Not every variable annuity has horrific expenses and is horrifically complicated.
For instance, some are just recognized mutual funds wrapped as an insurance product. There's the underlying mutual fund fee (small for index funds) and a small additional fee for the insurance company administration. You own shares that go up and down with the mutual fund. So you could have the S&P 500, for instance. Your VA would track the index. You don't have to ever turn it into an annuity (equal payment stream) if you don't want to. Instead, you do a "partial surrender" which is just insurance speak for "sell"
The "bad news" is that you take out gains first, so you pay tax on 100% of what you take out until you finally get down to your basis. No capital gains favorable tax treatment. The good news is that it's considered a retirement account, so it's got more protections against seizure than an after tax account, and is probably still treated more favorably in the student aid calculations.