College to continue 'income insurance' for new transfer applicants

Augustana College again will offer “income insurance” for new students who transfer to Augustana for the spring 2022. This effort involves Degree Insurance's flagship insurance product, American Dream Insurance.

After positive response from the initial pilot program for the fall 2021 semester, the college and Degree Insurance will continue the partnership.

“The feedback and interest we received on the initial program launch affirmed that this program was special,” said Kent Barnds, vice president of external relations. “Students are seeking out ways to take their next step with confidence and reassurance, and this
program fits what they need.”

For students in this program, the pay-out comes after graduation if the student does not earn the expected salary for their major.

The program guarantees income at the average for academic fields, based on actuarial information. In brief, if an Augustana student graduates in a field where the average income is $60,000, but the Augie graduate’s job in that field pays only $55,000, the income insurance makes up the difference in a cumulative lump sum of $25,000 at the end of five years.

To remain eligible, participating students must work in the United States after graduating from Augustana. If the graduate decides to enroll in graduate school, serve a church mission or participate in Teach for America or a similar program, the coverage will be paused during those years. Once the graduate begins a first job in their field, the Degree Insurance coverage begins.

“Students are facing so many unknowns right now,” said Barnds. “This partnership, along with an Augustana education, builds confidence in their future even before they graduate.”