WIN Magazine - Winter 2013 - (Page 11)

FEATURE AN INNOVATIVE SOLUTION FOR REDUCING THE DEBT OF COLLEGE RMI STUDENTS BY TOM NERNEY N EWS STORIES AND he a dlines paint a dire picture of the financial futures of young Americans graduating from college risk and insurance management programs with substantial debt. While a certain percentage of undergraduate students will graduate college with little or no student debt, student loans have surpassed credit card debt in becoming the second highest type of debt in our country, behind home mortgages. Seventy percent of those graduating from Pennsylvania colleges alone in 2011 carried student debt, at an average of $29,959 per student. With student loan debt surpassing the $1 trillion mark, the opportunity for the wholesale insurance business community to step up and help our recent graduates is more urgent than ever before. As employers, what is our obligation in helping overcome the burden of student loan debt? And how does this debt impact business across the U.S.? At USLI, we believe in youth and invest in them heavily. I have found that having their energy in the office pushes us all to get better each and every day. I have listened to them speak about their undergraduate experiences for which they are both grateful and proud. Yet for many, after doing whatever they had to in financing their way through college, the reality is sinking in. As an employer and a CEO, it is unsettling to know that the salary provided to a recent college graduate just isn't cutting it anymore. Many of the students we meet have been conditioned to borrow their way through college, with little attention to the consequences on their future. And we cannot pay them enough so they can achieve financial independence. I have asked myself if we, as an innovative marketplace with hundreds of colleges and universities in our own backyards, can do something about it. I am calling on all leaders of wholesale insurance agencies and companies to consider how we can create positive change to keep the mounting debt at bay ... to bring greater financial literacy to our young people. How can we as leaders in the insurance community work toward a solution? Such a solution will be different for every company; but, regardless of your agency's or company's capacity, you can make a lasting impact. At USLI, we implemented a College Help Qualified Educational Assistance Plan (per Section 127 of the IRS Code of 1986). In other words, this is a plan to help students from a dozen area colleges and universities that are interning at USLI pay W I N | W i n t e r 2 0 13 | 11

Table of Contents for the Digital Edition of WIN Magazine - Winter 2013

Disappearing…and Reappearing Risk: What Lies Ahead
An Innovative Solution for Reducing the Debt of College RMI Students
Does Politics Influence Regulatory Forebearance?
Predictive Analytics: The “Black Box” Used by Savvy Insurance Professionals
Just the Facts—On FATCA: Frequently Asked Questions on the Foreign Assets Tax Compliance Act
Your Reputation Matters, Online and Off
New Wholesale Insurance Product Focus: Protection from Hacked Bank Accounts: Protecting Small Business Policyholders
In the WIN-ner’s Circle
Index to Advertisers/

WIN Magazine - Winter 2013