For many college families, higher education is one of the most significant investments they will ever make. With so much money at stake, college parents need to make a plan for the unexpected in case their student is forced to withdraw from school due to a severe injury or illness.
What is Tuition Insurance?
For most of the 20 million college students and their families, the financial loss of an entire college semester is a significant enough burden to break the bank. Tens of thousands of dollars are on the line, and college families are wise to consider purchasing tuition insurance before the start of the semester. Tuition Insurance provides a refund for tuition, room and board, and academic fees when schools may not in the event of a covered medical withdrawal. It’s not drop-out insurance, and students must completely withdraw from classes due to a covered injury or illness.
College is a fun time to meet new people, create memorable experiences, and of course, learn. That’s not to say it doesn’t come without risks. Knowing some of the most significant financial risks will prepare you for the unexpected.
Tuition Insurance: What’s Covered?
Tuition insurance may not have been essential for all families to consider 30 years ago when college was more widely affordable, and school refunds were more generous. But things have changed. Given the high cost of college and less generous refund policies, tuition insurance is an important benefit that colleges and universities can offer to protect their students.
Coverage for Major Injuries and Illnesses, Including Covid-19
Even before the pandemic, ordinary medical conditions, not just Covid-19, are a source of large financial losses for both students and schools. GradGuard is the only major provider in the country to cover withdrawals due to becoming ill with Covid-19.
The 2020 National Student Health Assessment from the American College Health Association data reveals some of the ordinary risks college students and their families face today and the impact it has on degree completion:
- Concussion: 2.2%
- Mononucleosis (mono): 56.9%
- Stress: 43.7%
- Death of a friend/family member: 40.5%
- Influenza (flu) or flu-like illness: 50:4%
- Orthopedic injury (broken bone, fracture, sprain, etc): 2.5%
- Cold/virus or other respiratory illness: 42.1%
Many students arrive at college with ongoing chronic conditions that may interfere with their studies, such as anxiety and depression. GradGuard’s Tuition Insurance covers controlled pre-existing conditions for medically cleared students to attend school.
Mental Health Coverage Included
Last fall, college families and experts alike were most worried about students becoming ill with Covid-19. This year, the focus is on how the pandemic has dramatically impacted the mental health and well-being of college students.
GradGuard became the first and only program in the country to cover mental health as a condition. The growth in student mental health concerns looms as another risk to families’ investments when paying for college.
Among the troubling trends:
- 2020 report by the American College Health Association found more than half of nearly 9,000 students surveyed experienced anxiety or depression.
- A nationwide study published by the Journal of Adolescent Health found that rates of moderate to severe anxiety and depression among U.S. college students rose substantially over the last few years — from 18% and 23%, to 34% and 41%, respectively.
- 2020 survey by the American Council on Education found 68% of college and university presidents say student mental health and well-being is top concern.
Room and Board and Academic Fees are Also Covered
Tuition Insurance covers more than just the cost of tuition. GradGuard’s plans can also cover room and board and academic fees. Most higher education institutions only provide a partial refund of tuition during the first five weeks of a semester, and virtually no schools provide refunds for academic fees or housing.
More than 20 million college students are getting ready to head to campus in the fall. After an extraordinarily challenging year due to the pandemic, families are looking for ways to protect their investments from the unexpected.
By working with more than 400 colleges and universities nationwide, GradGuard can offer students and their families comprehensive and affordable coverage for up to 100% of the cost of college, including student housing, tuition, and academic fees. Each policy also includes Student Life Assistance, which helps families through the logistics accompanying an unexpected student withdrawal. GradGuard’s mission is all about helping more students graduate. With Tuition Insurance, students who are forced to withdraw are given the rare opportunity for a do-over.
Major or chronic illnesses, accidents, and injuries frequently happen, even to young and healthy college students. The good news is that college families can protect their investment in higher education by purchasing tuition insurance. Visit GradGuard.com/Tuition to see the plans available on your campus.
Terms, conditions, and exclusions (including for pre-existing conditions) apply. Plans only available to U.S. residents and may not be available in all jurisdictions. Recommended and provided by GradGuard, a service of Next Generation Insurance Group, LLC (NGI), the licensed agent for all insurance programs. 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 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). AGA and Allianz Tuition Insurance are marks 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 firstname.lastname@example.org .