Getting help with education loans.
What’s permanent life got to do with it?
Whether it’s for college, grad school, or a continuing education program, everyone knows that getting an education these days is very expensive. According to the Bureau of Labor Statistics from January 2006 to July 2016, college tuition and fees increased 63% compared with a 21% increase for all items.1
So at some point, you may need a loan to pay for school—whether it's for your child, for your grandchild, or even for 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.
You 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, though, then your policy can also provide cash value accumulation, which over the long term may be significant. And the interest rates on policy loans may be lower than those on a bank loan. Be aware, however, that loans reduce a policy's death benefit and cash value.
Check out these helpful resources.
- 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.
- FinAid's website lists details on loans for graduate, business, law, or medical schools.
- College Scholarships.org has more information on loans for continuing education.
- Our planning calculators can help you budget for loan repayments or estimate how much you can save in a 529 plan.
Talk to one of our experts to learn more about how policy loans can help you.