Just the Facts: Tuition Insurance
College tuition costs continue to rise across the country at many universities and institutions. As they do, many parents and students can expect to pay a very heavy price to complete their education. With so many variables in life, however, some are looking to protect their educational investments.
Tuition refund insurance, also known as just tuition insurance, is one such investment some parents and students make. Some colleges include tuition insurance in the tuition plan as an option for some students. Tuition insurance reimburses a student or his/her family if the student has to withdraw from college due to an illness.
Typical tuition insurance plans cover a student’s withdrawal from college due to mental health issues, medical problems, serious injuries, psychological conditions, or death. Third-party companies and some colleges offer this option to help parents recoup losses due to withdrawal. It would be a waste to invest $30,000 of hard-earned and hard-saved money only to risk losing much of it later.
In many cases, almost 100 percent of paid tuition, books, fees, and room and board can be returned under this type of insurance. In other cases, schools will reimburse a certain percentage less than what covers the weeks the student attended. For example, if a student withdraws after three weeks of school and the college reimburses 60 percent of the payment, the insurance would cover the leftover 40 percent.
It’s important to know when you’re making a good investment and when you’re being sold a false sense of security. Here are some things to know about tuition insurance.
Tuition insurance typically is event specific. This means it will cover withdrawal from school due to a serious health issue or medical condition. [Be sure to ask about specificities surrounding pre-existing health conditions as some insurance providers will follow certain rules and have different pricing scales for that].
Compared to other forms of insurance and already high tuition, this type of insurance is considerably expensive because it is for a rare occasion which only means probably 1 out of 1,000 students or even 1 out of 2,500 students at a university may need it.
There are other reasons students drop out or withdraw too. So for example, if you find it difficult to adjust to college life, don’t like the school choice, or are making poor grades, this insurance likely won’t help you.
Tuition insurance plans generally come in two forms: coverage of tuition and fees only and coverage of tuition, fees, and room and board.
According to College Board, tuition for a public four-year college for in-state students is around $9,410.00; for a public four-year college for out-of-state students, approximately $23,890; and for a private four-year college, approximately $32,410.
So you can imagine what the reimbursement might be like if you fall ill while in college. If you do opt for such a plan, be sure to read the fine print and know what you’re getting and exactly what it covers — and what it does not cover.
Some experts agree that tuition insurance is not a good return on investment. While it may provide some security in the event of a “what if” situation, it may turn out that you never need to use it or that it doesn’t cover as much of your expenses as you would like or need.
If current illness or potential reoccurring illness is a concern, you would first want to look at the school’s refund policy. Some schools have it and some schools don’t but it doesn’t hurt to ask questions. If it is less of a benefit after careful thought, it may just be an extra expense that you don’t need.
Tuition insurance policies are offered through some select colleges and universities or through third-party plans. Only a few insurance groups seem to offer such plans. Here are some companies offering tuition insurance:
GradGuard Tuition Assistance is the only company that offers both school specific and individual policies. In conjunction with College Parents of America, families who are members of CPOA can enroll at any time during the school year. Annual coverage begins at $5,000 and runs up to $50,000. CPOA offers $5,000 automatically with membership so if your parents are members, this will work well and it is useful if $5,000 is all you need.
GradGuard is available through more than 200 colleges and universities. These school-based programs often contain unique features or pricing. Visit GradGuard to see if your school offers a program or choose from the generic policy available to all students attending 4-year non-profit institutions
Also at GradGuard, if your parent or family purchases $15,000 in tuition insurance coverage, you will receive the Student Protection Plan which includes protection against other damages or disasters. For example, if your MacBook Air is stolen from your dorm room, it can be replaced or you will be reimbursed for the total. The SPP also assumes protection for things such as virus damage to computers and physical damage [Do not confuse this with renters insurance, health insurance, and car insurance.]
Other companies include A.W.G. Dewar Inc. Nearly 200 colleges and over 1,000 private schools at the elementary and secondary level use Dewar as their tuition insurance provider. The real benefit here is that they offer 100 percent coverage for withdrawals that are medically induced.
Allianz Tuition Insurance provides reimbursement for tuition, room and board, and fees, even if you have to withdraw from school in the middle of the semester. This is also a rare instance in which the company will provide assistance if you are struggling academically or encounter a non-medical situation in which you are prevented from succeeding in college.
Paying for college is a huge expense and an even bigger responsibility. Before you apply for tuition insurance, be sure to read the fine print and weigh whether the investment will be worth it.
