PHOENIX, Aug. 4, 2020 /PRNewswire/ — Nationwide, college families are evaluating the daily updates for how schools will protect their students from Coronavirus and also preparing to pay their final tuition bill before arriving on campus. Among the many questions that families of college bound students are smart to ask is – What will happen to my tuition payment if my child must withdraw from college?
For many families, college is one of the largest investments they will ever make. As a result, it’s a smart move for anyone paying tuition to understand their school’s refund policy and to consider protecting their investment with tuition insurance.
«The thousands of dollars students and families are paying for college tuition, housing and academic fees are often at risk,» said John Fees, the co-founder of GradGuard, a national provider of modern student insurance programs to more than 350 colleges and universities.
Only 6% of schools surveyed in 2019 provided 100% refunds for tuition and virtually none provide refunds for academic fees or housing.
Many universities may refund a portion of tuition through the first few weeks of school, but most schools will not provide a refund after the fifth week of classes. Academic fees, deposits and housing are usually not eligible for a refund.
The coronavirus pandemic has brought important attention to the risk of investing in college and particularly, how schools manage refunds.
The risk can often surprise college parents. Less than a quarter of parents surveyed in a 2019 College Parents of America report indicated that their student’s college refund policy was disclosed to them during the enrollment process.
Families are often unaware that their college student may be vulnerable to the stress of college life. The National College Health Assessment produced by the American College Health Association demonstrates the frequency of incidents such as illnesses, accidents, and injuries that can require a student to complete a medical withdrawal. This data also reveals a growth in chronic illnesses and rapid growth in serious mental health incidents during the past five years.
It’s important for families to note that student health incidents force thousands of students to withdraw from classes each year, without the ability to recover the thousands of dollars paid for classes, fees and housing.
The Top Three Reasons GradGuard’s Tuition Insurance Is A Smart Decision:
- If the school does not provide a 100% refund – Ask your school about their refund policy.
- If the student has more than $1,000 of academic expenses – Even if the school provides a 100% refund for tuition, most do not refund academic fees or student housing costs.
- If the student or family is taking out a student loan – Student and parent loans must be repaid even if a student must take a medical withdrawal. Tuition insurance can be used to repay the balance of these loans.
«With so much money at stake, it is vital that families develop a plan in case their student has to withdraw from school due to a serious illness or injury,» said Fees. «No matter where a student attends college, families deserve the opportunity to protect their investment in higher education and nearly all students will benefit from securing a minimum level of coverage. Just remember tuition insurance must be purchased before school starts.»
Despite the stress and changes caused by Coronavirus to higher education, the good news is that college families can protect both their student and their investment by purchasing GradGuard’s tuition insurance, with rates as low as 39.95 for $2,500 of tuition insurance coverage.
About GradGuard: GradGuard is a technology-enabled pioneer in developing innovative protections designed to reduce the financial risks of college life. Since 2009, GradGuard is trusted by more than 350 colleges and universities and since its founding has protected more than 700,000 students and families. Visit GradGuard.com to use its college insurance search tool to find the insurance programs that are right for your college student or recommended by their college or university.
View original content to download multimedia:http://www.prnewswire.com/news-releases/what-would-happen-if-your-college-student-unexpectedly-needs-to-withdraw-from-school-301105712.html