The suggested policy our agents recommended through 2023 were 50% of our maximum coverage for 6-Year plans, and 75% of our maximum coverage for
1-Year plans.
We did not suggest maximum coverage because we expect that students are not going to need student loans for every cent of their college expenses.
Recently, the Education Data Initiative inflation rate for college tuition went up considerably compared to the inflation assumption we were using to price our policies this year.
That means the prices on our premiums and coverage page are about to jump. They may look considerably higher for 6-Year plans. The jump will not be as pronounced for 1-Year plans, but they will be affected.
But, our policies are tied to their coverage. If you look at the total coverage changes due to this change in assumptions, our old suggested policies of 6-Year 50% and 1-Year 75% are roughly equivalent to the new year’s policies of 6-Year 25% and 1-Year 50%.
What does this mean for you? Maybe nothing. If you were interested in our policies, just be aware that the plans we would quote to you before are still there, and with the same coverage.
It means the expected amount of student loans your child might need has increased, but that does not necessarily mean that your child will need more coverage from a Studious Solutions policy.
With all this in mind, we are faced with a concern about our suggested policies. We could suggest the 6-Year 50% and 1-Year 75% plans as before, and the suggested prices would be higher than what you have seen before, but the coverage would also be tens of thousands of dollars higher. Or we could start suggesting the 6-Year 25% and 1-Year 50% plans.
As a parent, being informed of this change is really all you need. If you expect to send your child to the Ivy Leagues, you should go for the more expensive plans. If you think your child is likely to go to a local school, community college, or trade school, you should go for the cheaper plans. In state universities would be somewhere in the middle.
But for parents who do not read this article, the suggested policies may be the best information they have coming in to Studious. To help make the best decision for them, I am going to ask you all for advice.
Tell us through our contact page! Do you think Studious should recommend policies that are a little more expensive for greater student loan protection, or do you think we should recommend policies with less coverage that are cheap and encourage more children to go to college in the first place?
Thank you for answering and consider getting a Studious Solutions policy to protect your child’s education!