Many college parents have been asking us about tuition insurance. Tuition insurance is an affordable form of protection that reimburses a college student / family if they are forced to complete a withdrawal from college due to a covered reason.
We believe protecting the investment of college families is so important that College Parents of America includes $5,000 of annual tuition refund insurance within our annual paid memberships. This isn’t a sales pitch for membership, just a reminder that we know families are concerned about protecting their investment in college. Despite families not being aware that only 20%of colleges and universities report providing 100% refunds for students who complete a medical withdrawal, the awareness of the value of tuition insurance continues to grow.
Part of the growing interest relates to new forms of tuition insurance that are now available through Allianz and GradGuard. A.W. Dewar’s has offered tuition refund insurance for 80+ years, but these new providers have entered developed new approaches to helping families protect the nearly $500 billion invested in a college education annually.
Typical tuition insurance programs, which only offer tuition refunds when a student withdraws due to illness, injury, psychological conditions or death. Allianz Tuition Insurance’s Advantage plan, however, also covers withdrawal for any unforeseen reason. Here are a few more situations that could cause your child to withdraw, as well as some advice for parents.
Coverage may vary by underwriter so be sure to read the policy for complete details. However, according to Allianz – these are a some essential elements that are covered including:
Homesickness, Stress and Other Health Issues:
Allianz reminds college parents that “After the tearful goodbyes, you expected your student to thrive in college and speedily earn her degree. Instead, she confides that she’s homesick, overwhelmed and thinking about withdrawing. She’s not alone; dropping out of college is more common than you think.
College stress can be overwhelming: Can college stress really be that bad? Parents may remember their own college years as a carefree time when they had few responsibilities other than getting to class. Things are different for college students now.
“We have students in this generation that are working and growing up in a very fast-paced society. There’s additional stressors, more things that they’re carrying on their shoulders,” Mickey Sharma, director of the Office of Student Life Counseling at Ohio State, recently told “PBS Newshour.”3 A 2014 study of more than 150,000 freshmen found that 34.6 percent “felt overwhelmed” by schoolwork and other commitments.”
If your student starts talking about withdrawing from school because of stress, encourage him to speak with an adviser or counselor first. It is important to realize that stress and anxiety are often not “covered reasons”. In fact, mental health related illnesses must be serious. Check your policy for details, but realize that tuition insurance may provide only partial coverage for mental health issues or may require proof of hospitalization within 30 days of completing a withdrawal.
However, if you are worried about stress or motivation factors of your student, then you may want to also consider the Allianz Tuition Insurance’s Advantage plan that can reimburse up to 50 percent of his nonrefundable tuition costs. It is not drop-out insurance, but the coverage is substantial and provides protection for families that have particular concerns for their student.
And there are other factors that may disrupt a college education including many student health related incidents.
Student Health – Accidents & Illnesses:
According to the 2015 American College Health Association annual survey of more than 15,000 students, there are many student health issues that may also disrupt your student’s education. According to GradGuard, most all accidents and illnesses are likely to be covered as long as tuition insurance has been purchased prior to the start of school and that a medical withdrawal has been confirmed by your college or university.