Do You Need Tuition Insurance?

By Danielle Wirsansky on December 23, 2016

Life is full of unexpected events. You have probably heard the common idiom “expect the unexpected.” Usually when unexpected things happen, we have to take a step back from what we are doing and the way our lives have been going. We have to stop and find a compromise and just deal with the situation before returning back to the status quo. And as much as we like to think that we are true adults once we enter college, the reality is that college and the workplace are very different.

When you are a working adult, if something big and life changing occurs you can take time off and, barring that, even quit your job and get a new one when the situation is resolved. But when you are a student and something unexpected occurs, you do not really have the option to miss school. You can maybe miss a couple of days here and there, but otherwise you have to withdraw from the semester. You can’t just stop and start your schooling, and withdrawing means losing the credits you have been working towards. You can’t just pick them up and return, and all the work that you did that semester was for naught.

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Sometimes, more important than losing credits, is losing the money you paid towards tuition for a semester that you are unable to finish. Being unable to get a refund can be detrimental for some students, enough of a blow that they cannot afford to return to school even when whatever crisis they have been dealing with is over. Losing a semester’s worth of tuition can be a lot of money and is certainly nothing to overlook.

So if you are a student who is concerned that something might occur in the future, right smack in the middle of a semester, how can you protect yourself and your finances? How can you make sure that your absence from school causes as little monetary drain as possible? How can you avert disaster? The answer might be getting tuition insurance.

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First, you probably need to know what tuition insurance is. According to Wikipedia, “Tuition insurance is an insurance protecting students attending cost-intensive educational institutions — schools, colleges or universities — from the financial loss that may result from the student’s involuntary withdrawal from his or her studies.”

If there is any risk or chance that a student might have to withdraw from school in the middle of the semester, it is probably a good idea to get tuition insurance. But even if you do not have any inkling of any disasters looming on the horizon, it is always better to be safe than sorry and we already reviewed expecting the unexpected. Getting tuition insurance can be a great way to safeguard your funds, especially if your funds are precious to you.

There are many options to choose from when selecting tuition insurance and you should always review the different options before making your choice. Some do not cover every withdrawal — the reason a student withdraws for has to be a listed option in order for you to get your money back and that is also a good thing to review before making any decisions about getting insurance.

Here are a few great options to check out to see if, and which, tuition insurance company and plan might be the best fit for you:

GradGuard

GradGuard gives your family financial security, protecting against the unexpected. Tuition insurance complements your school’s tuition refund policy in the event you need to withdraw for a covered reason.

Allianz Global Assistance

Do you need to leave school before the end of your term for a covered reason? Allianz tuition insurance gives reimbursement for non-refundable tuition expenses.

Dewar

Dewar offers a Tuition Refund Plan, a unique form of insurance originated by Dewar.

According to the Dewar website, this plan helps “provide families the opportunity to protect their tuition investment in independent schools and colleges.”

When students withdraw from school for covered reasons, this program refunds a portion of the unused annual tuition and insured fees. The schools also benefit, as the plan helps ensure receipt of the school’s budgeted tuition income.

Education Insurance Plans

According to the Educational Insurance Plans website, “your tuition contract obligates parents for full or partial tuition costs whether the student completes a full term or not.”

Tuition paid in advance can be refunded or unpaid tuition obligation can be canceled, resulting in a loss of planned revenue for your school. However, sometimes you have to withdraw from school due to family hardship or financial burden. The Protect My Tuition Plan program protects your school’s revenue while eliminating your financial burden due to withdrawal. This plan provides comprehensive coverage for any event causing your withdrawal or dismissal.

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