Why College Parents Should Understand Their Student's Refund Policy — Before It’s Too Late
What happens to your tuition dollars if your student gets sick, injured, or needs to withdraw mid-semester?
It’s a question many college parents don’t think to ask — until it’s too late. College is a significant financial investment, and just like any investment, it comes with risks. One of the most overlooked is the lack of a safety net when a student is forced to withdraw after the semester has already begun.
Most Refund Policies Don’t Go the Distance
Here’s the truth: most colleges and universities don’t provide full tuition refunds after the first few weeks of class. In fact, many schools follow a declining refund schedule where the refund percentage drops with each passing week, often offering nothing at all after the fifth week. Housing, fees, and other expenses? Those are rarely refundable under any circumstances.
Despite the high cost of attendance, there is no guarantee that families will get their money back if a student faces an unexpected illness, injury, or mental health condition that requires them to take time away from school.
Life Happens, Even in College
While every parent hopes their student will enjoy a smooth and successful college experience, the reality is that life doesn’t always go as planned. The rise in student mental health concerns, physical health challenges, and unpredictable personal situations means that college withdrawals are more common than you might think.
Whether it’s a concussion, a bout of mono, or a sudden mental health crisis, many of these conditions make it difficult, if not impossible, for a student to keep up with classes. Emotional stress and personal mental health reasons remain the top reasons why enrolled students consider stopping out of their coursework, according to a 2025 Gallup/Lumina Foundation study.
Without a clear understanding of the school’s refund policy, families can face the dual stress of managing a health crisis and losing thousands of dollars in non-refundable expenses.
What College Parents Can Do
Before your student heads to campus this fall, take these proactive steps:
Review the school’s refund policy.
Every college is different, but typically, no refunds are provided for tuition beyond the first few weeks of school. If the information isn’t clearly posted online, contact the bursar or the student financial services office for clarification.Discuss the “what ifs” with your student.
Open a conversation about what your student would do in the event of an illness or emergency. Being on the same page can help you both make informed decisions during stressful times.Consider tuition insurance.
If your family couldn’t easily afford the cost of an extra semester, it may be worth looking into tuition insurance, like the kind offered by GradGuard. For around 1-2% of the cost of tuition and fees, a plan can reimburse up to 100% of tuition, housing, and academic fees if your student has to withdraw for a covered reason.
More than 650 colleges and universities partner with GradGuard, which means you may even be able to purchase a plan directly through your student’s school portal. Just remember that tuition insurance must be purchased before the first day of classes.
To learn more about tuition insurance and how it works, visit gradguard.com/tuition.
