The National Student Clearinghouse, which follows the status of undergraduates at institutions eligible for federal aid, publishes the most reliable data on college completion measures including something called the “persistence” rate. This is the percentage of students who return to college at any institution for their second year.
According to the organization’s most recent report, of the 3.5 million students who enrolled in college for the first time in fall 2017, 74% returned to any U.S. school the following fall. That means one in four students who start college, do not return to any college the following year. That’s nearly 900,000 students went through all the trouble and expense to enroll, possibly borrow money, apply for and receive government grants, purchase books, and perhaps even move, but did not return to school the next year. They also did not transfer to another school.
This helps put in perspective the value and need for tuition insurance. Though the primary reasons students do not return to school appear to be factors related to academic readiness and capacity to pay, the truth is other life events get in the way.
This is where GradGuard’s Tuition Insurance can help. When a student needs to withdraw for legitimate reasons such as unexpected illness, injury or accident, tuition insurance can provide a refund when colleges may not.
The best way to see the value of tuition insurance is to hear from a member who enrolled in the program. Indeed, as one of GradGuard’s customer reports:
“Tuition Insurance was such a lifesaver. It should be an option on every college and university website,” – Mindy D., GradGuard member
Watch below to hear her explain how she considered protecting her daughter, and how tuition insurance enabled her to avoid a large financial loss when she became ill during the semester.
Thanks to GradGuard’s collaboration with Allianz Global Assistance – it is now easier than ever before for college students and their families to receive valuable protection for the investment they make in higher education.
If your school does not provide 100% refunds, it is useful for parents to ask the school to do so. Most school leaders surveyed agreed that it should be as convenient for families to protect a $30,000 or more investment in college as it is for consumers to protect a $300 vacation with travel insurance.
We are thankful that we worked closely with the school where Mindy’s daughter, Camrey, was enrolled. As a college parent, she clearly expresses the value of tuition insurance and the peace of mind it provided to her and her family as they cared for Camrey’s well-being.
This article was updated in May 2020.