Browsing Tag

tuition insurance

Student Life

Why Tuition Insurance is an Essential Consideration for College Families

July 19, 2021

For many college families, the expense of higher education is one of the largest investments they will ever make. With so much money at stake, it’s important for college parents to make  a plan for the unexpected, in case their student is forced to withdraw from school due to a severe injury or illness. 

What is Tuition Insurance?

For most of the 20 million college students and their families, the financial loss of an entire semester of college is a burden big enough to break the bank. Tens of thousands of dollars are on the line and college families are smart to consider purchasing tuition insurance before the start of the semester. Tuition Insurance provides a refund for tuition, room and board, and academic fees when schools may not in the event of a covered medical withdrawal. It’s not drop out insurance and students must completely withdraw from classes due to a covered injury or illness. 

College is a fun time to meet new people, create memorable experiences, and of course, learn. That’s not to say it doesn’t come without risks. Knowing some of the biggest financial risks will prepare you for the unexpected. 

Tuition Insurance: What’s Covered?

Tuition insurance may not have been essential for all families to consider 30 years ago, when college was more widely affordable and school refunds were more generous. But things have changed. Given the high cost of college and less generous refund policies, tuition insurance is an important benefit that colleges and universities can offer to protect their students. 

Coverage for Major Injuries and Illnesses, Including Covid-19

Even before the pandemic, ordinary medical conditions, not just Covid-19, are a source of large financial losses for both students and schools. GradGuard is the only major provider in the country to cover withdrawals due to becoming ill with Covid-19. 

The 2020 National Student Health Assessment from the American College Health Association data reveals some of the ordinary risks college students and their families face today, and the impact it has on degree completion:

  • Concussion: 2.2% 
  • Mononucleosis (mono): 56.9%
  • Stress: 43.7%
  • Death of a friend/family member: 40.5%
  • Influenza (flu) or flu-like illness: 50:4%
  • Orthopedic injury (broken bone, fracture, sprain, etc): 2.5%
  • Cold/virus or other respiratory illness: 42.1%

Many students arrive at college with on-going and chronic conditions that may interfere with their studies, such as anxiety and depression. GradGuard’s Tuition Insurance covers controlled pre-existing conditions for students who are medically cleared to attend school. 

Mental Health Coverage Included

Last fall, college families and experts alike were most worried about students becoming ill with Covid-19. This year, the focus is on how the pandemic has greatly impacted the mental health and wellbeing of college students. 

GradGuard became the first and only program in the country to cover mental health as a condition. The growth in student mental health concerns looms as another risk to the investments families make when paying for college. 

Among the troubling trends:
  • 2020 report by the American College Health Association found more than half of nearly 9,000 students surveyed experienced anxiety or depression
  • A nationwide study published by the Journal of Adolescent Health found that rates of moderate to severe anxiety and depression among U.S. college students rose substantially over the last few years — from 18% and 23%, to 34% and 41%, respectively.
  • 2020 survey by the American Council on Education found 68% of college and university presidents say student mental health and well-being is top concern

Room and Board and Academic Fees are Also Covered

Tuition Insurance covers more than just the cost of tuition. GradGuard’s plans can also cover room and board and academic fees. Most higher education institutions only provide a partial refund of tuition during the first five weeks of a semester, and virtually no schools provide refunds for academic fees or housing. 

Conclusion

More than 20 million college students are getting ready to head to campus in the fall. After an extraordinarily challenging year due to the pandemic, families are looking for ways to protect their investment from the unexpected. 

By working with more than 400 colleges and universities nationwide, GradGuard is able to offer students and their families comprehensive and affordable coverage for up to 100% of the cost of college including student housing, tuition and academic fees. Each policy also includes Student Life Assistance, which helps families through the logistics that may accompany an unexpected student withdrawal. GradGuard’s mission is all about helping more students graduate. With Tuition Insurance, students who are forced to withdraw are given the rare opportunity for a do-over

Major or chronic illnesses, accidents and injuries happen frequently, even to young and healthy college students. The good news is that college families can protect their investment in higher education by purchasing tuition insurance. Visit GradGuard.com/Tuition to see the plans available on your campus. 

Terms, conditions, and exclusions apply. Plan(s) underwritten by BCS Insurance Company or Jefferson Insurance Company. AGA Service Company is the licensed producer and administrator of these plans. Plans include insurance benefits and assistance services. Contact AGA Service Company at 800-284-8300 or 9950 Mayland Drive, Richmond, VA 23233 or customerservice@allianzassistance.com.

