College students who buy insurance on their own are now getting “insurance forever” under a new proposal by the Obama administration.
Under the proposed legislation, all college students would be covered by a “grand total of $1,500,000 per year” for property insurance coverage, including $250,000 for each student, according to a new release from the Department of Education.
That number includes student loans, which are typically paid off over 30 years.
The policy would apply to all college and university students who do not have an employer and are eligible for federal student loans.
The policy would not apply to students who are eligible and enrolled in public colleges and universities, according the release.
The department released the proposal on Thursday, the same day it launched an online application for colleges to submit their own proposals for “insurer premium support,” which would be funded by the federal government.
The department said the insurance policy would cover any student with a net worth of more than $150,000.
“It’s not just a way to make sure college students can afford college, it’s a way for colleges and university to provide affordable and accessible financial aid to students,” Education Secretary Betsy DeVos said in a statement on Thursday.
“The Department of Labor has been working with colleges and the private sector to ensure that students have affordable financial support to pursue their educational goals.”
Education Secretary Betsy DeVore announced in December that the department is working to expand the policy to include more students, and that the Department would seek proposals from colleges for the policy, which would not cover student loans or student-loan balances.
The Department has received hundreds of thousands of comments from college students in the past month, according a release from its website.
The comments included many students who had received insurance on campus, including from their employers, but not the federal student loan program.
The new policy would only cover students who currently live on campus.
Under the previous proposal, students would have to have lived on campus at least for at least three years to qualify.
The proposal is the latest effort by the administration to combat student loan debt, which is rising at a rate of nearly $2 trillion per year.
The Trump administration is looking to reduce the interest rate on federal student debt, a program that students can use to pay for college.