if selling will put you in financial hardship, then it’s not likely the best route for you. But if you can cover your needs without your future payments and pay for college tuition with the lump sum you receive, then it may be worth considering.
At the end of the day, your payment stream was put in place to help you be financially stable for a long time. Weighing how much you (and your spouse and/or kids, if you have them) depend on those payments to cover your daily expenses, versus how student loan debt will impact you later, is a conversation to have with a financial advisor. While we cannot provide financial advice, a member of our team would be happy to talk you through the pros and cons of selling and what you can expect.
Call 833-CROWFLY for a free, no-obligation chat.