A student-loan debt insurance program may help advisors and their clients with college-age kids narrow down their list of ideal schools, especially if the student's career goals aren't likely to result in big paychecks.
The Higher Education Loan Protection (HELP) program from Kapnick Insurance is a way for colleges and universities to differentiate themselves as parents and students get more selective about choosing their school in the face of potentially unpayable levels of debt.
Students graduated with an average debt of $30,100 in 2015, according to the Institute for College Access & Success. A June report by Morningstar Credit Ratings found student loan debt was up 5 percent to $1.26 trillion as of the end of the first quarter of 2016. The delinquency rate for student loans was 11 percent; loans in deferment or forbearance raised the delinquency rate to 17 percent.
|Offered to colleges and universities
Kapnick’s HELP program is offered to colleges and universities. The schools pay a one-time fee for each incoming freshman class. The program will pay the monthly minimum on loans for students from those schools who can’t find jobs after they graduate, or who have to take jobs with salaries below a certain threshold.
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