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What Does College Debt Have to Do With Life Insurance?

Education/Student Loans

Planning for the unexpected may help ease the financial stress of college tuition.

One in four Americans have student loan debt. Student loan debt is one of the biggest financial challenges facing people in their 20’s and 30’s, with the average student loan debt currently totaling $37,172. According to the Federal Reserve, more than 600,000 borrowers in the country are over $200,000 in student debt, and that number may continue to increase. This is a large burden for many people in the U.S. and ultimately impacts your ability to reach other important financial goals moving forward. How you choose to manage student loan debt can make a big difference in your long-term financial picture. Not to mention the additional debt you may take on once you’re married.

Although the topic may make you feel uneasy, have you thought about what would happen to your college debt if you or your spouse unexpectedly died? Having a life insurance policy in place may be beneficial for paying off those debts and not leaving your loved ones saddled with their load. At WAEPA, we’ve created a vision map to take into account the unexpected events that could have long lasting financial effects on our members. Whether you’re saving for college tuition or trying to handle your college debt, WAEPA provides help where it’s applicable to ease those financial burdens. Allowing you to focus on taking care of you and your family.

How can WAEPA help with college debt?

Well let’s say you and your spouse have racked up debt prior to getting married. Once you wed, your debts become a joint effort. If you or your partner happen to pass unexpectedly, your debts may not automatically disappear. Instead, that debt can be passed along to your spouse that will unfortunately still have to be paid. With a sufficient life insurance policy, the policy proceeds they receive can be put towards that debt. Ultimately, helping to create peace of mind.

How can WAEPA help fund college tuition?

Let’s say you and your spouse have children that are planning to go to college. If one of you pass unexpectedly, would you still be able to afford it? Having a life insurance policy in place could help fund your child’s college tuition and ease the burden of the living spouse who would have to determine how to fund it Although these are not situations we want to think about, they are situations that you should have a plan in place for.

We also offer an annual scholarship program for our members’ children. The WAEPA Scholarship Program has awarded over $2 million dollars in scholarships and are available for full-time study at accredited institutions, which can include four-year colleges and 2-year vocational schools. Every year, we proudly provide tuition assistance for up to 80 individuals.

WAEPA’s Free Financial Program

Outside of offering policies that help decrease the burden of paying off college debt. We also offer a free financial wellness program as a member benefit. You can access important tools and connect with advisors to help create a game plan for your debt at no additional costs to you. Whether you are starting a college fund or trying to manage your current college debt, we’re here to help from all different angles.

Join WAEPA Today

You can apply for Group Term Life Insurance* at any time of the year (no Open Season or qualifying life event required). After more than 75 years of serving Civilian Federal Employees, WAEPA is the life insurance choice of over 46,000 Feds and their families. Calculate how much coverage you should consider and apply today.

*Underwritten by New York Life Insurance Company