If the COVID-19 pandemic has taught us anything, it is the importance of being prepared for the unexpected. With campuses closing to prevent the spread of the virus and family emergencies calling for students to travel home, it is more important than ever to protect the investments you make in your education.
But even in a pre-pandemic world, having Tuition Insurance was beneficial and the need to be covered continues to rise in our current world.
Tuition Insurance protects a student’s investment by providing reimbursement for tuition insurance, on-campus housing, and other academic fees when a withdrawal from school is necessary due to a medical conditioner death. A medical condition typically includes:
- An injury or illness
- Mental health condition
- Substance abuse
Some tuition insurance policies may also provide reimbursement due to non-medical issues that prevent completion of an academic term, such as:
- Death of a loved one
- Travel related crisis or relocation
- Natural disasters, outbreaks, epidemics, and pandemics
- Expulsion and/or withdrawal
In some cases, institutions may issue tuition refunds directly to students, but there may be limitations regarding who is eligible based on circumstances.
Facts and Figures
According to the National Center for Education Statistics, the cost for undergraduate tuition during the 2017-18 academic school year was $17,797 at public institutions and $46,014 at private nonprofit institutions. Due to these high costs, students who need to drop out are left with a huge financial burden.
Although only 1% of students (roughly 80,000 lives per year) withdrawal from school due to medical reasons, consider that 80% of schools do not even offer tuition insurance to their students and families.
As more institutions come to realize the importance of tuition insurance and begin making the product available to their students, these numbers will increase and students will ultimately be put into a better financial situation to complete their education and give them peace of mind for their future.