Student Life

Why Tuition Insurance?

July 6, 2021

Endless stress from the unknown alongside having to pay a heavy price tag can make college feel incredibly daunting. This is why you should think about protecting your investment in your education, and put “tuition insurance” at the top of your college to-do list. Insurance protects all aspects of your life, from your car to your home, so why wouldn’t you also want it to cover your pursuit of higher education?

GradGuard offers a Tuition Protection Plan that can put you and your parents’ mind at ease by providing coverage for your tuition, academic fees and housing in the event that you need to fully withdraw from school due to a covered medical condition, injury or illness. 

Sounds too good to be true? Just wait until you learn more. 

Protection From the Unexpected

There are many unexpected events that happen while in college, which is exactly why it is vital to be proactive and plan for those occurrences. Tuition insurance provides a safety net for families to feel secure in the investment of their student’s education.

It Can Give You A Second Chance

No one should be afraid of losing out on their education due to a medical reason. Whether it be injury, illness or a mental health condition, ensuring that you can bounce back after withdrawing from school can be beneficial. Tuition insurance grants you that second chance at college by allowing you to incur little to no financial loss.

Your School’s Refund Policy Isn’t Generous

You might be thinking that tuition insurance is “unnecessary” because your school will refund you your money in the event of a complete withdrawal. The reality is that this is not always the case. In fact, most colleges do not offer any money back after the fifth week of classes, and if they do, it will not cover any additional expenses paid on your behalf. Tuition insurance closes these gaps and protects not only your tuition but also your housing, academic fees and more at any point during your covered term.

Still sound too good to be true? Read some testimonials from families who have benefited from having a Tuition Protection Plan at blog.gradguard.com and to learn more about how tuition insurance can protect you. 

BIO: Morgan Kubasko is going to be a freshman at Barrett, the Honors College, at Arizona State University. She is majoring in Journalism and Mass Communication. She is currently a summer intern with GradGuard.

Student Life

Don’t Rely on College Refunds: Why Tuition Insurance is Important

January 4, 2021

This year has left many individuals uncertain what their academic futures will look like. With COVID forcing colleges and universities to change their business tactics, many students are finding it nearly impossible to get tuition refunds if they are forced to withdraw from school.


How can you protect your investment in your education and get a full refund for your college tuition?

Tuition insurance is a great way to keep your finances secure in a time of crisis. Here’s a guide to help you understand tuition insurance and how it could benefit you.


How COVID has Affected Refund Policies


Most colleges and universities offer a refund policy allowing you to get your money back after deciding to withdraw from school. This usually applies only to the first five weeks of college. However, most schools do not refund 100% of the money you paid to attend.


COVID has affected college life in many ways as most students shift to online classes. Many institutions are continuing to charge room and board, even while students study from home. Some classes also lack certain classroom fundamentals. This includes mock trials, clinical experiences, and more.


Some colleges have found themselves unable to give refunds at all. The virus has brought many new changes that universities aren’t sure how to cope with; some schools are citing a lack of funding as a reason to hold onto college tuition. Due to this lack of funding, among other issues that universities are facing with the virus, you may have a hard time getting a refund.


What That Means for You

If you decide to attend college or a university in the near future and decide to withdraw yourself, you may be out of luck when trying to get a refund. Some students have taken their universities to court over the matter. Many cases are still pending and waiting for a resolution. 


Not only will you be paying for things you won’t actually receive, such as room and board, but you may not even get your money back after dropping out. At most, you may receive a small fraction of what you paid. 


What is Tuition Insurance?


Are you considering applying for college in the coming year? If so, then you should strongly consider getting tuition insurance for yourself. This will help you protect your money in case you decide not to follow through with your education.


Tuition insurance, otherwise known as tuition refund insurance, is exactly what it sounds like; it protects you from being denied a tuition refund after withdrawing from school. The reasoning behind your withdrawal, however, must be due to your medical or mental state. For example, if you received a serious injury that prevents you from attending your classes, then you can get your tuition funds back with tuition insurance.


Your reimbursement may depend on the type of coverage you apply for. This means that you are not guaranteed a 100% refund just because you have tuition insurance; however, it is better to receive a percentage of your tuition because of your insurance than to be denied any refund.


Tuition insurance commonly covers one academic term. However, you are able to purchase additional insurance policies in order to protect yourself throughout your academic career. 