Apply to Write for Uloop NewsJoin the Uloop News Team
Discuss This Article
More Uloop Campus Life Articles
UNIVERSITY OF MICHIGAN INSURANCE LISTINGSSee all UNIVERSITY OF MICHIGAN Insurance Listings
UNIVERSITY OF MICHIGAN Insurance Listings
WRITE FOR ULOOPApply to Write for Uloop News
GET TOP STORIES DELIVERED WEEKLY
TOP 5 NEWS ARTICLES
BROWSE OTHER COLLEGES
- By CollegeCentral Michigan UniversityEastern Michigan UniversityGrand Valley State UniversityUniversity of MichiganMichigan State UniversityWayne State UniversityWestern Michigan UniversityOakland UniversityDavenport UniversityFerris State UniversityAquinas CollegeDelta CollegeLansing Community CollegeMontcalm Community CollegeNorthwestern Michigan CollegeNorthern Michigan UniversityAdrian CollegeAlbion CollegeAlma CollegeAndrews UniversityBaker CollegeCalvin CollegeCollege for Creative StudiesCornerstone UniversityHope CollegeKalamazoo CollegeKettering UniversityLake Superior State UniversityLawrence Technological UniversityMadonna UniversityMarygrove CollegeMichigan Technological UniversityNorthwood UniversityOlivet CollegeRochester CollegeSaginaw Valley State UniversitySiena Heights UniversitySpring Arbor UniversityThomas M. Cooley Law SchoolUniversity of Detroit MercyUniversity of Michigan-DearbornUniversity of Michigan-FlintWalsh College of Accountancy and BusinessGrand Rapids Community CollegeWashtenaw Community CollegeKalamazoo Valley Community CollegeFinlandia UniversityAlpena Community College Bay De Noc Community CollegeBay Mills Community College Glen Oaks Community College Gogebic Community College Henry Ford CollegeJackson CollegeKellogg Community College Kirtland Community College Lake Michigan College Macomb Community College Mid Michigan Community College Mott Community College Muskegon Community College North Central Michigan College Oakland Community College Oakland Community College- Auburn HillsOakland Community College- Highland LakesOakland Community College- Royal OakSchoolcraft College Southwestern Michigan College St Clair County Community CollegeWayne County Community College DistrictWest Shore Community College Abcott InstituteAnn Arbor Institute of Massage TherapyBaker College Center for Graduate StudiesBaker College of Allen ParkBaker College of CadillacBaker College of Clinton TownshipBaker College of JacksonBaker College of OwossoBaker College of Port HuronBayshire Academy of Beauty Craft IncBlue Water College of Cosmetology IncBrighton Institute of CosmetologyCadillac Institute of CosmetologyCalvin Theological SeminaryCareer Quest Learning Centers-LansingCarnegie InstituteCleary UniversityCranbrook Academy of ArtDavenport University - Treasury Site DimondaleDavenport University-Battle Creek LocationDavenport University-Flint LocationDavenport University-Grand Rapids DowntownDavenport University-Holland LocationDavenport University-Kalamazoo LocationDavenport University-Lansing LocationDavenport University-Livonia LocationDavenport University-Midland LocationDavenport University-Saginaw LocationDavenport University-Traverse City LocationDavenport University-Warren LocationDavid Pressley School of CosmetologyDeVry University-MichiganDorsey Business Schools-DearbornDorsey Business Schools-LansingDorsey Business Schools-Madison HeightsDorsey Business Schools-RosevilleDorsey Business Schools-SaginawDorsey Business Schools-SouthgateDorsey Business Schools-Waterford PontiacDorsey Business Schools-WayneDouglas J Aveda InstituteEcumenical Theological SeminaryEmpire Beauty School-MichiganEverest Institute-DearbornEverest Institute-DetroitEverest Institute-Grand RapidsEverest Institute-KalamazooEverest Institute-SouthfieldExcel Academies of CosmetologyExcel Academies of Cosmetology-TroyFlint Institute of Barbering IncFocus-Hope Information Technologies CenterFrench Academy of CosmetologyGallery College of BeautyGreat Lakes Christian CollegeHillsdale Beauty CollegeHoughton Lake Institute of CosmetologyIn Session Arts of Cosmetology Beauty SchoolInternational Cosmetology AcademyITT Technical Institute-CantonITT Technical Institute-Swartz CreekITT Technical Institute-TroyKeweenaw Bay Ojibwa Community CollegeKuyper CollegeM J Murphy Beauty College of Mount PleasantManthano Christian CollegeMarketti Academy of CosmetologyMichigan Barber School IncMichigan Career and Technical InstituteMichigan State University-College of LawMoody Theological Seminary and Graduate School--MichiganP&A Scholars Beauty SchoolPaul Mitchell the School-EscanabaPaul Mitchell the School-MichiganProtege AcademyRegency Beauty Institute-LansingRoss Medical Education Center-Ann ArborRoss Medical Education Center-BrightonRoss Medical Education Center-CantonRoss Medical Education Center-DavisonRoss Medical Education Center-LansingRoss Medical Education Center-New BaltimoreRoss Medical Education Center-PortageRoss Medical Education Center-TaylorSacred Heart Major SeminarySalon AcademySchool of Missionary Aviation TechnologySharps Academy of Hair StylingSouth University-NoviTaylortown School of Beauty IncThe Art Institute of MichiganThe Salon Spa AcademyTwin City Beauty CollegeWest Michigan College of Barbering and BeautyWestern Theological SeminaryYeshiva Gedolah of Greater Detroit
- By State
- By City