<p>If DS gets sick and has to withdraw mid-semester, are we on the hook for ALL of his grant money? We just got the envelope in the mail for tuition insurance from Dewars and I would never consider getting this insurance but his grant amount is around $30K per semester and I've read enough here about kids getting sick, etc.. If we had to pay back all of DS's financial aid, yikes! He has school grants only, no loans or federal grants. (The school's withdraw policy shows a 40% refund at week 8 so what happens if DS gets mono or something in week 9 or 10?)</p>
<p>Thanks in advance for your help!</p>
<p>I really doubt that a student who is awarded a need based grant will be expected to pay it back if he isnt able to finish.</p>
<p>I bet if you ask they will say the same thing.</p>
<p>That refund you mention is for paying students…not for grant students.</p>
<p>The insurance is to give you a refund for costs YOU pay. If you are not paying those costs, you would not receive any money back.</p>
<p>I did some research before posting my question and found some older posts that said things like this: </p>
<p>"The reason I am considering it is that my son receives financial aid, but if he has a medical withdrawal, any grant aid that went toward tuition (and it goes toward tuition first, so in our case it’s all his grant aid) gets taken back and we’d be on the hook for his full billed costs (minus any refund if whatever it is happens early)… but we’d suddenly be on the hook for full freight, essentially, which we can’t afford (or we wouldn’t be on financial aid in the first place). "</p>
<p>This is why I asked but now I see that all schools have different policies. I was not worried about getting any refund but worried about having to PAYBACK grant money given to son. All schools seem to require payback of federal grants and loans. Finaid site says: “The federal regulations in 34 CFR 668.22 concerning the return of “unearned” federal student aid, nicknamed R2T4, are rather complicated. The gist is that federal student aid that was or could have been disbursed is earned pro-rata based on the percentage of the period of enrollment that was completed through the date of withdrawal.” </p>
<p>Some schools, like USC, clearly spell out their policy and require payback of institutional grants and scholarships. Yes, they require PAYBACK of financial aid of instituitional grants and scholarships! </p>
<p>DS’s school doesn’t have information available online so I’ll have to call and find out their specific policy before making a decision. Again, it seems to be a complex math formula to determine risk vs aid and days of attendance before a medical withdraw. The days left in semester also seem to determine if kid can get an incomplete. Tricky stuff again but what isn’t regarding college? Most of the posts that deal with kids who withdraw seem to work out getting incompletes if they are sick late in the year so it looks like the majority of schools work with the kids but surprisingly some schools automatically tack on the tuition insurance and one has to opt out each semester. </p>
<p>No cut and dried answer, I guess but thank you for all of your replies!</p>