College can be costly and stressful. Sometimes students’ overdo it to the point where they may get ill. In fact, data from the American College Health Association demonstrates that many student health issues are so serious that they can force a student to withdraw from classes.
If you get sick or injured and you’re forced to withdraw from school, what happens to your investment?
Most times, the thousands of dollars students are paying for college are at risk. Though universities may refund a portion of tuition thru the first few weeks of school you can safely assume that tuition will not likely be refunded after the 5th week of classes and that academic fees will also not be eligible for a refund. A 2015 survey of university bursars and health administrators confirmed that 84% of institutions do not provide a 100% refund.
According to John Fees, co-founder of GradGuard, an authority in helping students and their families protect the investment in higher education, “families are often aware that their college student may be vulnerable to the stress of college life but it is important to note that ordinary student health problems such as a mononucleosis, chronic sickness or injuries may also force a student to withdraw from classes and could cost thousands of dollars.
Tuition insurance can help families minimize the risk of financial loss due to withdrawal. It’s not “drop-out” insurance, but should a student need to withdraw from school for a covered medical reason, tuition insurance can help protect that investment.
GradGuard offers tuition insurance starting at $29.00 for $2,500 of coverage but typically is about $135 for every $10,000 of coverage you need. GradGuard also offers special pricing and coverage options at more than 100 colleges and universities.
It is important to consider:
- Does the college provide 100% refunds for medical withdrawals?
- If not, what is the potential financial loss and can you afford it?
- When do classes begin? Just like you can’t buy insurance after a fire or theft, you must buy tuition insurance before classes start.
Fees concludes that “for most college parents, college is the 1st or 2nd largest investment in their family financial life. As a result, it is a smart move to know your college refund policy and to consider protecting your student with tuition insurance.”
About: GradGuard, a service of Next Generation Insurance Group, which is an authority in protecting college students and their families. GradGuard’s tuition and renters insurance programs are valuable student benefits available through nearly 200 colleges and universities. Since 2008, GradGuard’s insurance programs have protected more than 600,000 students and families. Follow us @GradGuard