The Benefits of Tuition Insurance


Tuition insurance can grant you peace of mind when it comes to paying for your education. You can know that your investment in your education is safe and that if the worst happens, you can get your money refunded. 


If you are wondering whether or not tuition insurance is right for you, there are a couple of things you can consider.


First off, consider the overall cost of your tuition. Is the institution you are attending particularly expensive? If so, then tuition insurance can greatly ease your mind and is a great way to protect your investment.


If you have a chronic illness or severe mental illness or disability that may make it hard for you to attend college, then tuition insurance is a great way to protect yourself. The last thing you want is to enter into your institution and realize you cannot continue due to your physical or mental health.


With COVID as a serious threat to your physical health, you should strongly consider tuition insurance in case you do contract the virus. This disease can leave you bedridden for weeks, which would make you incapable of completing your schoolwork and attending your classes even if they are online.


How to Get Tuition Insurance


If you are considering tuition insurance, you will need to apply for coverage before beginning the academic year. You are not required to purchase tuition insurance for the entirety of your academic career, so choose your plan and coverage wisely.


There are many different plans that you can choose from, so do your research before settling on a plan. Your school likely offers various forms of tuition insurance, so don’t hesitate to look and see what plans they are offering as well. 


Protect Yourself and Your Money


There’s no need to worry about where your money is going when it comes to your college tuition. With tuition insurance, you can keep your assets safe and get a college refund without being denied by your university.


Are you considering attending a university in the near future but are concerned about needing to have your tuition refunded?


We’re here to help. Contact us with any questions or concerns you have about our tuition insurance and continue reading our blog for more helpful information.

Student Life

Testimonial: Tuition Insurance Can Give You a Do Over for College

December 8, 2020

Most colleges and universities don’t provide full refunds for tuition and academic fees. It’s something many students and families don’t find out about until after it’s too late, and their investment in college is lost. That’s how GradGuard’s Tuition Insurance can help in the event of an unexpected medical withdrawal.

Kara first learned about GradGuard’s Tuition Insurance when her son, Andrew, was an incoming freshman at Marist College. She said she wanted to make sure that if anything were to happen that was one of the covered reasons, their big investment in his education wouldn’t be lost. Marist is one of the nearly 400 colleges and universities that rely on GradGuard to protect students from preventable financial losses.

College students and families are smart to have GradGuard

Looking ahead, Kara and Andrew’s decision to purchase tuition insurance was smart. She said her son struggled a little bit the first semester.

“When he went back in the beginning of the spring semester, it became clear that he was not going to be successful, for a variety of mental health issues,” Kara said. “Our first priority was to bring him home, which we did.”

Andrew completed a medical withdraw from school. It was early in the semester, so the family was able to get a partial refund from the school. Then they contacted GradGuard and filed a claim for the balance.

GradGuard provides a refund when schools may not

“The amount that we paid at the beginning of the semester, minus what the school refunded — we got every other cent back from GradGuard,” Kara said. “We were thrilled. That money is for him to pursue his education when he’s ready.”

GradGuard was able to give this family the opportunity for a do over. That’s not something that happens a lot, let alone in college. But when the unexpected happens, GradGuard can help you get back on track. Learn more about how to buy Tuition Insurance for your school using GradGuard’s college search tool.

Questions to ask your college or university:

What will happen to my tuition payment if my college student is forced to withdraw from school due to an illness or even COVID-19?

What is the school’s refund policy?

Do you offer tuition insurance?

Student Life

Forbes Spotlights Value of Tuition Insurance

November 17, 2020

The impact of the Coronavirus on the operations of colleges and universities has focused attention by students and families on the refund policies of schools. With families investing more than $300 billion annually in college expenses, it’s not surprising that Forbes recently published an article explaining how tuition insurance can provide a refund when a school may not.

Tuition insurance may not have been essential 30 years ago, when college was more widely affordable and school refunds were more generous. Today, however, given both the high cost of tuition and less generous refund policies of schools, it’s an important benefit that colleges and universities can offer to protect their students.

When combined with trends in student health conditions, tuition insurance is also an essential consideration for families worried about their student’s chronic health conditions or potential vulnerabilities.   

Less Generous College Refund Policies

If a student needs to leave school, it’s more than likely that the institution will only provide a prorated refund through the first few weeks of school. Refunds for room and board and academic fees are even more unlikely to happen. 

Forbes personal finance journalist, Cameron Huddleston, recently interviewed John Fees, the CEO and co-founder of GradGuard about the importance of knowing a school’s refund policy.

