Being a student has its fair share of traveling. From breaks, vacations, traveling to and from campus, to even studying abroad. Whether you’re road-tripping to the west coast, studying abroad in Spain, or enjoying the beaches of Southeast Asia, knowing the ins and outs of student insurance can help make your trip a safe one!
There are a few different kinds of insurance you should consider when traveling during school, both in and out of the country: Auto, Health, Renters, and Travel.
College is a whole different ball game than high school, and contrary to popular belief, it has nothing to do with the classes or work you’ll be doing. For many students, college is the first time you will be responsible for yourself in more ways than one. One of the most significant differences is being in complete control of your education. You get to decide what you would like to study and what classes you get to take. You have the power to determine your academic future!
For many students, this can be overwhelming with so much new incoming information. We are here to help give a few pointers to ensure that you don’t overlook important details, whether it is your first semester or your last.
One of the most important things to look into when choosing a college or university is what policies they have in place. This can often get overlooked when enrolling because so many exciting things are happening all at once. Some of the policies we suggest you look into are:
Managing a schedule is hard, but you can get the hang of it in no time with some practice. Before classes start or when you have some spare time, take a moment to think about all of the different things on your plate: attending classes, doing homework, studying, sleeping, hanging out with friends, and taking care of yourself; not just by eating the proper meals, but creating a budget or having clean clothes to wear. Details like this can get pushed aside when life becomes hectic, but knowing this ahead of time is an excellent way to ensure they don’t get forgotten. These are all essential everyday things that are vital for us to succeed in life, but can be hard to manage the different elements for the first time on our own. Lean on your friends and family to help you create a schedule that works for your so one of these areas in your life doesn’t suffer.
A good work-life balance is often talked about, but frequently overlooked. It’s easy to get stuck in the mindset that you must work, work, work all the time. But with all that hustle comes the great need for rest. You must have the appropriate downtime to relax and recuperate after using your body and brain. Eating healthy meals and getting the right amount of sleep is just as crucial to your success as making sure you attend classes and study. If we put out too much energy and don’t give ourselves enough time to unwind, it can lead to bigger problems like excessive stress, weight gain, and even depression. You will need to know your limits and listen to your body when it tells you it is time for a break. It can always be hard to say no in college, but there will always be another chance to do something. If you need to stay home and take care of yourself, your friends will understand! Understanding this concept now will benefit you greatly in the future with your career.
With this in mind, it can be hard to keep track of important resources and departments you may need in the future. Your college or university most likely will offer many different services or people on campus that you can turn to if you need help getting on the right track.
There’s a lot of information to consider when you’re first starting college, but it shouldn’t be too overwhelming. Start early and don’t panic; make checklists of the most important stuff to know and you’ll be good to go!
For many college families, higher education is one of the most significant investments they will ever make. With so much money at stake, college parents need to make a plan for the unexpected in case their student is forced to withdraw from school due to a severe injury or illness.
For most of the 20 million college students and their families, the financial loss of an entire college semester is a significant enough burden to break the bank. Tens of thousands of dollars are on the line, and college families are wise 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 most significant financial risks will prepare you for the unexpected.
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.
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:
Many students arrive at college with ongoing chronic conditions that may interfere with their studies, such as anxiety and depression. GradGuard’s Tuition Insurance covers controlled pre-existing conditions for medically cleared students to attend school.
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 dramatically 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 families’ investments when paying for college.
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.
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 investments from the unexpected.
By working with more than 400 colleges and universities nationwide, GradGuard can 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 accompanying 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 frequently happen, 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.
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.
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
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!
Paying for college can be a challenge but thanks to a new innovative college search tool, GradGuard provides a convenient gateway to the relevant protection college students need.
The average published tuition and fees for full-time four-year undergraduates for 2018-19 is $36,890 for private non-profit universities, according to the College Board’s Trends in College Pricing. In total, more than 20 million students and their families invest an estimated $500 billion annually in tuition, academic fees, student housing, and related expenses.
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’s new search tool makes it easy for families to find the insurance protection they need to protect their college student”, said Bob Soza, Chairman of College Parents of America.
The GradGuard search tool provides an easy way for families to find and purchase renters and tuition insurance programs designed just for their college or university.
“When you consider the facts,” co-founder of GradGuard, John Fees states, “It’s smart for college families to consider how to protect their student and the investment they are making in higher education.”
The
Need for College Renters Insurance
College students need to consider protecting themselves with renters insurance. According to reports
from the 2017 Clery Act, colleges and universities reported 18,458 burglaries
and robberies. During the same year, campuses reported 1,830 fires within
student housing.
While risks such as theft, burglary, and campus fires are an ongoing problem on many college campuses, the good news is that there is a renters insurance policy that is designed just for college students. GradGuard’s college renters insurance contains an exclusive student endorsement that features a low-deductible, replacement coverage and worldwide property coverage. For about $.50 cents a day, families can protect students against losses that could otherwise disrupt a semester, making renters insurance a must-have consideration for college families.
The
Need for College Tuition Insurance:
College families are also smart to consider protecting themselves with Tuition Insurance. A 2017 survey of
university bursars and health administrators confirmed that 84% of institutions
do not provide a 100% refund. Even if the school provides a 100% refund for
tuition, most schools do not refund academic fees or student housing.
Tuition insurance can provide up to 100% refund for your expenses if a student gets sick, injured or has to leave school due to a covered reason. Tuition insurance can help cover those costs without the added stress of a financial loss. Many tuition insurance plans provide coverage for not only tuition but also for expenses related to academic fees and student housing.
Research from the American College Health Association demonstrates that many student health issues including illnesses, accidents, and injuries are so serious that they can force a student to withdraw from classes.
