Life during college often comes with many ups and downs. Sometimes, life throws an unexpected curveball that requires students to withdraw from school mid-semester. If you’ve already paid for classes, you might not get a refund. That’s where tuition insurance can help.
Whether you are a parent or student, tuition insurance can be a worthwhile way to secure your investment.
In partnership with GradGuard, let’s take a look at five common reasons you should consider tuition insurance. GradGuard is a leading tuition insurance provider and they can help you protect your college financial investment.
Get a quote here and see how affordable tuition insurance can be >>
What Is Tuition Insurance?
Tuition insurance offers peace of mind for parents and students. If the student has to pull out of school during the semester due to a covered reason, tuition insurance can allow you to get your money back.
For example, let’s say you get sick. If you can’t continue classes and a doctor recommends you leave school entirely, your university might not reimburse the tuition bills you’ve already paid, let alone room and board costs. But if you have tuition insurance, you can file a claim to get reimbursed for the lost tuition, housing, and fees.
Tuition insurance tends to cover serious illnesses or injuries, mental health conditions, and death. It usually won’t cover things such as drug use, taking part in a riot, or participating in extremely risky activities.
Terms, conditions, and exclusions (including pre-existing conditions) apply. Take a look at GradGuard’s coverage to understand more.
5 Reasons To Use Tuition Insurance
If you are on the fence about getting tuition insurance, here are some reasons for buying this coverage.
1. Your School Likely Won’t Reimburse Your Tuition
Most colleges don’t offer a 100% tuition reimbursement to students who withdraw from the semester, even if it’s a medical withdrawal. Some schools offer tuition refunds on a sliding scale. So if you withdraw in the middle of the term, it’s unlikely you’ll get a full refund.
Since most families paying for college have made significant sacrifices to cover the cost, the lack of a refund can feel like a punch to your savings account.
If you want to protect your investment in college tuition, then a tuition insurance policy might be the right fit for your wallet.
2. You Might Get Sick
No one wants to get sick while in school, or ever. But if you are under the weather with a serious illness, you might need to withdraw from classes to focus on your recovery. If you have tuition insurance, you’ll be reimbursed for your expenses in that semester.
For example, I’ve known several students who had to withdraw for the semester due to mononucleosis. Without tuition insurance, they had to take the loss for the tuition costs. But you can avoid that painful financial situation with tuition insurance.
3. You Can Take Care Of Your Mental Health
College can be a stressful period for students, and many face significant mental health conditions, such as stress, depression, or anxiety. If a condition pushes you to withdraw from classes, tuition insurance protects you against the financial loss for that semester.
4. Support During A Crisis
If a student is forced to withdraw from classes, it’s possible that a personal or family crisis has factored into their decision.
Some tuition insurance policies, like those available through GradGuard, provide support to students and families during emergency situations. With GradGuard, plans include Student Life Assistance, which can help make travel arrangements for parents to visit their child in the hospital, make travel arrangements for a student to get home safely, and even handle transporting a vehicle back from college if they are too sick to make the drive.
Of course, no one wants to face a health or other crisis. But if your student faces a difficult situation, any assistance is always appreciated.
5. Reasonable Premiums Might Be Available
The exact costs of tuition insurance vary. But, on average, tuition insurance costs around 1-2% of the total tuition amount.
Since most students and parents are shelling out thousands of dollars for tuition each school year, protecting the investment with an affordable plan could make sense. But if you only want to cover a portion of your tuition costs, that’s an option with GradGuard to make your policy even more affordable.
Get a quote from GradGuard and see for yourself >>
@thecollegeinvestor Tuition insurance can be your safety net for college. Check out our video sponsor GradGuard in our bio link. 🎯. #sponsored #greenscreen #collegelife #collegehacks #tuition #collegestudent #collegegotmelike #moneytok #personalfinance ♬ original sound - The College Investor
Bottom Line
If you are paying for college out of pocket, a tuition insurance policy can protect your investment. That’s especially true if you are a parent cosigning on student loans for your child’s educational costs or a student paying their own way through school with limited resources.
For anyone considering tuition insurance, start by getting a quote with GradGuard today. Check out GradGuard here and see how affordable protecting your college investment can be.
Editor: Colin Graves Reviewed by: Robert Farrington
Sarah Sharkey is a personal finance writer who covers banking, credit, student loans, and insurance for The College Investor. She has written for leading financial outlets including Bankrate, Business Insider, and more, helping readers make confident choices about borrowing, saving, and building wealth.
Sarah holds both a bachelor’s and a master’s degree from the University of Florida, and her background in management and research informs her clear, practical approach to complex financial topics.