Pay for College with a Trust Annuity
If you hold a trust annuity as an asset, receiving regular trust payments periodically, you may be able to use a trust annuity sale lump sum to fund continuing education for yourself or someone in your family. Using these kinds of assets can help you avoid some of the tremendously high costs of higher education when you want to make a serious investment in your family’s future.
HIGH COSTS OF EDUCATION – AND STUDENT LOAN TERMS
Nearly everyone in America knows that the costs of a higher education have risen dramatically in recent years, and that it’s well beyond the reach of many Americans to pay for college tuition from cash savings. The extreme costs of just one semester at school are all over the media. The President has even addressed issues of affordability that will determine whether coming generations of students get the advanced training and higher education they need to advance themselves and the economy.
But part of the high cost of a college education comes in the form of interest on student loans. Since most people don’t have enough savings to pay tuition, they use loans to pay for school. But the loans themselves carry heavy interest, meaning that those large amounts of money are generating even more debt over time. Currently, there’s a debate over whether to keep student loan interest rates low because allowing a large upswing in interest rates would drown students in even more debt.
THE TRUST ANNUITY: A VALUABLE OPTION
For trust annuity holders, paying college tuition doesn’t have to mean struggling with high-interest debt. Those who are lucky enough to be receiving trust income in an annuity can sell part of their trust annuity holdings to get a cash lump sum that can potentially help pay for tuition as the student enrolls. This will help the family to avoid the major costs associated with student loan interest.
Income from a trust annuity sale doesn’t come with debt, or need to be repaid. It comes out of a held asset. However, trust annuity holders do need to find qualified trust annuity buyer firms to put together a successful transaction and get the money that they need, when they need it. It’s also helpful to shop around, since different trust annuity buyers may offer different rates and benefits attached to a trust annuity sale deal.
SELLING YOUR TRUST ANNUITY WITH CBC
If you are considering a trust annuity sale to fund important further education, CBC can help you get the most out of one of these powerful assets. At CBC, we have experience helping clients to set up different trust annuity sales according to their unique financial needs. We can assist you through every step of this sometimes complex transaction, and get you the advice that you need on how to optimize your plan.