“Typically, this is only a refund of tuition through the first five weeks of classes,” Fees said. 

A 2019 benchmark study conducted by HigherEdStudy for GradGuard found that only 6% of schools reported providing a 100% refund of tuition—down from 23% in 2015. None of the public colleges surveyed provide full refunds and nearly half of the schools don’t provide any refund for student fees and academic fees. 

Source: Forbes, Tuition Insurance Rescues Lost College Deposits And Payments. Data: GradGuard, Benchmark Study: 2019 Trends & Common Practices for Managing Student Withdrawals & Tuition Refunds

Growth in Student Medical Conditions 

A 2019 national benchmark study of colleges and universities revealed student medical withdrawals are also on the rise.  In fact, 70% of schools surveyed reported a growth in student medical withdrawals – up from just 42% in 2015.

In addition, the American College Health Association’s annual research report on student medical conditions also confirms the value of  tuition insurance.  The complete report includes even more dramatic increases in mental health conditions that may disrupt a students semester. 

GradGuard’s tuition insurance covers an unexpected withdrawal due to a covered illness, injury, or other covered reason. This chart below demonstrates the impact of health conditions that can also create a financial loss for families. 

Four common student illnesses including concussions and mono have a big impact on degree completion

How Colleges and Universities Benefit

Given the growing media interest by Forbes and other publications, schools are smart to provide their students the opportunity to protect their investment in college. There are multiple benefits to schools who offer GradGuard’s tuition insurance to each of their students including:

  • Help assure that students who have to leave school for a medical reason can afford to return to campus when they are healthy enough to do so.
  • Demonstrate to students that they can receive a payment for the potential financial loss that may result from withdrawing from an academic term due to covered reasons such as medical conditions.
  • Provide a more affordable product with expanded coverage that meets the needs of the school and student.
  • Reduce collections issues from students who leave school by providing the school a payment for any outstanding balance of an insured student.

Lastly, schools are smart to offer GradGuard’s tuition insurance because it will enable them to have an answer to students and parents who may ask them for it. The attention from the Forbes article, ‘Tuition Insurance Rescues Lost College Deposits and Payments’ will certainly lead to more questions from students and families looking to protect their investment in college.

Health

Bloomberg: Tuition Insurance Sounds Great, Unless it Doesn’t Cover Covid-19

November 16, 2020

As Covid-19 outbreaks continue to pop up nationwide, college campuses are no exemption. Naturally, college parents are anxious about their kids’ health. Olivia Raimonde, Janet Wu and Katherine Chiglinsky took a deep dive for Bloomberg into the health and financial worries of Covid-19 and college.

The feature, ‘Tuition Insurance Sounds Great, Unless It Doesn’t Cover Covid-19’ includes an interview with a GradGuard member, Marcy Fischer, about her decision to send her daughter to Emory University with Tuition Insurance. Covering her daughter’s tuition and off-campus lease comes to about $30,000 per semester.

“You know, if they just get sent home from school and go virtual, that’s one thing,” Fischer, who lives in Massachusetts, told Bloomberg. “But if they were to get sick and have to withdraw from university for the semester, we’d be out that money.”

To cover the risk of losing tens of thousands of dollars, Fischer bought a tuition insurance plan from GradGuard, she told Bloomberg. The plan can cover what would have been otherwise lost tuition expenses and other fees if a student is too sick to finish the semester.

Atlanta-based Emory University is one of the nearly 400 colleges and universities that partner with GradGuard to offer college students and their families the best rate and coverage for tuition insurance. Fischer was able to protect a semester’s worth of expenses, $30,000, for around $300. Any student attending a four-year non-profit college or university can purchase a policy, however, the policies are underwritten by Allianz Global Assistance and are more costly if purchased directly online.    

Interest in tuition insurance has jumped significantly over the year, as the pandemic made the financial risk of college even more apparent, according to John Fees, CEO of GradGuard.

“Families are more aware than ever before of the risks of paying for college,” Fees said.

Epidemics and pandemics are typically excluded from GradGuard’s Tuition Insurance coverage. However, until further notice, GradGuard is choosing to accommodate claims for students who completely withdraw from school due to becoming ill with Covid.

In addition to Covid, Bloomberg goes on to explain that tuition insurance can also cover withdrawals due to other types of illness, including mental health conditions.

But it’s important to note that tuition insurance won’t cover costs if a school moves from in-person classes to online-only learning.

