Getting help with education loans.
What’s permanent life got to do with it?
Whether it’s for college, grad school, or a continuing adult program, everyone knows that getting an education these days is very expensive. In fact, average tuition and fees rose about 3% in 2014-2015, according to U.S. News data.1
So at some point, you may need a loan for school—whether your child’s, grandchild’s, or even continuing education for yourself. Although you can go through the usual channels to get one—banks/lenders, your 401(k), credit cards—there is another option.
While you may already know that permanent life insurance products, such as whole life and universal life, offer valuable financial protection via a death benefit, if your needs for life insurance or your priorities change, then your policy can also provide cash value accumulation, which over the long term, may be significant enough to help you. And the interest rates on policy loans may be lower than a bank loan. Be aware, however, that loans reduce a policy’s death benefit and cash value.
Check out these helpful resources.
- FinAid!’s website lists details on loans for graduate, business, law, or medical schools.
- The U.S. Department of Education is a good place to start your research. Student grants, loans, and work-study are the three major forms of student financial aid available through the Department’s Student Financial Assistance office. This is updated yearly.
- The College Board’s “bigfuture” website has lots of general loan information.
- For information on loans for continuing education, see http://www.collegescholarships.org/loans/continuing.htm.
- Our Financial Planning calculators can help you budget for loan repayments or estimate how much you can save in a 529 plan. See “Student Loan” calculator at http://www.calcxml.com/calculators/student-loan-repayment?skn=253.
See “529 College Savings Plan” calculator at http://www.calcxml.com/calculators/529-college-savings-plan?skn=253
Talk to one of our Agents to learn more about how policy loans can help you.
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