NCAA approves waiver to allow purchase of loss-of-value insurance

Wednesday October 15th, 2014

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

ROSENBERG: What we need to talk about when we discuss Winston

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.

• Big Ten will allow athletes to return, finish education

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. 

[30 Mile Radius]

- Molly Geary

SI Apps
We've Got Apps Too
Get expert analysis, unrivaled access, and the award-winning storytelling only SI can provide — from Peter King, Tom Verducci, Lee Jenkins, Grant Wahl, Andy Staples and more — delivered straight to you, along with up-to-the-minute news and live scores.