Why is required student health insurance not included in the COA?

Paying for College
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<p>I'm curious as to why required student health insurance is not included in the COA. I can see it not being included if the student's family has a plan that is acceptable to the college because the family is already paying for this insurance, it isn't an added expense. But how come it can't be added to the COA if there is not already an existing insurance plan that will work? I'm not looking for it to be covered with grant aid, but if it was part of the COA it would up the amount that could borrowed. I'm especially wondering because a computer can be included one time in the COA, you have to buy it first, show the receipts but then they adjust the COA. The school is Tulane, btw, though they tell me that insurance isn't figured into the COA at any school. (yes/no/maybe?). </p>

<p>Last year, I was caught off guard by this, so we took the school's plan, which was an excellent plan, but was also priced to pay for those excellent benefits. The premium this year is $2200 annually, which is $183 a month. Which doesn't sound like a ton, as there is no parent contribution in son's FA package, but those who have read my previous threads know that money is very tight in our household. </p>

<p>He had work study last year but didn't use it, 1st semester he had a hard time adjusting and second semester he took 19 solid hours with labs, so I didn't think it was a good idea. I was concerned they wouldn't include it in his package this year because he didn't use it, so we emailed to ask if they would include and they did. So his total package includes work study, stafford and perkins loans already. His FA package has a gap of 2500 for the year which is great, but that leaves the 2200 and the 2500 for me to try and come up with. That's less than $5000 for a whole year which again is great, so I'm not complaining there but at the same time that's nearly $400.00 a month. </p>

<p>Now, his meal plan and dorm aren't adjustable prices, he's required to live on campus and they don't use the most expensive dorm as part of the COA and the sophomore meal plans are the same price no matter which option he choses. (as a junior and senior he will have more flexibility). Books, personal expenses and travel are adjustable, however he was awarded $2500 in work study for the year, I'm not sure he can earn all that so I'm figuring a wash between work study and the adjustable expenses. (he has a summer job, but that's a question for another thread before we use that money), </p>

<p>Between the Perkins and the Staffords he's already pushing loan limits that I'm comfortable with (in fact I had hoped to be able to contribute enough where he didn't have to take that much in loans, I'm hoping for a total close to what his sister ended up with, a little less than $20,000, however he has higher earning potential, so there is a little wiggle room but if he takes $7000 a year he's looking at $28,000 and I think that's a limit I don't want him to cross). </p>

<p>I could take out a loan, my credit isn't compeltely shot due to my husband's stroke, but I took on a car payment this spring, (old car had nearly 300,000 miles and was worn out) so I'm not sure what that did to the credit, I know they factor debt limit in there. But, the best interest is on the educational loan products, but I can't borrow the $4700 because it's over the COA when they figure all his FA. </p>

<p>It'll be done, if all else fails, he does have some relatives that are willing and able to chip in, (that's how we managed the insurance last year), but it bothers me to have to ask. I'm shopping for insurance that'll work but won't cost so much so that will help some if I can figure out how that works, (what is acceptable vs what's not acceptable). </p>

<p>It just made me start wondering why the insurance isn't part of the COA. Anyone know?</p>

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<p>They probably don’t consider it as part of COA exactly because so many people have some type of insurance on their own. Does your family qualify for some type of state insurance or something? the cost through his school is pretty good, but I’m wondering if a state plan might be better or free? Do you have insurance for yourself too?</p>

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<p>Good luck. You also need to make sure that your health insurance meets the minimum standard for the college. To be honest, you may not find a plan with good benefits for less than you are paying the college. Plus those college plans usually cover the student anywhere so he would be covered at home and at school.</p>

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<p>COA is an average cost. The health insurance is averaged in with “other expenses”. That is the problem with averages. Those who have insurance have a zero cost and those who don’t have the full cost. From what I have seen with my sons’ peers most kids here are covered by their parents’ insurance or have other forms of insurance and don’t have to pay for the school coverage.</p>

<p>I think special note should be made of this premium in COAs because of the impact that line item can have on college costs. I don’t think that is an insignificant cost. I was caught unawares with that information, I remember, and it was a pain just opting out of it.</p>

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<p>I would guess that it is not included in COA because it is an expense that a responsbile person would have regardless of whether or not they attend college.</p>

<p>I’m a bit confused because you refer to the most expensive dorm on campus. In my experience, if a student with FA requests a lower price dorm but is assigned one with a higher price then the FA office will make up the difference. However, if they request the more expensive one (or a single) then they are on their own to cover the difference.</p>

<p>Finally, I would encourage him to take advantage of Work Study. Surely he can find 4-6 hours each week to work, and that would mean $200 every month. Also, many Work Study jobs are not demanding and would allow some study time while being paid.</p>

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<p>I agree with rmldad, your child needs to take a work study job. Sure, every student would love to just focus on school so they could achieve that ever sought after 4.0, but kids who need FA can’t afford that luxury. Work study jobs are as easy as it gets, and I am sure, even with 19 hours of class, your son found himself with plenty of free time when he could have been sitting at a desk handing out books, or doing something that would have also allowed him to study at the same time! He could earn enough to help off-set the cost of the medical insurance.</p>

