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Combating the Threat of Student Loan Debt with the IUL

Coming to the close of 2017, Americans are more burdened by student loan debt than ever. Student Loan Hero reports a total of $1.48 trillion in total US student load debt, a sum that is over $600 billion more than the total US credit card debt. Over 44 million Americans in their 20s and 30s are carrying these debts and find themselves responsible for payments which average $200 – $300 per month.

With these statistics looming larger than ever before, it’s not surprising that the delinquency rates on student loans are also much higher. Analysis of the state of student debt by Goldman Sachs Group Inc. show that delinquency rates on student loans are actually higher than those on auto loans or mortgages. Underwriting standards for student loans are generally less stringent and can contribute to this delinquency further down the line.

Attendees of private, four-year, and graduate programs all graduated with debts, the majority of them walking away with their degree and a balance of $25,000 or more still due*. It’s not difficult for any American in their 20s or 30s to identify at least one sibling, friend, or colleague still battling to pay off their student debt. Facebook posts about this particular milestone. Even though it has become so normal for today’s young adults to have student loan debt it does not have to be the case for everyone.

Supplemental options are available. And Indexed Universal Life (IUL) policy can be a resource for families and students with college ambitions. IUL policy owners have the option to access the policy’s cash value through tax free loans or withdrawals**. Instead of taking on a massive student loan that may follow a child around well after their graduation day, an IUL withdrawal could be used towards a tuition payment, housing costs, or even books. Even students with funds from 529 plans and grant recipients can require supplemental funding for rising tuition costs.

By allocating resources to a tool like an IUL policy, families can help future students save for college in an effective way. For more information on college saving options and the IUL contact IFN today! 800.921.3100

 

Sources:

Student Loan Debt is Now as Big as the US Junk Market, Think Advisor

*Student Loan Debt Statistics, Student Loan Hero

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Disclaimer

The information contained herein is for general information purposes only. Imeriti, Inc. is not to be held responsible for the accuracy of this information. Neither Imeriti, Inc. nor its employees provide tax or legal advice. As with all matters of a tax or legal nature, your clients should consult their own tax or legal counsel for advice. Any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax adviser.

The information, statistics, and opinions reported herein are from sources believed to be reliable. However, Imeriti and the author of this blog do not guarantee the truth, accuracy, and reliability of any source, fact and/or statistic cited and no do necessarily agree with any opinions expressed by such sources.

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