“It’s a medical withdrawal, not a change in how schools teach,” Fees said. “It’s not a business interruption insurance.”

GradGuard’s Tuition Insurance is an affordable way for college students and families to protect what’s often the second-largest investment in their lives. Covid outbreaks on college campuses highlight further proof of how costly it can be for these families when a student is forced to withdraw.

Student Life

Financial Advisor Magazine: Want a College Refund for Covid Chaos?

October 6, 2020
Financial Advisor Magazine: Want a College Refund for Covid Chaos?

Even outside of a pandemic, getting a college tuition refund or reimbursement could be tricky. Confusion has only increased since the spring, and is coming to light even more now that fall semesters are in full swing at colleges and universities nationwide. 

Kevin Walker dives into the college refund conundrum for Financial Advisor Magazine.

Many schools attempted to curb outbreaks by delaying the start of in person classes, or switching entirely to online-only instruction. 

But despite Covid-19 concerns, many schools opened doors for on-campus learning and the inevitable spread of the virus still happened, despite mask requirements, rules against large groups and gatherings, and other restrictions, Walker states.

College And University Response

Some colleges and universities have tried to limit further spread by recommending students quarantine and shelter in place. Financial Advisor mentions the University of Arizona’s two-week shelter in place order that was implemented on September 14.

This semester is proving to definitely be a challenge for higher education administrators nationwide – at no real surprise. 

College Refund Policies

Adding to the chaos are college refund policies. The majority of colleges and universities provide no refunds for tuition beyond the first few weeks of classes, according to an Ipsos poll for Allianz Global Assistance. Virtually none provide refunds for academic fees and room and board. That same poll found that about 85% of parents and students said they would be hurt financially if there were no refund at all. 

As Walker states, it’s important to know what policies generally exist:

• When a student withdraws during a semester (because of illness or for some other reason) the college’s refund policy may include reimbursement, especially if the student withdraws within the first month.
• Colleges and universities typically offer refunds on a sliding scale. Most schools won’t give any money back at all after the fifth week of classes.
• On the other hand, if a student is expelled for a specific cause, such as not following the college’s Covid-19 guidelines, there’s no refund. 

Typical School Refund Policy

Tuition Insurance To The Rescue?

Tuition insurance provides refunds for students withdrawing from school for medical reasons. This is particularly helpful for students who withdraw in the middle of or late in the semester. Typically, they may not receive any tuition reimbursement at all. But tuition insurance can handle the amount not covered, including other fees that are typically excluded from college refund policies, Walker states. 

Tuition insurance doesn’t apply if a student leaves for academic or disciplinary reasons, or because they can’t afford the costs.

GradGuard, with nearly 400 school partners, is the largest provider of tuition insurance in the country. Plans exclude epidemics but the insurer issuing the policies, Allianz Global Assistance, announced in June it would cover students who had to withdraw due to contracting the coronavirus.

It’s important for students and families to know what’s covered and what’s not in terms of Covid-19 coverage:

  • Policies must be purchased prior to the start of classes. 
  • Don’t expect it to cover in-person classes moving to online-only instruction. 
  • Fear of attending class due to the virus isn’t covered.

Questions to Ask

Making sure you understand your school’s refund policy as it relates to Covid-19 and beyond will save you some surprises that may come up later on. Some of this may seem like a lot to take in, but with college being one of the largest investments most families will ever make, it’s smart for college students and families to look into the answers to these questions.

1. What is the college or university’s room and board refund policy? 
2. Is it possible to get a tuition refund if a student withdraws? What is the “sliding scale” of the refund-to-withdrawal time line?
3. What are the college or university’s current Covid-19 policies?
4. What disciplinary action occurs if a student doesn’t follow the Covid-19 policies?
5. What are the student loan options with the CARES Act?
6. Are there more options to pay for college if families’ employment situations have changed? Can the financial aid office take another look at the student’s financial aid package?
7. What are some ways students can make money in college or through off-campus jobs?

College students and families are prudent  to individually assess their own personal situations when it comes to tuition insurance.

Student Life

Testimonial: Tuition Insurance Gives Peace of Mind to College Parents

July 30, 2020
Tuition insurance is smart for families to consider

Tuition insurance exists to provide a refund for a covered medical withdrawal when colleges and universities don’t. The best way for college students and their families to understand the value of GradGuard’s Tuition Insurance is to hear from a customer directly.

