by John Darer CLU ChFC MSSC CeFT RSP CLTC
Structured settlement payees should do their best to avoid selling their structured settlement payments for pennies on the dollar, "to help pay for college" or "help pay off college loans". Many times the effective discount rate on proposed deals to sell your structured settlement are really not a good deal at all because they exceed your student loan rate.
President Biden has called for forgiving $10,000 in student loan debt as part of a broader coronavirus relief package from Congress, while Senators Schumer and Warren have pushed for vanquishing up to $50,000 in student debt. If you can hang in there without eroding the stable tax-free income provided by your structured settlement then it may be worth the wait.
Always seek independent professional advice from someone unrelated to the settlement purchaser that is soliciting you.