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<p>Guess I wasn’t clear, son will be doing work study, but I’m not counting on that to pay the insurance, that will be for the books, misc supplies, his spending money etc…</p>

<p>And by the most expensive dorm, I just meant that the school did not figure the most expensive dorm into the COA so there is no savings to be had for the room and board portion of the COA. 2nd year students have to live on campus and the COA room cost is the least expensive dorm option. 2nd year students also have to have a specified meal plan and they are all priced the same, no matter which option he chooses. I just meant that there was not a lot of wiggle room in the COA, at least till he’s a junior and up. I have seen some colleges with what I view as COA on the high end, allowing for potential savings.</p>

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<p>The problem with the insurance we have is not that it won’t meet the schools requirements on the whole, the requirements are not for a policy with the same benefit level as the one the schools, but are basic, it’s that, and maybe it’s just in Texas, the coverage doesn’t work for out of state. The Texas policies that I’ve checked into (and this is for an individual policy, I do not have group coverage through work), either will not provide coverage or provide coverage at the out of network level, for a college student attending school in another state. He can be visiting another state and he’s covered in-network, but if he’s residing in another state, it won’t work. Maybe it’s different for group policies. On the plus side, same company, basically same benefits are considerably cheaper for him as an individual in Louisiana as opposed to him as an individual in Texas. Why I don’t know, maybe costs are cheaper in Louisiana, or maybe we in Texas use our policies more often. </p>

<p>Mostly I was just curious why, if it’s required and the family policy doesn’t work, the insurance is not considered part of the COA, but a computer can be, even if it’s not required.</p>

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<p>I’m not sure it <em>can’t;</em> I just know it isn’t routinely. Have you asked the school if they will?</p>

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<p>When a school is mailing bills to thousands of families, how would you expect them to know who has insurance and who does not? It falls on the family to prove to the school that they have adequate insurance.</p>

<p>Even if you have adequate insurance and are granted a waiver, you must do the process each year because people leave jobs and employers health insurance plans change year over year. Again, the school has no way of knowing unless the family informs them.</p>

<p>This is the policy my D’s school:</p>

<p>College requires all students who are classified as active in the College Student Information System , including students not taking classes or on a leave term, to have health insurance meeting specified standards of coverage. Eligible students are automatically enrolled in the Student Group Health Plan each academic year and the cost of the plan is billed to their tuition account. Students who have insurance coverage that meets the college’s insurance requirements may apply to waive the automatic enrollment into the SGHP by completing the on-line insurance waiver petition. </p>

<p>Undergraduates both freshmen and returning student: Will be mailed via postal mail to the permanent address listed in the school’s database.</p>

<p>While we always had adequate coverage for a waiver, for students who had to purchase the school health plan, the school would pay for one half the cost of the plan and provide the family with a loan from the school’s funds to pay for the other half. However, every school is not in a position to do this for its students (especially schools with less than flush endowments and/or public universities).</p>

11

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<p>You can’t have it both ways. If your son as a sophomore is eligible for 4500 in subsidized stafford loans and and another 2000 in unsubsidized loans. Did he exhaust all of this. If not, have him get an increased stafford loan if this is a hardship to your family. While no family is thrilled at the concept of debt, if it is a hardship for you to pay for the insurance and he is in a position to borrow the money for something that he is required to have, then borrow the money and get the coverage. It is not like he is taking out a loan for spring break.</p>

<p>Did your son work over the summer? Can he contribute some of his summer earnings to offset the cost of the insurance?</p>

12

<p>Schools do handle all of this differently. I don’t know when this health insurance requirement kicked in and whether all schools require it. I know that it is priced differently at different schools. It can hurt low income families, in particular, who have children covered under state insurance plans that do not meet the standard of the universities. I 've seen that happen a few times.</p>

<p>As for dorm rooms, it’s very nice that a college will give a financial aid student that requests the least expensive room, that price regardless of what room s/he gets. Not a policy all schools have. In fact, at some schools where the housing is limited, the room charges can get very pricey, and it is a take it or leave it thing, and they won’t budge on the price. Perhaps this is a policy that schools that guarantee to meet all need have.</p>

<p>My son has friends at NYU who got very high priced room/apt assignemnts this fall, and are deciding to commute instead, no small expense there either, given the cost of a monthly train and MTA pass that will be needed.</p>

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<p>I went and checked my students OLD bills…the cost of health insurance was included in the cost of attendance. One way WE were able to reduce our costs was to prove that we had comparable coverage and our kiddos were then able to do a waiver for this cost.</p>

<p>The college has a requirement for a certain LEVEL of coverage. If you cannot meet that with a family plan or individual plan, then really the college plan is a good option. It sounds like your students college plan is a good one. Some are not.</p>

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<p>Can my D pay her student medical insurance with her student loan money?</p>

<p>The student medical insurance is not on her school’s COA, but it is mandatory and our health insurance doesn’t cover out-of-network expenses.</p>

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<p>4kids, If she already has enough loan money to cover it, she should be able to.</p>

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<p>Scribbulus, Adding the health insurance to the COA would only qualify you for more loans. There are schools that will give grant money for health insurance but I think we’re really talking about the most generous schools in the country.</p>