“College families are often unaware that the investment they make in a college education can be at risk,” Fees continued. “From theft to student health, college students can be vulnerable to real financial losses that can disrupt their education. GradGuard’s search tool and unique insurance programs, however, make it convenient for college students and their families to protect their investment in higher education.”
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 were $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 backup 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.
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.
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:
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
As nearly 3 million new college students and their families prepare to start college this year, now is an excellent time for parents and students to examine important financial issues that can impact the entire family.
Students living independently for the first time may mistakenly believe that their parents’ homeowners insurance will protect them. There may be coverage for students who live on campus but in many cases, homeowners insurance contains high deductibles or eligibility requirements that may exclude certain claims, ultimately making it insufficient or inadequate for college students and their families.
Rental housing expert, Ben Hoglund, CPM, believes that it is incumbent upon student housing providers to educate their residents on the importance of adequate renters insurance protection. “They aren’t going to learn that in class,” proclaimed Hoglund.
Hoglund referenced a survey he conducted titled “Campus Housing Risk Mitigation Study” in which he researched the types, causes and monetary impact of property damage occurring on college campuses across the United States. The study also addressed student and housing provider awareness of available insurance products to mitigate these risks.
The findings show that:
Due to higher insurance deductibles and low collection rates on resident damages, private sector housing providers have become proactive in their efforts to mitigate property financial losses caused by resident carelessness and negligence.
GradGuard offers renters insurance that covers personal property loss in the case of fire, certain natural disasters, theft, and vandalism, and provides personal liability protection for bodily injuries to another person or for damages to another person’s property if an incident occurs within the rented residence or elsewhere. Check your policy for complete details and limitations, but in all cases get protected.
Appeared in the August 20, 2018, print edition as ‘Demand for Tuition Insurance Is Surging.’
‘The cost of college is driving this,’ ‘
Families cannot afford the loss of $30,000, John Fees – Co-Founder of GradGuard.
As college tuition rises so too has demand for insurance to cover what in many cases is among a family’s biggest investments.
For Mindy DiCostra, a tuition-insurance policy was a life-saver last year after her daughter withdrew mid-semester in her junior year at Marymount Manhattan College in New York following an allergic reaction to an anxiety medication.
Because Ms. DiCostra agreed to pay $238 for tuition insurance when doing paperwork for the school, she was eligible to receive a full reimbursement for the $16,000 in tuition she and her husband had paid for the semester.
“I had no idea how important it would be when I checked that box,” she said.
Tuition insurance protects families in case their son or daughter has to drop out of school past the point at which a school offers tuition reimbursement, usually around halfway through the semester. Driving the increased demand are higher college costs and, to a lesser extent, rising mental-health disorders among college students that have raised concerns among parents that their children may struggle away from home.
About 70,000 policies were written across the U.S. market last year, up from 20,000 five years ago, said John Fees, co-founder of GradGuard, which started selling tuition-reimbursement insurance seven years ago. It works with campuses including the University of Pennsylvania, Auburn University and New York University, its website says.
“The cost of college is driving this,” said Mr. Fees. “Families cannot afford the loss of $30,000.”
The average published tuition and fees at a private college has increased to $34,740 in 2017 from $15,160 in 1988 according to the College Board. The numbers are adjusted for inflation.
“I think a lot of families don’t fully grasp that if they have to withdraw midterm it can have a significant financial impact,” said Paige Lee Director of Tuition Insurance at Allianz. College is “the second largest investment most families will ever make” after a home.
Most schools have some sort of reimbursement policy but they generally don’t cover withdrawals during the second half of the semester. At Vanderbilt University, a student will be reimbursed for some portion of his or her tuition and room and board up until about halfway through the semester. After that, they don’t receive anything.
Tuition and housing at Vanderbilt costs about $59,000, and 80% of that can be reimbursed with insurance, which costs about $530, said Chris Cook, who oversees the financial accounts of students at the school.
Several companies provide tuition insurance, Most policies charge in the neighborhood of 1% of the cost of school. A semester that runs $30,000 would cost about $300. At least 200 schools now work with insurers, offering the coverage to families when the pay the tuition bill.
Liberty Mutual Insurance started offering tuition-reimbursement policies this year, in part because of consumer demand. When a student drops out mid-semester parents are often “very surprised to learn that you may not get anything back,” said Michele Chevalier, a senior director at Liberty Mutual.
Not everyone thinks the plans are necessary. Jodi Okun, a college financial adviser in Los Angeles, said she has so far steered her clients away from tuition insurance because she doesn’t feel it is necessary in most cases. However, she has but counseled them to be aware of the timeline for withdrawals, so if a student is struggling with a mental-health issue they can leave in time to recoup the cost.
“I tell them, make sure you know when the deadlines are, especially if they are going far away to school,” she said.
Plans don’t typically cover students who drop out for academic or disciplinary reasons but will for medical reasons. Generally, insurers don’t ask about pre-existing conditions, either mental or physical. The idea, GradGuard’s Mr. Fees said, is: “If a student is healthy enough to start to a semester, they qualify.”
Insurers say that the number of claims they receive citing mental health incidents has risen. As many as one in four students at some elite U.S. colleges are now classified as disabled, largely because of mental-health issues such as depression or anxiety, according to the National Center for Education Statistics and interviews with schools.
Carmen Duarte, a spokesperson for A.W.G. Dewar, Inc. which has been offering tuition-reimbursement policies since the 1930s, said claims have remained flat for physical-health incidents but increased for mental-health reasons. She said policies are most likely to be bought by families of first year students. Allianz Insurance, which began selling the policies in 2015, said about 20% of claims were for mental health and 70% were for physical health.
Write to Douglas Belkin at doug.belkin@wsj.com
Corrections & Amplifications
Michele Chevalier is a senior director at Liberty Mutual. An earlier version of this article misspelled her first name. (Aug. 19)
