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Ease Worries With the Student Loan Rider
May 27, 2020
Graduation is a time of excitement and opportunity, when new professionals can look with optimism to the future. But it can also be a time of uncertainty as they start new careers, often with large student loan burdens. This year’s graduates may have additional concerns in our challenging economic environment.
Student Loan Stats
The Facts
- 45 million active student loan borrowers in the United States1
- $1.6 trillion total U.S. student loan debt1
- 65% of college graduates have student loan debt1
- 73% of medical school graduates have student loan debt2
One thing is certain: Most students help finance their education with student loans. Nearly two-thirds of 2018 college graduates left school with student loans. Their loans average $29,200 each.1
For medical students, the numbers are even higher. In 2017, nearly three-fourths of medical school students graduated with student loans. The median medical school debt is $192,000.2
Offer the Student Loan Rider to Ease Concerns
The Platinum Advantage Student Loan Rider can offer some peace of mind in an uncertain world. The rider can help them make student loan payments if they can’t work due to illness or injury.
How It Works
- The Student Loan Rider pays a monthly benefit, on top of the basic monthly benefit, to reimburse student loan payments. It’s based on the amount of coverage bought and monthly student loan amounts.
- The benefit is in addition to issue and participation limits.
- Available to most occupation classes: 5A, 5P, 4A, 4P, 4S, 3A, 3P or 3D.
- Coverage period can be 10 or 15 years.
- Smallest benefit allowed is $100.
- Largest benefit allowed varies by occupation:
- Medical occupations (P/S/D occupation classes): $2,500
- Non-medical occupations: $1,500
You can help your clients determine the student loan coverage amount that makes sense for their monthly payments. For example, if an applicant has total student loan debt of $100,000 and pays approximately $1,000 a month, recommending a 10-year term may be the right move.
Use the Student Loan Rider flyer to talk to recent graduates about how Platinum Advantage can provide a safety net to help them pay student loans if they become unable to work due to sickness or injury.
1 Student Loan Debt Statistics in 2020: A Record $1.6 Trillion, Forbes.com, Feb. 3, 2020
2 Analysis in Brief, Volume 18, Number 4, Association of American Medical Colleges, September 2018
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