by John Darer® CLU ChFC MSSC RSP CLTC
Cash in a student's bank account will result in less needs-based financial aid. The Expected Family Contribution ("EFC") is higher for child's assets than a parent's. EFCs represent the MINIMUM amount you pay to get in the door"according to the "Simplified Guide to Expected Family Contributions and College Aid"
So why do cash now pushers suggest that you sell structured settlement payments (at a discount) to pay for college? It's hard to find a website for a settlement purchaser that does not make such a suggestion. Furthermore, the issue of Expected Family Contributions appears to be totally ignored by the settlement purchasers that suggest it on their websites, as well as the bloggers that support the cash now pushers.
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