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cost of college

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Top 3 Reasons College Tuition Insurance Is a Smart Decision

July 11, 2019

When college families and their students are discussing college, the topic of money always comes up in the conversation. For good reason too! Did you know that the combination of tuition, fees and room and board charges average between $20,000-$50,000 a year?

For many college families, the expense of a higher education is one of the largest investments they will make. Since there is so much money at stake, we suggest that college parents make a plan in case their student is forced to withdraw from school due to severe injury or illness. Of course, if you are one of the few families out there that can afford to lose your large investment, then tuition insurance may not be necessarily needed for you.

However, for most of the twenty million college students and their families, the financial loss of an entire college semester is a burden big enough to break the bank. As a result, college families are smart to consider the purchase of tuition insurance prior to the start of the school semester.

3 Reasons Tuition Insurance is a Smart Decision

  1. If you can’t afford to lose the tuition paid for a semester at school – Tuition insurance can provide up to 100% refund of your expenses in the instance that a student gets severely ill or injured; it can also help cover the costs needed to get back on your feet in the event of needing to withdrawal.
  2. If your school does not provide a 100% refund – Do you know what your school’s refund policy is? A majority of school refund policies do not extend beyond the fifth week of the semester, and many don’t refund the full cost after the start of classes. Be sure to check with your school to see what their policy is so you can see how much of your money is at risk.
  3. If you have additional academic expenses – Even if the school does provide you with a 100% refund for tuition, most schools do not refund academic fees or student housing. Many tuition insurance plans can provide coverage for academic fees and student housing in addition to tuition.

Student health incidents like illnesses, accidents, and injuries happen frequently, even to young and healthy college students. The good news is that college families can protect their investment by purchasing tuition insurance! Visit our website at www.gradguard.com/tuitioninsurance to see the plans available on your campus!

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Essential Questions Regarding Tuition Refunds & Tuition Insurance

June 27, 2019

Back to school season brings with it the usual media discussion about the cost of college, and what is necessary and what might not be needed for families to be best prepared for the fall semester.

Many insurance products aren’t essential… until you need them. Then, they can be a lifeline that helps protect your family from potentially devastating losses; always ask yourself about the risk you are taking for your investment in higher education. Can you afford to pay for an extra semester of college if something happens?

We suggest that all college students and families ask three questions prior to the start of college:

  1. What is the financial consequence if your student is unable to complete the semester due to a serious illness, injury or death of a parent?
  2. Does your school provide 100% refunds for medical withdrawals?
  3. Can you afford to protect your investment with tuition insurance?

When selecting a school, it is imperative that you know that schools tuition refund policy.

Today, many parents don’t know the answer to any of the questions above. Most have no idea how the school they attend would handle a refund if their student was unable to complete the semester due to an unexpected illness or injury.

Determining the Need for Tuition Insurance:  Medical withdrawals are an infrequent, but costly event for students and their families. A 2015 survey of college officials estimated that 41% of campuses report having more than 1% of students complete a medical withdrawal a year and 59% indicating less than 1%. Data from the 2019 Association of College Health Administrators (ACHA) national student health reports also highlights the frequency of events that students indicate may disrupt their education:

Protect Your Student & Your Investment:   Unless schools provide 100% refunds for medical withdrawals, GradGuard suggests that parents’ purchase at least some tuition refund insurance coverage for their student.  Check GradGuard.com for the coverage options available at your school. Note that certain school programs offer different pricing and coverage options and there are limitations to tuition refund insurance coverage.

Remember that coverage must be purchased prior to the start of school and may are not available to residents of all states. Remember to see your personal policy for complete details after you purchase!

This article was updated in July 2020

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Top 3 Reasons College Tuition Insurance Is a Smart Decision

June 7, 2017

For college families and their students, when discussing college the conversation almost always turns to money.  For good reason, according to the College Board’s 2016 Trends in College Pricing – the average published in‐state tuition and fee and room and board charges for 2016-17 are $20,090 and for out of state students, total charges are $35,370. The average published total charges at private nonprofit four-year institutions are $45,370.

In fact, for many college families, the expense of higher education is one of the largest investments they will make.  With so much money at stake, GradGuard suggests that college parents make a plan in case your student is forced to withdraw from school due to a bad bout of mono, illness or injury.  If you can afford to pay the cost of an extra semester, then you may not need tuition insurance.

However, for most of the nearly twenty million college students and their families, the cost of an extra semester would be a real financial burden.  As a result, college families are smart to consider purchasing Tuition Insurance prior to the start of school.

The Top 3 Reasons Tuition Insurance is a Smart Decision:

  1. If you can’t afford to lose the investment you are making in your semester of school – Tuition insurance can provide up to 100% refund for your expenses if a student gets sick, injured or have to leave school due to the death of a parent. Tuition insurance can 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.
  2. If your school does not provide 100% refund  – Do you know what your school’s refund policy is?  A majority of school refund policies do not extend beyond the fifth week of the semester, and many don’t refund the full cost of tuition after the start of classes. Be sure to check with your school to see what their policy is and how much money is at risk. Check GradGuard’s school search function to see if your school offers tuition insurance to students.
  3. If you have more than $2,500 of academic expenses – Even if the school provides a 100% refund for tuition, most schools do not refund academic fees or student housing.  Many tuition insurance plans provide coverage for not only tuition but also for expenses related to academic fees and student housing.

According to research from the American College Health Association, student health incidents such as illnesses, accidents, and injuries happen frequently, even to young and healthy college students.  The good news is that college families can protect their investment by purchasing tuition insurance coverage starting at $33.75 for $2,500 per term.  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.

Other Transition

Essential Questions Regarding Tuition Refunds & Tuition Insurance

August 14, 2016

Back to school season brings with it the usual media discussion about the cost of college, and what is necessary and what might not be needed for families to be best prepared for the fall semester.

Many insurance products aren’t essential… until you need them. Then, they can be a lifeline that helps protect your family from potentially devastating losses; always ask yourself about the risk you are taking for your investment in higher education. Can you afford to pay for an extra semester of college if something happens?

We suggest that all college students and families ask three questions prior to the start of college:

  1. What is the financial consequence if your student is unable to complete the semester due to a serious illness, injury or death of a parent?
  2. Does your school provide 100% refunds for medical withdrawals?
  3. Can you afford not to protect your investment with tuition insurance?

When selecting a school, it is imperative that you know that schools tuition refund policy.

A 2016 survey of 510 college parents found that many parents don’t know the answer. More than 2/3 of parents surveyed have no idea how the school they attend would handle a refund if their student was unable to complete the semester due to an unexpected illness or injury.

Determining the Need for Tuition Insurance:  Medical withdrawals are an infrequent, but costly event for students and their families. A 2015 survey of college officials estimated that 41% of campuses report having more than 1% of students complete a medical withdrawal a year and 59% indicating less than 1%. Data from the 2015 Association of College Health Administrators (ACHA) national student health reports also highlights the frequency of events that students indicate may disrupt their education:

Protect Your Student & Your Investment:   Unless schools provide 100% refunds for medical withdrawals, GradGuard suggests that parents’ purchase at least some tuition refund insurance coverage for their student.  Starting at $33.75 for $2,500 of coverage the cost of even a small amount of coverage provides some comfort in case your student is forced to withdraw from school.

Check GradGuard.com for the coverage options available at your school.  Note that certain school programs offer different pricing and coverage options and there are limitations to tuition refund insurance coverage.   Remember that coverage must be purchased prior to the start of school and may are not available to residents of all states. Remember to see your personal policy for complete details after your purchase!