Should You Buy College Insurance?
When students return to school, many are preparing to close the campus. Some schools, such as the University of North Carolina Chapel Hill and Michigan State University , have already moved their fall classes online. These changes made students think about how to get their money back – and it turns out that getting a refund can be tricky .
Unfortunately, there is no uniform tuition refund policy across the country, as reported by Marketplace . Some colleges may have strict non-refund policies, while others may offer partial refunds or future tuition vouchers.
CNBC says tuition fee refunds may be offered on a sliding scale with no refund option after the fifth week of the semester. This can be especially troubling as the average college tuition currently ranges from $ 21,950 to $ 49,870 per year , according to the College Board.
However, there may be another option: tuition insurance. Tuition insurance usually covers one semester, as Forbes reports , although you may be able to buy more. While these rules may cover your tuition, fees, room and board, you may not have the full coverage you expect.
One company, GradGuard, has partnerships with over 300 colleges and universities. According to the web site of the company, the insurer GradGuard, Allianz Global Assistance, will cover the claim if you get sick COVID-19 and completely give up the occupation. CNBC reports that premiums can start at $ 39.95 for $ 2,500 of insurance coverage per semester. The average student can pay $ 106 for $ 10,000 insurance.
Another company, AWG Dewar, has partnered with schools across the country to offer tuition insurance, but specific policy details may vary from institution to institution. For example, Santa Clara University in California offers insurance only to 80% of tuition fees – if you completely give up training because of a virus – for $ 70 per quarter.
The website specifically states that you will not have insurance if you decide to quarantine and exit the program because you suspect you may have the virus but have not received a diagnosis. “It is important to note that the Tuition Fee Reimbursement Plan does not provide coverage for fear of contamination,” the policy says.
Before paying for your tuition insurance, you should clearly state your school’s refund policy. You should also read the details of the insurance policy – along with any fine print. You must know exactly what types of college dropouts are allowed by the policy and what costs (tuition, room and board, fees, etc.) the plan will cover.
You should also ask about the grievance review process. Will the insurer pay the school directly or can you expect to receive a refund check? If you have contracted the virus and need to file a claim, you will be grateful to know these details in advance.