SOURCE: NextStudent

October 15, 2008 13:10 ET

In Uncertain Job Market, NextStudent Offers Short-Term Health Insurance for Job-Seeking Graduates

PHOENIX, AZ--(Marketwire - October 15, 2008) - As U.S. companies continue to cut jobs and scale back on business costs, recent graduates still struggling to land their first job out of college face one of the bleakest job markets in years. And a growing number of these jobless graduates, having to go without employer-sponsored health insurance, are quickly joining the ranks of America's 50 million uninsured.

While they're in college, most undergraduates are covered either by their parents' health plan or by school-sponsored health insurance, the cost of which is usually added to their tuition and fees each semester. Once they've graduated, however, former students no longer have a school-sponsored health plan to turn to, and many may no longer be eligible for coverage as a dependent under their parents' health insurance.

Although typical college graduates -- early twenty-somethings who feel young and healthy -- may think they have no real need for health insurance, any accident or medical emergency could wipe them out financially before they've even had a chance to earn their first paycheck. More than 50 percent of personal bankruptcies in the United States are attributable to an illness or medical bills, according to a 2005 study conducted by Harvard University.

Graduates who haven't yet found a job, or who have recently been hired but are still waiting for their employer-sponsored health insurance to take effect, can help protect themselves both financially and medically with NextStudent short-term health insurance. This customizable health insurance program offers a broad choice of individual health insurance plans designed specifically to cover recent graduates and others in periods of transition.

"In this economy and job market, especially, new grads are going to have a hard time getting employer-sponsored health insurance," said Jack Wallace, NextStudent Executive Vice President. "We want to make sure that these graduates have affordable access to the health coverage they need."

NextStudent short-term health insurance plans are affordable, flexible, and available without lengthy waiting periods -- coverage could begin as early as the next day. There are no network restrictions -- covered individuals can visit any doctors or hospitals they choose -- and NextStudent short-term health plans can be customized to fit a range of personal needs and budgets.

Individuals can choose from 30-day to 12-month plans (the available coverage terms may vary by state); they can pick their own deductible, ranging from as low as $250 up to $5,000; and they can select the co-insurance coverage they want, with 50-, 80-, and 100-percent co-insurance rates available. NextStudent short-term health plans include prescription drug coverage and offer coverage of up to $2 million per person.

NextStudent, a longtime respected name in the student loan industry, is offering its short-term health insurance plans, as well as student insurance, in conjunction with one of its trusted partners, a Fortune 500 company and a member of the S&P 500 that has been in business for over a century and holds an A.M. Best rating of Excellent.

"Student health insurance and short-term health insurance make sense for our customers and for us," said Wallace. "We're a student- and family-oriented company. We're seeing parents paying high premiums to keep their college kids insured while they're in school, and then a lot of graduates leaving school uninsured. We want to offer students, graduates, and their families affordable options in health insurance, just like we did in student loans."

By adding short-term and student health insurance options to its product line of student loans and education finance services, Wallace said, NextStudent continues to pursue its company mission of providing affordable key products that meet the needs of both current and former college students, graduate students, and their families.

"Students and their parents have been trusting us for a long time to help them pay for college," Wallace said. "Now they have an opportunity to trust us to help keep them affordably insured."

About NextStudent

NextStudent, www.nextstudent.com, Federal Lender Code 834051, is dedicated to helping students and their families find affordable ways to pay for student needs, for college, and for life after college. NextStudent offers one-on-one education finance counseling and a portfolio of highly competitive products and services, including a free online scholarship search engine, student health insurance, short-term health insurance, and information on parent and student loans, private student loans, and student loan consolidation programs.

Contact Information

  • Contact:
    Jack Wallace
    Executive Vice President
    (480) 250-1992
    Email Contact