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Hmm...

Peter Grant

Their daughter was involved in a car accident, resulting in permanent partial disability. She's only halfway through her studies, but will never be able to complete them. She's no longer capable of working in her chosen field, and the permanent effects of her injuries will restrict the number of alternatives available to her (and her future income, too). She may be dependent on her parents for at least a roof over her head, if not physical assistance with the daily necessities of living (like taking a bath, or getting dressed) for the foreseeable future.

Her parents are good people. They're more than willing to step up to the plate and help meet their daughter's needs. However, just as they began to pick up the pieces of her former life, along came the bills from her student loan providers. She's on the hook - or, rather, since she's no longer earning, her parents are on the hook - for over $60,000, and repayments start at once. Putting all her needs together, they'll need to find at least an extra $1,000 per month - but they don't have it. They've asked her siblings to help, but both of them are just starting out in life, not earning great salaries, and they have their own needs - including their own student loans. They probably won't be able to come up with much.

It seems to me like this scenario is a classic case for insurance. Why isn't there a "student loan insurance" program that will pay off student loans in the event of accidental death or disability?

I suppose that would partially defeat the purpose of having parents co-sign. The parents are (knowingly or not) providing the "insurance". And of course you can't reasonably insure against dropouts or kids who take 10 years to graduate or graduate without any useful skills.

This entry was published Fri Aug 30 08:47:21 CDT 2019 by TriggerFinger and last updated 2019-08-30 08:47:21.0. [Tweet]

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