If you are like most college parents, you are unaware if your college or university will provide a refund if your student is forced to withdraw mid-semester for health or medical reasons. In a 2017 survey of college officials, only 16% of schools reported providing 100% refunds.
That’s when tuition insurance can help. Tuition insurance provides a refund when a college or university may not. In addition, tuition insurance can provide a refund for more than just tuition and include payment for other academic expenses that are billed to students such as room and board or academic fees.
Be aware that there are multiple providers of tuition insurance – including Allianz, A.W. Dewars, GradGuard and Liberty Mutual, and each provider has unique features of their coverage.
What is useful to know is what has occurred for other college families. Indeed it is worth watching the video below to understand one family’s story of how checking the box for tuition insurance protected their investment. “Allianz Tuition Insurance was such a lifesaver. It should be an option on every college and university website,” – Mindy D., parent of a college student daughter who enrolled in GradGuard’s Tuition Protection Plan from Allianz.
Mindy D., a parent of a college student in the Northeast, learned about tuition insurance through her daughter’s university website. She and her husband decided it would be a good idea to protect their tuition investment, and this decision turned out to be a very fortunate one for their family.
Sadly, Mindy’s daughter had a severe allergic reaction to a medication she was taking during the school year, forcing her to withdraw from school to focus on her recovery. While the impact of withdrawal could have been severe financially, Allianz tuition insurance gave Mindy and her husband the peace of mind that they needed to help their daughter focus on her health.
In addition to this valuable testimonial, it is useful for families to also evaluate how your college or university refund policy. Unfortunately, as College Parents of America research and others has shown, many families are unaware of their college refund policy. Given that most schools do not provide a refund to students following the fifth week of classes, it can be costly for your student to withdraw to care for their health.
In fact, just the awareness of the potential financial loss can create extra stress for students during a period when they should focus on their health. As a result, it is smart for college parents and families to evaluate their campus refund policy and consider purchasing at least some amount of tuition insurance.