Everyone can benefit from having at least a minimum level of tuition refund insurance. According to a study by Student Monitor, "27% of students either themselves experienced or had a close friend who experienced a mid-semester withdrawal from college due to a student medical condition or a death in their immediate family." Today's high cost of education and strict refund policies of colleges, purchasing at least some tuition refund insurance is a good decision. |
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Key Questions to Consider When Purchasing Tuition Refund Insurance: 1) What is my schools medical withdrawal policy? According to a study by College Parents of America, apparently 75% of schools do not refund anything after the 25th day of classes. 2) What will my school refund in the case of a medical withdrawal? Most colleges never refund the cost of books, academic fees or room and board. 3) How much tuition refund insurance do I need? This is a highly personal question but depends on the answers to questions 1 and 2. Given that a student is likely to spend approximately $500 on books, $500 or more in academic fees and if they live on campus thousands more, it is prudent to have a minimum of $2,500 of tuition refund insurance per term. 4) If my student has to complete a medical withdrawal can I afford the financial loss? Students may face an unexpected financial hardship that prevents them from returning to college. Families may face not only a financial loss, but may also have to fund additional semesters of coursework. 5) When can I purchase Tuition Refund Insurance? School sponsored plans by Dewars require students to purchase the policy before the start of the academic term. However, the GradGuard Tuition Refund Insurance plan may be purchased at anytime. 6) Is it true that tuition insurance is unnecessary for ordinarily healthy students? The health of a student should not determine if you need tuition refund insurance. Tuition insurance is not only for the illness related to a student but also disability, injuries and death that can and do occur to healthy students. The primary factor for determining your need for tuition refund insurance isn't about the health of a student, but is more related to the medical withdrawal and refund policy of your college. 7) Why don't more colleges offer tuition refund insurance? Most often colleges do not want to bring attention to their refund policies or increase the anxiety of parents or students prior to enrolling. Secondly the tuition refund insurance that has long been available to elite private colleges has required greater involvement by the college. With the newly available tuition refund insurance by GradGuard, colleges can now offer the insurance without any new administrative effort. As a result, students attending public colleges and universities are now able to insure against the financial loss related to unexpected illness, injury or death. |
Companies offering Tuition Refund Insurance Tuition refund insurance policies are offered either through selected colleges or through group plans. The group plans are available for use at any accredited college. Only one company offers a group policy. GradGuard Tuition Insurance is a group tuition refund insurance policy offered in conjunction with membership in College Parents of America. Families can enroll at any time (not just at the beginning of the academic year) and can pick the amount of annual coverage from $5,000 to $50,000 in $5,000 increments. (Coverage for each term is half the annual coverage.) $5,000 in coverage is automatically provided with membership in College Parents of America. Families who purchase at least $15,000 in coverage also receive the "Student Protection Plan" which includes other benefits such as emergency medical evacuation. All policy levels include identity protection and resolution services. The policy provides 100% coverage for medical disability withdrawal or for death of the tuition payer or student, and 75% coverage for withdrawal due to emotional, nervous or mental disorders, up to the coverage limits. The policy is underwritten by Markel Insurance. In addition these two companies offer tuition refund insurance through colleges:
 We don't endorse any one product or service, but include GradGuard because it is the only tuition refund insurance plan available to students attending any accredited college or university. According to the GradGuard web site, the GradGuard tuition refund insurance plan provides up to $50,000 of annual insurance. Unlike other school sponsored plans, it can be purchased at any time during an academic term. It is available to members of College Parents of America and also includes additional insurance coverage in something called the Student Protection Plan |
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