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College to offer ‘income insurance’ for new transfers

Augustana College is the first in the nation to partner with Degree Insurance and offer “income insurance” for new students who transfer to Augustana. This effort involves Degree Insurance's flagship insurance product, American Dream Insurance (ADI).

The Transfer Student Income Assurance Program is a pilot program in which 20 new transfer students are guaranteed the average income for their academic field for the first five years after graduating from Augustana.

“This is yet another great reason for transfer students to consider enrolling at Augustana in the fall of 2021,” said Kent Barnds, vice president of external relations. “If the graduate doesn’t earn the expected salary for their major, the difference will be paid through the insurance program.”

This pilot program is limited and targeted as a test, involving no cost to students or to Augustana.

The first 20 new transfer students who apply and are admitted between July 15 and August 23, and enroll for fall of 2021, will be eligible for the income insurance program.

The program guarantees income at the average for academic fields, based on actuarial information. For example, if an Augustana student graduates in a field where the average annual income is $60,000, but the Augie graduate’s job, in that field, pays only $55,000 a year (verified by W2s and federal tax returns), the income insurance makes up the difference in a cumulative lump sum of $25,000 at the end of five years. 

“Augustana and Degree Insurance are partnering because we know that students who enrolled as new students at other institutions last fall may not have had the experience they had dreamed of for themselves,” Barnds said. “This may be the extra incentive they need to pursue an Augustana education.

“In a time when students have experienced so many unknowns, Augustana and ADI leaders hope this partnership signals assurance and confidence for college students.”

To remain eligible for the income insurance program, 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 accepts their first job in their field, the coverage begins.

For more information, contact Bonne Jessee, associate director of admissions and transfer enrollment, at (309) 794-7395.

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