college loan debt Archives - Spencer Insurance Agency, Inc

Congratulations to all our college graduates!


Many of our clients have sons or daughters who graduated from college.  Spencer Insurance would like to congratulate all the graduates!

As your graduate moves on in life let us help guide them in their insurance needs.  College graduates need insurance too!

What happens to your car insurance if your graduate moves out of the house and takes one of your cars or buys a new car?  What if they move to another state?  New Jersey Car insurance is not the same as Pennsylvania car insurance.

Another insurance policy that is often overlooked is renters insurance. Many young graduates feel their personal property is not worth insuring.  I know he is my son but read what Brian says about renters insurance at his Philadelphia apartment.  “Spencer Insurance Agency has always been there for me, but when it comes to renter’s insurance, they really came through. After college when I moved into my first apartment in University City, my roommate and I had never heard of renter’s insurance and had no idea it was something we should get. Luckily for us, my dad and Spencer Insurance Agency were there to keep us covered. Now, I must admit, my dad is the owner of Spencer Insurance Agency which obviously makes me bias. However, what follows is 100% true and will hopefully convince anyone that renter’s insurance is crucial for any renter, even if you don’t use Spencer Insurance Agency.

In January of 2007, a fire broke out in the row home connected to ours. The firewall between our two apartments kept the fire from spreading into ours, but it did not stop the smoke. It also did not stop the water from flooding into the apartment through the hole the firefighters cut in our ceiling to release the smoke as they put out the fire. When all was said and done, we started the process of cleaning the things that could be cleaned and replacing the things that needed replacing, as we also searched for a new apartment. Before the fire, when I was first told how much coverage we should get, I laughed at my dad, thinking there was no way the old second-hand stuff I had collected while in college was worth that much. However, the cost of coverage was cheap and I trusted my dad’s advice. When the final costs of the fire had been settled and I realized I had spent close to $15,000 cleaning/replacing everything, I was very happy I had taken his advice. I didn’t pay for a thing, just my renter’s insurance and a small deductible.

Hopefully my story will convince anyone on the fence that renter’s insurance is well worth the cost. If you decide to get it, I highly recommend Spencer Insurance Agency. Yes, Charlie is my dad, but that doesn’t change the fact that he is one of the most honest men I have ever met, and he will provide you the same level of service he does to his own son.”

I hope you listen to Brian’s advice and give me a call.  Renter’s insurance policies can cost less than $150 a year.

There are other insurance policies you should consider for your college graduate. If your graduate has student loans that you personally guaranteed then you should consider a very inexpensive term life insurance policy.

Give us a call at 215-885-2200 or contact us on our website. Check out information on other life changing events like getting married, getting divorced, having a baby, adding a teen driver or downsizing and preparing for retirement.  Check out how these life changing events impact your insurance policies.

Send your graduation pictures to me at  We would love to congratulate your graduates on our Facebook page and newsletter.

Barnegat Couple Left with Son’s college loans gets relief!

An article on’s “In the Money” Section details a story about a couple who was left with major debt when their son died in a car accident at age 25.  For the full article go to:

I mentioned this now since many parents are completing loan applications to send their children to college.  The cost of college has skyrocketed over the last decade forcing many parents to take out loans in addition to their children’s Federal and State loans.  If you do this, you need to make sure you know who is responsible for this debt if your child dies.

The article talks about a Barnegat, NJ couple who were stuck with loans that amounted to over $80,000 when their son died in a car accident. 

After their son’s death they received a bill from the New Jersey Higher Education Student Assistance Authority (NJHESSA) for $81,000. This bill amounts to $685 a month since Ralph Grande so-signed the loan guaranteeing the payments if his son did not make them.  A spokeswoman for the authority said “Although we are sympathetic to the difficult circumstances involved, under terms of the bond indentures that finance the NJ Class loan program, HESSA is not permitted to forgive student loans as a result of the death of a borrower.”

When financing college tuition many parents take out parent loans or co-sign state and private loans.  This puts a responsibility on the parent to repay the loan if the child does not pay it no matter the reasons. 

Some State and Federal programs will forgive loans that are co-signed in the event of the borrower’s death; however I would make sure by calling the agency or bank that provided the loan.

There is another strategy parents can use to avoid this debt in the event their son or daughter dies.  Parents should consider taking  out a life insurance policy on their child to cover the debt. 

The cost of a $100,000 twenty year term policy for a 24 year old male who is in good health and a nonsmoker is under $150 a year.

By having a $100,000 life insurance policy on your son or daughter you would receive $100,000 upon their death to pay off those loans.  By using life insurance to pay off the loans your retirement fund or other assets are not jeopardized.

Contact us today at 215-885-2200 for a FREE QUOTE!  Don’t let the death of a child derail your retirement. 

On a positive note, the Grande’s debt was reduced to $41,000 by the lender.  In a follow up article (In The Money August 3, 2010) Ralph Grande said “It is $41,000. Joan and I are going to have to cash in retirement accounts and obviously work a lot longer, but at least the burden of $81,000 will be reduced.”


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