Higher education is one of the biggest investments many people make. Tuition insurance can protect that investment by reimbursing some or all of the tuition, housing, and fees paid if a student must leave school early for a covered reason.
A college degree has become essential in many career fields. Three out of four newly created jobs require at least a bachelor's degree. That's why by 2022, there will be more than 20 million students enrolled in undergraduate and graduate degree programs in the United States.
Because higher education is no longer considered an optional stepping stone to a career, many students are jumping into programs without realizing the financial investment required to earn a degree.
Currently, the average cost of a four-year degree for an in-state student living on a public college campus is just over $104,000, assuming the student graduates on time. According to the 2022 College Confidence Index, 52% of families surveyed said they would have difficulty paying for an additional semester.
Next to purchasing a home, financing higher education is one of the largest investments most families make. Protecting this investment is important, so students and their families should take the time to learn what options exist to recoup their funds if the student must discontinue classes.
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Few students begin a degree program without a plan to finish, but that can change quickly.
According to the State of Higher Education report (Lumina Foundation/Gallup), more than 40% of students said they had considered dropping out of school last year, with more than half citing emotional stress as a reason for leaving school. Additionally, a study by the National Student Clearinghouse found that one in four first-year college students do not return to school for their second year.
Although leaving college before graduation is common for a variety of reasons, research shows that most students (74%) and parents (66%) are unfamiliar with their school's refund policy. You should be able to research this information on any school's website, but most will provide a partial refund of tuition if a student cancels within a few weeks of starting classes. And schools typically don't give anything back if a student leaves during the semester, regardless of the reason.
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GradGuard Co-Founder and CEO
“For many families, the potential loss of $10,000 or $20,000 or more can be a devastating loss, so it’s worth it for families to consider protecting their investment in higher education.”
If a student medically needs to withdraw from classes after the refund period has passed, tuition insurance can help them recoup some or all of their investment. Purchased before the first day of classes, this insurance can reimburse you for tuition, accommodation and expenses if you have to leave school due to injury, illness, mental health condition or other covered reasons.
“Tuition insurance can provide peace of mind for about 1 to 2 percent of what a family pays per semester,” said John Fees, co-founder and CEO of GradGuard, a tuition insurance provider.
GradGuard is the only company in the country that offers up to 100% reimbursement of tuition, housing, and fees for the period. Depending on the situation and the amount of coverage chosen, students and their families can save tens of thousands of dollars.
“Most schools do not refund tuition if a student leaves after a few weeks of starting school, and virtually none refund housing and fees,” Fees said. “For many families, the potential loss of $10,000 or $20,000 or more can be a devastating loss, so it’s worth it for families to consider protecting their investment in higher education.”
Registration is simple. If your school partners with GradGuard, it most often appears as an additional option you can choose when paying tuition online, similar to how you purchase travel insurance. Plans can be purchased annually or by term and are also available on the GradGuard website. GradGuard also offers renters insurance to protect student property and includes liability coverage.
College is well worth the investment as long as students graduate. Tuition insurance can help protect that investment. For more information and to get a quote, visit gradguard.com.