NCAA approves waiver to allow purchase of loss-of-value insurance
The NCAA approved a waiver on Wednesday that will allow a Division I student-athlete to borrow against his or her future earnings potential and secure a loan in order to purchase loss-of-value insurance.
College athletes can purchase insurance in case illness or injury causes their stock to fall before entering a league's draft. Several college football players have recently purchased such a policy, including Florida State's Jameis Winston, Texas A&M's Cedric Ogbuehi and Oregon's Marcus Mariota.
Florida State and Texas A&M are reportedly paying for the policy themselves. A new NCAA rule allows schools to use money from their Student Assistance Fund to help pay for such an insurance. Oregon, however, is reportedly not paying for Mariota's.
From the new NCAA's statement on the new waiver:
Student-athletes may borrow against their future earnings potential from an established, accredited commercial lending institution exclusively for the purpose of purchasing insurance (with no cash surrender value) against a disabling injury or illness that would prevent the individual from pursuing a chosen career, provided a third party (including a representative of an institution's athletics interests) is not involved in arrangements for securing the loan.
Ogbuehi, a senior offensive lineman, has said he likely would have declared for the NFL draft after last season had Texas A&M not been able to pay his insurance premiums.
- Molly Geary