At 123 LumpSum we understand the price of a higher education is constantly on the rise. Each year, 12 million students are forced to rely on loans to keep up with this escalating cost. According to data released by the Federal Reserve Bank of New York, the average student debt load has risen 5% since 2010, bringing the total up to an estimated $26,600 per student. What’s more is that many graduates are finding themselves unable to repay their loans upon graduation. A shocking 37 million student loans are currently in default, putting millions of young graduates at a great disadvantage when beginning their adult lives.
Fortunately, there is a way to pay for college without accumulating large debts. Instead of relying on loans, students who have been awarded a structured settlement in a personal injury case can use these payments to cover the cost of tuition, books and other expenses. If these payments are not enough, students can also sell structured settlements in exchange for a lump sum payment.
There are several benefits to selling a structured settlement to fund college expenses. While government grants are available to students who qualify, they are rarely enough to fully cover tuition, not to mention books, supplies and living expenses. When grants and scholarships fall short, most students assume that government and private loans are their only option. The problem is that this money must be repaid, and student loan payments are frequently more than graduates can afford.
Sell a Structure Settlements to Avoid Loans
Graduates can only defer repayment for so long, and refinancing does not always offer much relief. This leaves young adults in a very difficult financial position. Many college graduates are forced to default on their student loans; which not only racks up penalty fees but can also ruin a person’s credit.
Students who sell structured settlements can often bypass student loans while still receiving the education they need to achieve their goals. The money a student receives after cashing in a structured settlement is not debt; it is an advance of payment. The transaction is also regulated in 47 states and must be approved by a court. This is done to protect the owners of structured settlements and confirm that the sale is both legal and fair.
Additionally, as with any financial transaction, there are a few things that students must consider before selling their settlement. The first is the company they choose. To ensure a smooth sale, it is important to select a reputable and experienced company with a positive history of purchasing structured settlements.
It is also necessary to understand that there will be certain fees and costs associated with the sale. Still, for students who wish to begin their career free of debt, selling a settlement is an advantageous way to gain their desired degree while avoiding expensive student loans.