Can Your Family Afford the Cost of an Extra Semester?
What Every College Parent Needs to Know About Protecting Their Student’s Education Investment
As a parent, sending your student off to college is both exciting and nerve-wracking. You've spent years preparing for this moment and likely a significant amount of money, too. But what happens if your student needs to take an unexpected leave due to illness, injury, or a mental health condition?
The reality is that an extra semester of college, whether caused by a medical withdrawal or personal emergency, can create a financial burden that few families are prepared to shoulder.
The True Cost of Falling Behind
The cost of college has steadily increased, as has the financial impact of taking longer to graduate. According to the College Board, the average 2024-25 tuition and fees for full-time students are:
Public four-year in-state: $11,610
Public four-year out-of-state: $30,780
Private nonprofit four-year: $43,350
These figures don’t include housing, meals, books, or other living expenses, which can push the cost of an additional semester into the tens of thousands of dollars.
But here’s the catch: most colleges and universities do not offer refunds for tuition or fees beyond the first few weeks of the semester. Housing and other charges are rarely refundable at all. So, if your student has to withdraw mid-semester, your investment could be at risk.
Illness, Injury, and Mental Health Conditions Are Common — and Disruptive
No one likes to think about worst-case scenarios, but the truth is that unexpected events can happen to anyone. According to the American College Health Association, during the 2023-24 academic year, students reported being diagnosed with serious illnesses and injuries such as:
Anxiety: 35.2%
Depression: 26.7%
Flu: 7.2%
Concussion: 1.5%
Mononucleosis: 0.8%
These conditions can seriously disrupt a student’s ability to keep up with coursework or remain enrolled. And when withdrawal becomes necessary, families are often left bearing the cost without any form of reimbursement.
What Is Tuition Insurance and Why Should Parents Consider It?
Tuition insurance is a valuable tool that helps families protect their financial investment in higher education. Plans like those offered by GradGuard can reimburse up to 100% of tuition, housing, and fees if a student has to withdraw for a covered reason, such as:
Serious illness or injury
A diagnosed mental health condition
The involuntary job loss of a tuition payer (depending on the plan)
According to a 2023 GradGuard survey, nearly 75% of students who took a covered medical withdrawal re-enrolled or planned to return to school. For those families, tuition insurance helped transform a potential financial disaster into a temporary detour, providing the breathing room to recover and return.
Why Tuition Insurance Makes Sense Now More Than Ever
Thirty years ago, tuition insurance may have seemed unnecessary. But with higher education costs at an all-time high and refund policies becoming increasingly restrictive, it’s a smart investment for today’s college families.
Here’s what parents should do:
Review the school’s refund policy. Many schools offer little to no refund after the fifth week of classes. If it’s unclear, contact the bursar’s office or student financial services to ask how much of your tuition would be refunded if your student had to withdraw mid-semester.
Ask yourself: Could we afford to pay for another semester? If the answer is no, or even “not comfortably”, then tuition insurance is worth considering.
Look into GradGuard Tuition Insurance. Many colleges partner with GradGuard to offer discounted plans. For as little as around 1-2% of the total cost of tuition, housing, and fees, your family can get financial protection in case of a covered withdrawal.
Just remember: Tuition insurance must be purchased before the start of classes.
Peace of Mind for Parents and Students
As a parent, you’re already doing everything you can to support your student’s success. Tuition insurance gives you one more tool to help safeguard their future and your finances. Even if your student never needs it, the peace of mind can be worth every penny.
Learn more or find a plan that fits your family at gradguard.com/tuition.
Terms, conditions, and exclusions apply, including for pre-existing conditions. Plans only available to U.S. residents and may not be available in all jurisdictions. They are recommended and provided by Grad Guard, a service of Next Generation Insurance Group, LLC (NGI), the licensed agent for all insurance programs. AGA Service Company, dba Allianz Global Assistance (AGA), compensates GradGuard, their national program management partner, for the marketing, distribution and administration of the products. Insurance plans include insurance benefits and assistance services. Pricing may vary by state. Insurance benefits are underwritten by Jefferson Insurance Company (NY, Administrative Office 9950 Mayland Drive, Richmond, VA 23233) rated “A+” (Superior) by A.M. Best Co., A+ (Superior) is the 2nd highest standard of A.M. Best’s 13 Financial Strength Ratings. Non-insurance benefits/services are provided by AGA Service Company. Claims are administered by Allianz Global Assistance (AGA). Allianz Global Assistance is a mark of AGA Service Company or its affiliates. AGA Service Company is an affiliate of Jefferson Insurance Company. Plans include insurance benefits and assistance services. Except as expressly provided for under the plan, consumer is responsible for charges incurred from outside vendors. Contact AGA Service Company at 888-427-5045 or 9950 Mayland Dr., Richmond, VA 23233 or tuition@allianzassistance.com. Schools do not receive compensation for purchase.