Anna learned about GradGuard’s tuition insurance before her son started college in New Jersey.

“We weren’t exactly sure if he was going to follow through on college,” Anna said. “He has some medical issues, so we weren’t sure exactly what was going to go on.”

Anna said it was in the back of her mind that Tuition Insurance was a good idea to have, so she purchased a policy for her son as a precaution.

“We weren’t exactly sure if we would need it, but we thought it was well worth it,” Anna said.

Worth the cost for peace of mind

Tuition Insurance can be purchased for as little as about 1% of the cost of tuition for the majority of schools that GradGuard directly partners with. That’s $10,000 worth of coverage for $106.

Anna’s son needed to withdraw from school for a covered medical shortly after the semester started. Because she had purchased a policy before the start of classes, she was able to file a claim for tuition and fees.

“The fact that it’s insurance and it’s peace of mind, and we actually had it, led us to feel more comfortable,” Anna said.

Thirty years ago, tuition insurance may not have been necessary, but today, given the high cost of college and ordinary risks of college life, it’s smart for all families to be vigilant.

“You just never know when you actually need it,” Anna said. “I would recommend it highly.”

College is one of the largest investments most families will ever make after buying a home. You insure your home, and your car, so why not also insure your tuition? You can with GradGuard’s Tuition Insurance.

Questions to ask your college or university:

What will happen to my tuition payment if my college student is forced to withdraw from school due to an illness or even COVID-19?

What is the school’s refund policy?

Do you offer tuition insurance?

GradGuard is thankful to work closely with more than 350 colleges and universities nationwide, including Ramapo College of New Jersey, where Anna’s son was enrolled. Learn more about how to buy Tuition Insurance for your school using GradGuard’s college search tool.

Other

Money Magazine: Tuition Insurance and Coronavirus

July 28, 2020
Some college families consider tuition insurance amid the pandemic

Chances are, college is the biggest investment families will ever make next to buying a home. According to College Board, the average cost of a 4-year public university for out-of -state students in $42,970, and $26,590 for in-state students. So it’s no surprise to see the growing interest in tuition insurance amid the pandemic, as college families are looking for ways to protect their investment.

Money Magazine contributor Joanna Nesbit interviewed John Fees, co-founder of GradGuard about how tuition insurance works, what’s covered, and what’s not.

How does tuition insurance work?

GradGuard’s Tuition Insurance reimburses tuition, room and board, and academic fees if a student completes a covered medical withdrawal. Plans also cover mental health conditions – which are on the rise among students – including depression and anxiety. Untimely death of a student or tuition payer may also be covered.

It’s important for students to know there are limitations and exclusions that apply, and plans must be purchased prior to the start of classes.

What isn’t covered by tuition insurance?

GradGuard’s Tuition Insurance is not “drop-out insurance.” As stated in the Money article, student’s can’t simply decided they need to go home. They must be assessed by a licensed medical practitioner and obtain a written recommendation to withdraw. Other exclusions include injuries during amateur sports competitions, participating in a riot, or pursuing in extreme sports such as mountain climbing or bungee jumping.

Pre-existing physical or mental health conditions might be covered. Fees advises that the best thing students with pre-existing conditions should do is to obtain a doctor’s note saying they’re well enough to start college.

Can tuition insurance help protect against uncertainties caused by the coronavirus pandemic?

Epidemics and pandemics are typically excluded from most insurance policies. But until further notice, GradGuard’s plans include coverage if a student becomes ill due to COVID-19. It’s important to be aware that if campuses close, and students are sent home again like they were in the spring, tuition and housing fees would not be reimbursed by tuition insurance.

GradGuard’s Tuition Insurance also does not provide refunds due to fear of being on campus, or if the method of instruction has changed — such as moving in person classes to online.

The bottom line:

Many families may not find the need for tuition insurance, especially if their student’s school provides a generous refund policy or they can afford the cost of an unexpected extra semester in the event the student had to leave school. However, most families find it difficult to afford the extra cost and thus are smart to purchase tuition insurance, and make sure their investment is protected.

Looking to buy tuition insurance? First, ask your school if they offer it. Another easy way to find out is to use GradGuard’s College Search Tool.

Other Safety

Top 3 Reasons College Tuition Insurance Is a Smart Decision

July 13, 2020

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 and needs to completely withdraw from the university due to a covered reason.
  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 first week of classes. Be sure to check with your school to see what their refund 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 mental health conditions 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/tuition to see the plans available on your campus!