For many college families, the expense of higher education is one of the largest investments they will make. In fact, according to College Data – the average published in-state tuition, fees, and room and board charges for the 2019-2020 school year was $26,590; with tuition exceeding $50,000 at private institutions.
With so much money at stake, it’s smart for college families to have a back-up plan in case your student needs to withdraw from the university due to a certain illness or injury. Supporting a college student through an unexpected event like this can be stressful and can absolutely be made worse if parents don’t know the university’s refund policy. In most cases, universities don’t offer refunds of tuition costs outside of the first few weeks of classes; that’s why college families should consider tuition insurance.
The Top 5 Reasons Tuition Insurance is a Smart Decision
- If you can’t afford to lose the investment you are making each semester: Tuition Insurance can provide up to a 100% refund of your expenses if your student needs to completely withdraw from the university due to a covered reason. Tuition insurance could cover those costs and help you get back on your feet in the event of a withdrawal, without the added stress of a financial loss.
- If your school does not provide a 100% refund: Do you know what your school’s refund policy is? As mentioned above, most schools don’t offer refunds after the fifth week of the semester. In fact, in a 2020 survey done by HigherEdStudy of college and university bursars and heath administrators, only 6% of schools reported providing 100% refunds. According to the survey, most schools only refund a portion of tuition for qualified withdrawals through the fifth week of classes and virtually no school provides a refund for academic fees.
- Not every student graduates: There are many factors that may disrupt a student’s education. Tuition insurance is not drop-out insurance, but it can help you to avoid the financial loss if your student needs to withdraw from school due to a covered illness or injury.
- If you have additional academic expenses: On the off-chance that the school does provide a 100% refund for tuition, most do not refund academic fees or student housing. Many tuition insurance plans can provide coverage for not only tuition but also for expenses related to academic fees and housing.
- Student health and well-being can force a student to withdraw from classes: The American Health Association National College Health Assessment reports that student health incidents such as illness, accidents, and injuries happen frequently, even to your healthy college students. It is important to note that ordinary student health problems such as mono, chronic health conditions, or injuries may also force your student to withdraw from classes and cost them thousands of dollars.
The Investment in College and your Student Deserve Protection
Remember tuition insurance must be purchased prior to the start of school and, like all insurance plans, be sure to check the specific terms, conditions, and exclusions of your policy.
This article was updated in July 2020.