For many college students, the idea of spending an extra semester in school can be financially daunting. An unexpected circumstance such as a serious illness or injury can extend your time in college, creating significant costs that can put a strain on your family’s finances and your future plans.
The High Cost of an Extra Semester
Between tuition, fees, housing, textbooks, and living expenses, the direct costs of an extra semester can easily add up to tens of thousands of dollars. According to the College Board, the average cost of tuition and fees for full-time students in 2023-24 were:
- Public four-year in-state: $11,260
- Public four-year out-of-state: $29,150
- Public two-year in-district: $3,990
- Private nonprofit four-year: $41,540
College is too important to leave unprotected. What happens to your investment if you get sick or injured and you’re forced to withdraw from school? A 2019 survey by HigherEd Study found that most colleges and universities don’t provide refunds for tuition beyond the first few weeks of classes, and virtually none provide refunds for housing and fees.
While no one likes to think about worst-case scenarios, the truth is that unexpected events can happen to anyone. According to the American College Health Association, more students during the 2022-2023 school year reported being diagnosed with serious illnesses and injuries such as:
- Anxiety: 34.99%
- Depression: 27.34%
- Cold/Virus: 19.63%
- Flu: 12.56%
- PTSD: 7.8%
- Concussion: 3.1%
- Long COVID: 2.39%
- Mononucleosis: 2.02%
The Benefits of Tuition Insurance
Many of the students who reported serious injuries and illnesses had to delay progress toward their degree, and some likely took a forced medical withdrawal. It’s important to know that student withdrawals are on the rise, as the National Student Clearinghouse reports 113,000 students took a leave of absence in 2021, including for medical reasons.
That’s where tuition insurance can help. For these students, tuition insurance can mean the difference between a temporary setback and a major financial blow. Tuition insurance plans, like those offered by GradGuard, can provide reimbursement for lost tuition, housing costs, and fees if you need to withdraw from school for a covered reason, such as a serious illness, injury, mental health condition, involuntary job loss of a tuition payer (depending on the plan), or other covered reason.
Tuition insurance can give college families the rare opportunity for a do-over, enabling students to return to school again when they are well. In fact, nearly 75% of students re-enroll or plan to re-enroll after a covered withdrawal, according to a 2023 GradGuard survey.
Even if you don’t end up needing to use your tuition insurance plan, the peace of mind it can provide can be invaluable. Knowing that most colleges and universities don’t provide refunds for withdrawals, you can have a financial safety net in place, allowing you to focus on your studies and your personal well-being without the added stress of worrying about money in the event of a forced withdrawal.
Why Tuition Insurance is a Smart Investment
Tuition insurance may not have been necessary 30 years ago. But due to rising costs and less generous refund policies, families are smart to consider purchasing tuition insurance.
- Make sure you understand your school’s refund policy. A majority of school refund policies don’t extend beyond the fifth week of the semester, and many don’t refund the full cost of tuition after the start of classes. If you can’t find it on your institution’s website, reach out to the bursar or student financial services department to see how much money is at risk.
- Ask yourself if you could afford the cost of an extra semester. Tuition insurance can provide up to 100% reimbursement for tuition, housing, and fees in the event of a covered withdrawal for a covered illness, injury, mental health, involuntary job loss of a tuition payer, depending on the plan, and other covered reasons. Tuition insurance can reimburse those costs and help a student return to school without the added stress of a financial loss.
- Consider purchasing tuition insurance through your institution. Check to see if your school offers GradGuard. That’s how you’ll save up to 50% off and get the best plan. For as low as around 1% of the cost of tuition, housing, and fees, you can protect your investment. Remember that plans can only be purchased prior to the start of classes.
Remember that your education is an investment in yourself and your future. While the costs of an extra semester can be daunting, the long-term value of a college degree is well worth it. By taking steps to protect your investment, such as understanding the risks of college life and considering purchasing tuition insurance, you can navigate the challenges of a potential extra semester with confidence. With GradGuard’s Tuition Insurance, you can have the peace of mind that comes with knowing you can be protected in the event of a serious covered injury, illness, or other covered reason. Find a tuition insurance plan that’s right for you 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.
