According to CollegSimply.com, the annual tuition cost of California public universities ranges from $5,742 to $11,834 a year. That doesn’t account for books, additional fees and on-campus living expenses, which can easily add another $30,000 or so.
When a parent is seriously injured and no longer able to work, the ability to pay for their child’s college education can feel hopelessly out of reach. If the parent is entitled to a settlement because of the injury, some settlement funds can be designated to go toward the child’s college tuition and other education-related expenses.
Payment Timing. The structured settlement can direct specific payment amounts to a child during college years, say $35,000 when the child turns 18, 19, 20 and 21 to be used to pay specifically for college expenses. The funds are compounded tax-free until they are distributed.
Financial Aid Issues. Many students are eligible for some kind of college financial aid. However, receiving a large upfront lump sum or annual payments during college from a settlement may affect eligibility. One way to qualify for aid and still use settlement funds to pay for college is to delay college-targeted settlement payments until after the student graduates. When settlement funding is received after graduation, the money can be used to pay off any student loans that have been incurred.
Feel free to contact me with questions about using structured settlement funds to pay for college costs.–Pat
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