This is for a friend, as I have taken out this insurance for freshman year and again this year (as the school said kids can get mono, other sicknesses, yet alone not be able to handle this for whatever reason). Her husband does not like any debt and probably would balk at insurance. They are doing Lewis & Clark in Oregon. Her son took a gap year. For a few reasons (not drugs or anything like that) she seems very hesitant about sending him and/or his “true” feeling about wanting to go. I have had tuition insurance for years because my kids went to private school. They are solidly middle class and have savings (mostly in retirement funds)–dad is 71, just retired, mom works just part time and is younger. How seriously do the colleges pursue a semester or full year of tuition? I got the feeling a contract is a contract, and they will pursue you.
There are different policies in place at different schools. Financial consequences of withdrawal may vary at different points in the semester. Anyone can be taken out of the game by the unexpected. Tuition is often paid up front. Daughter had mono that started finals week, freshman year. She had a moderate case and was on top of things pre-sickness, so she could get it done. In her case, all profs said they would flex with finals timing for her if needed, including ones who had zero re-scheduling for exams policies (apparently because of her performance/attitude in their class). Not something any of us would have wanted to count on happening. Mono is a lot less ambiguous than some of what can interrupt studies, also. I took both my kids’ colleges at their word for tuition policies.
We always pay tuition insurance and have used it twice, saving thousands that we would have lost. You have to prove the withdrawal is for medical reasons of course. This sounds like a situation that might call for it. You don’t mention this but if the son has any depression or anxiety or other diagnosis, he should submit documentation to the disabilities office. if he does then need to leave, that documentation will be helpful with the inisurance company.
What does pursue mean? When you get a bill, there is typically a very well written summary of what is due when, and what is refundable depending on the date of withdrawal. Getting what is “owed” to you, i.e. your kid withdraws first week of the semester, so the billing statement says “if you withdraw by September 2 we will refund you 80%” is very easy. Getting that last 20%- don’t count on it. The college has foregone the opportunity to sell that seat/bed to another student, and has incurred costs to enroll the kid, register for classes, etc.
If you are asking can you get a full refund midway through the semester if a kid drops out- the college’s answer is “that’s what tuition insurance is for”. I have never heard of a family getting a full refund from the college itself for a midway withdrawal if they did not have insurance.
Not sure why their aversion to debt is relevant here.
If the family can afford to call it a loss if the kid withdraws right before finals- then they don’t need insurance. If they can’t- well, that’s what insurance is for.
I have also never heard of a college “pursuing” you for next semester however. Enrollment is typically done semester by semester, which is how you are billed. You don’t need to commit to next Spring right now- typically those bills will go out in December which is when the payment is due. Your kid decides not to go back in the Spring- kid either takes a leave of absence (no bill will be sent) or withdraws (no bill will be sent) EXCEPT that there may be a housing deposit required in order to save a spot for the following Fall.
They don’t have to “pursue” you because you are paid in full before you start each semester. So the parents will lose the money if their son does not complete the semester.
So far I’ve paid for 12 semesters of tuition insurance and have made one claim. I’m in the black!
Don’t let them leave home without it!
How does one aquire tuition insurance for a student?
The school sent us an advertisement of a company which is in such tuition insurance business by snail mail. There is a form to fill out. You fill out the form and write a check and mail the form and the check to that company. Done.
I have no experience in a claim.
This kind of insurance is much easier to purchase (and inexpensive) than to purchase an insurance for your valuable item like a violin, etc., which requires an objective appraisal from another reputable appraisal company.
With my older daughter, we did not get tuition insurance. She does not tend to get sick. She graduated with no issues.
With my younger one, we did. She is the one who has been in a car accident, gotten mono, broke her elbow, etc.
I personally got pneumonia and another time was in a car accident while in college. Both times I was able to finish most courses and take a couple of incompletes which I finished up (mostly taking finals) when I got back the next semester.
Try searching for tuition insurance on your college’s website.
I’m wavering on this one. Read a few articles which make it a ‘depends’ decision. I am taking separate personal insurance to cover theft and damage of valuables and that seems recommended and a good value.
Just wanted everyone to know we purchased both renters insurance and tuition insurance for our son. We had to file a claim and it was easy and hassle free! Will will make sure to purchase both for the remaining two years.
Any tips for finding, evaluating and purchasing tuition insurance?
Our college had a link to www.gradguard.com/
After child withdrew near end of semester for medical reasons ,and we lost that semester’s costs, we bought tuition insurance from Dewar’s. When child had to withdraw again (finally learned that lesson), we were able to recover 100% of tuition and 85% of room & board. If your school offers it, I highly recommend it. The cost was relatively low, just a couple of hundred dollars.
My pups got significant need based aid, so our out of pocket tuition cost has been very minimal. For us, it did not make financial sense to get tuition insurance.
Doesn’t need-based aid get cancelled with a full withdrawal, depending on date of withdrawal? Then you get the full bill? Unsure.
As it was explained to me, need based aid was guaranteed for 8 semesters. A student who needs a temporary withdrawal could re-apply for aid upon return, and depending on the circumstances, get additional aid for a summer term, etc. I was told that for my pups at Columbia and Stanford, when they have had students take a temporary medical leave, for example, the student will work with their advisor and/or professors to come up with the best solution, sometimes including summer study, etc.
The tuition insurance only covers what you paid out of pocket, so while it would be a potential small hit to us, it would be minimal compared to the full-pay families.
Since the premium charged includes a portion for the insurer’s admin/retention as well as a portion for the risk, for us, the math didn’t seem to work out. We know we are taking a small risk that our pups will graduate on time.
As I recall (and my memory is vague on this) if we were paying $60K, we could probably afford an additional $800-$900 or so for tuition insurance. But it did not make sense for us to pay $300-$400 for $6000 of coverage.
I’m wondering how insurance plays out when student or parent loans are involved for tuition and room/board.
Has anybody found a company that sells tuition insurance for schools that do not offer it?
If you have a kid with anxiety, depression, or any other illness that can flare up, tuition insurance is totally worth it. We are full pay at two expensive LACs. We’d lose a ton of money if the kids had to withdraw for any reason.
ETA: one kid does have a merit scholarship, but we’d be on the hook for the rest if he withdrew.