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Learn more about how much college could cost — and, how to afford it:
The total price tag:Cost of attendance
What’s in your budget:Find an affordable college choice
Funding options:Federal vs. private student loans
What you’ll pay after graduation:Calculate monthly student loan payments
Tuition insurance, which pays out if you need to leave school, can be worth the cost if your college does not have a sufficient refund or medical withdrawal policy.
As of the 2022-2023 academic year, the total cost of attendance ranged from $27,940 for four-year public schools to $57,560 for private non-profit universities, so withdrawing from school could cause substantial losses.
Schools typically have guidelines around who is eligible for a refund and under which circ*mstances, but those rules can be hard to find and are often ambiguous.
Some colleges allow students to withdraw for medical reasons and finish their coursework after they recover for no additional charge. Others are much less flexible. Before buying tuition insurance, verify your school’s refund and medical withdrawal policies.
Ask your school’s registrar’s office about its policies. If it doesn't have the information you’re looking for, ask a representative to direct you to the right office. If you’re uncomfortable with what you find, tuition insurance can provide peace of mind and a refund if you have to leave school.
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Tuition insurance costs can vary depending on school costs, but plans are often available for under $200 per semester. Some companies charge a flat fee, such as $140 per semester, or they may charge a percentage of the total cost of attendance; the typical cost is 1% to 2% of the semester's cost.
Read the details of any tuition insurance policy to make sure its coverage is adequate for you. Not all policies offer the same coverage levels.
Tuition insurance coverage
Tuition insurance reimburses you for lost college costs if you leave school for a qualified reason. It typically covers nonrefunded money for tuition, fees, room and board.
You can qualify for reimbursem*nt even if you used financial aid, including federal or private student loans, if you are still responsible for the loans' repayment. However, tuition insurance normally only reimburses you for your out-of-pocket expenses, so you cannot get reimbursed for grants or scholarships paid directly to the school.
Qualified reasons are normally health-related and can include unexpected injury and illness, ongoing or chronic illness, and mental health conditions. Previously, COVID-19 was not a covered condition, but companies like GradGuard have expanded their policies to include COVID.
You typically must buy tuition insurance prior to the first day of class. Some colleges also allow you to buy insurance as part of the tuition payment process, which makes it easy to use your student loans and other aid to cover the costs. Your school might even include tuition insurance as part of its cost of attendance.
Key terms in this story
Cost of attendance (COA) is yourestimated annual school cost, including tuition and fees, books and supplies, room and board, transportation and personal expenses. Colleges subtract your expected family contribution, or EFC, from their cost of attendance to calculate the maximum amount of need-based aid you can receive. Expected family contribution is the amount the federal government estimates your family can pay for college.
A student loan ismoney you borrow from the federal government or a private lender to help pay for college costs, like tuition, supplies, books and living expenses. Federal student loans typically have lower interest rates and more flexible repayment options than private loans. Borrowers should exhaust student loans from the federal government before applying with private lenders.
Tuition insurance isa means of providing protection from lost tuition, fees and room and board if you leave school for a qualified medical reason. You should consider buying tuition insurance only if your college does not have an adequate or flexible refund or medical withdrawal policy.
FAQs
Tuition insurance, which pays out if you need to leave school, can be worth the cost if your college does not have a sufficient refund or medical withdrawal policy.
Why is tuition insurance important? ›
Tuition insurance provides financial reimbursem*nt for private and boarding school tuition and possibly other related expenses if a student has to withdraw from school. Given the rising cost of education, tuition insurance can provide peace of mind when making this financial commitment.
Is GradGuard tuition insurance worth it? ›
Is GradGuard Worth It? GradGuard, like any tuition insurance, can be worth it if you're concerned about losing money if your child has to withdraw from school. GradGuard covers costs if the withdrawal is related to serious illness or injury, mental health conditions or chronic illness.
What does tuition mean in insurance? ›
Tuition Insurance provides reimbursem*nt when a college student is unable to complete an academic term due to an unforeseen, covered accident, injury or other covered reason.
What is tuition protection service? ›
The Tuition Protection Service (TPS) may assist students to either continue their studies through another course or different provider, or by being provided a refund or loan re-credit for education and training they paid for but did not receive.
Is education insurance good? ›
You must buy a child education insurance plan right away – it helps you in monetary terms, and keeps your children's dreams on track for success. Why you should buy a child education insurance plan: High Cost of Education: You already know how expensive it is to live and educate yourself.
Why do companies reimburse tuition? ›
As with most employee benefits, tuition reimbursem*nt programs are designed to reduce turnover and attract additional qualified candidates to the organization.
What is the best tuition insurance company? ›
GradGuard. GradGuard is our top pick for tuition insurance, and it's easy to see why. GradGuard is designed specifically to help college students and their parents to protect their investment in a college education, offering coverage at hundreds of colleges and universities nationwide.
Is tuition reimbursem*nt worth it? ›
You can expect a career boost. Using your job's tuition reimbursem*nt benefit can set you up for a new, higher-paying opportunity. People with professional or doctoral degrees can earn a median of nearly $600 a week more than the average for workers with a bachelor's degree.
How much does the average college student spend on insurance? ›
The average annual cost of a public university student health insurance plan is $2,924, while a private school health plan averaged $3,874 annually for undergraduates in the 2023-24 plan year, according to Beckley.
Qualified tuition and fees are no longer tax deductible after 2020. The Tuition and Fees deduction was an adjustment to income if you incurred qualified education expenses for you, your spouse, or your dependent.
What does full cost of tuition mean? ›
Given all that, “full tuition” means the total amount of tuition that a given student is obligated to pay. It does NOT include fees that the student might also have to pay.
What are examples of tuition? ›
You can use tuition to refer to the amount of money that you have to pay for being taught in a university, college, or private school. Angela's $7,000 tuition at university this year will be paid for with scholarships. If you are given tuition in a particular subject, you are taught about that subject.
Does tuition assistance cover student loans? ›
Employers that offer educational assistance programs can also use those programs to help pay their employees' student loans.
What is tuition guarantee? ›
This means, the tuition you pay for your first year will be the same price you pay for your fourth year. No surprises.
Why is insurance education important? ›
By clearly demonstrating what insurance coverage does and does not cover, policyholders are empowered to better understand their individual policies and, in the event of a claim, confidently navigate the necessary steps to recover from a loss.
Why is it important to know the cost of tuition? ›
Why is the cost of attendance important? The cost of attendance is the maximum amount you would pay for one year of college before financial aid is applied. Understanding the cost of attendance can help you put your financial aid into perspective and prepare for out-of-pocket costs.
What is the importance of affordable tuition? ›
Making college affordable for more students can potentially increase access and lower barriers to completion, which could help close the projected degree gap by 2030, and at the same time promote more equitable access to and success in college.
Why is it important to have insurance? ›
Insurance is your financial plan's safety net – having the right insurance at the right amount protects you and your family from unforeseen events and provides a baseline financial cushion.
