When you receive a structured settlement for a lawsuit or injury, the amount of money you receive each week or month can feel extremely limited. instead of waiting for check after check, a lump sum payment can give you a majority of the money all at once. If you're a college student, there are many advantages to choosing a lump sum over the payment structure.
Read through the following five reasons to choose a lump sum payment and learn how it can help you get through school and beyond.
College Loan Prevention
One of the biggest hurdles to overcome for college are hefty student loans for each semester. Over four or more years, these loans can quickly add up and become a large burden for your financial future. Instead of paying interest rates over 4%, you have the opportunity to have a majority of your college paid off even before you graduate. Using the lump sum payment, you can pay for each semester as it starts, including the extra costs of books and supplies.
By the time you graduate, you will be free of the loans that could put you in a lot of debt before you truly start your adult life.
College is the chance to explore your interests and be free until you settle down with a career and family. Using some of a lump sum can help pay for these experiences. There are many opportunities to choose from, and each one can apply to multiple interests.
- Semester Abroad: Take a semester to study in a different country. This can apply to all types of majors and includes travels all over the world. If your lump sum is big enough, you may qualify for multiple semesters overseas.
- College Vacations: Use some of the money to help afford trips during college vacations like spring break. Enjoy the beach, a cruise, or another exotic location.
- Backpacking Vacations: Use a summer or winter break to go backpacking through various countries. There are many guides online to follow when choosing a backpacking adventure.
Along with tuition, housing can be a huge cost for college students. Instead of paying money into an apartment or dorm room, you may be able to use your lump sum payment on a house. By owning a house, you have the opportunity to invest in property that could become a permanent home or a way to pay for a new house in the future.
When shopping for houses, you want to find something that is close to your campus, but also something you will be happy in for the next five to ten years.
Career & Major Opportunities
With a lump sum payment, you may have the financial freedom to explore and focus on college as much as possible. Instead of working on a job on the side, you can find out about different internships and career opportunities. More time will be freed up to possibly enroll in a new minor, follow an apprenticeship, or get mentored by various professionals at the college.
Use the free time as much as possible to create a stable plan for your future.
Sometimes, the simplest things can make all the difference. If your payment is enough to afford a new car, then you can make a huge difference in your college life. You will not be restricted to campus or public transportation, and you can have a reliable ride that will last through all the college years.The vehicle can be used to visit family, get a job, and travel on road trips to nearby areas.
Purchasing a new car is also a great way to learn about money management, interest rates, and credit reports.
College is all about growing up and discovering yourself. A little extra money can go a long way to choosing your life path. Visit mylumpsum.com to learn more about getting a lump sum payment to boost your finances.