Making Perfect Sense of the Matter

I went to the bank and said I needed a loan. I have a grown son who is ready to go to college and the tuition is very expensive. I thought I would get a loan and pay the whole first year of tuition, fees, and books and then make payments during the year to make the expense manageable. It made perfect sense to me.

I turns out I must not have much sense. The banker looked at me and said, “What do you have as collateral?” I told him I had a structured settlement payment stream I wanted to use. The flow of payments just didn’t match when I needed the money to pay the college. He said, “Too bad! You can’t use structured settlement payments as a collateral for a loan. The federal government won’t let you because of tax issues.”

So I turned to the next option. I sold just enough of my structured payments to a structured settlement broker to pay the entire first year of college expenses up front. My son goes to college. The bank is out a great loan opportunity. And I got all of my “sense” back.

Share and Enjoy: