What is American Dream Insurance?
American Dream Insurance guarantees the investment you are making in college education will pay off. ADI covers the difference between what we expect a student could earn in the marketplace today and what they will likely be able to earn with a degree. If, it turns out, that the student is not earning what we predicted in the years following their graduation – our insurance will pay the difference, effectively ensuring a minimum level of income for the student.
How it works
Insuring your student loans is a simple 3-step process.
Purchase a policy
Pay a small percentage of the loan amount to guarantee increased earnings from the pre-degree income level
Finish your degree program for which you are taking your loans
Submit tax return
Submit your tax returns to prove your income. At the end of 5 covered years, a claim will automatically be processed
Claims are automatically and immediately paid
If you do not earn the income specified in the insurance policy, you'll be paid the difference of the guaranteed income amount and the actual income.
A person making $50,000 per year decides to buy a policy before starting an MBA program to guarantee making $75,000 per year immediately following the degree. Over 5 years that is $125,000 in coverage. If, for whatever reason, the student only earns $65,000 a year during the covered period, they'd be eligible to claim $50,000 from EIC.