Paying For Education By Selling A Structured Settlement
Filed under: Structured Settlements — Structured Settlement Expert @ 9:12 am
It’s no secret that higher education often does not come cheaply. Paying for a college education can mean the commitment of thousands of dollars – sometimes even hundreds of thousands of dollars depending upon the university in question and the number of children you will put through school. Coming up with such a substantial amount of money can be challenging to say the least; often homeowners will turn to home equity loans and others will rely on personal loans and financial aid to get through the process. For those who are receiving structured settlement payments as a result of a personal injury case, however, there is the option to sell future payments in exchange for a lump sum payout.
Structured settlements are designed for personal injury claimants to allow for ongoing financial needs. Rather than receiving one large payment, the claimant will receive ongoing, periodic payments from an annuity that is funded to support the lifetime of the settlement. Such payments may be adequate to meet the financial needs of the claimant for a time, but when particular financial circumstances arise – such as the desire to pay for a child’s education – such payments may no longer adequately meet the claimant’s needs.
With the sale of structured settlement payments, the claimant works with a buyout company that purchases all or part of the ongoing structured settlement payments in exchange for a lump sum payment to the claimant. Going forward, the buyout company receives the annuity payments instead of the claimant, who now has cash in hand to pay for tuition and other education-related expenses.
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