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Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: Michael Hanson/Getty Images June 08, 2022 Hanneh Bareham specializes in everything related to student loans and helping you finance your next educational endeavor. She aims to help others reach their collegiate and financial goals through making student loans easier to understand. Chelsea has been with Bankrate since early 2020. She is invested in helping students navigate the high costs of college and breaking down the complexities of student loans. Bankrate logo The Bankrate promise
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Tuition insurance is a type of coverage that refunds students a portion of their education expenses if they have to drop out due to injury or illness. Tuition insurance can save you thousands of dollars in tuition and related expenses in the event of an emergency, but it’s not always necessary. Many colleges offer their own leave policies that serve a similar purpose, so it’s important to research all of your options before signing up. What is college tuition insurance
College tuition insurance, also known as tuition refund insurance, covers tuition and qualifying expenses in the case of an emergency situation that results in an unexpected withdrawal during an academic semester. While every policy will have different regulations, the illness, accident or emergency generally must be considered debilitating and render the student unable to continue with their studies. In some cases, chronic or preexisting conditions may be eligible for coverage in addition to unforeseen illness and injury. What tuition insurance covers
The specifics of tuition insurance coverage varies by the provider and your school. However, most providers cover tuition, room and board and fees after: A death in the family. A life-altering illness or injury. A chronic illness, disability or injury. A debilitating mental health condition or illness. In the wake of the COVID-19 pandemic, providers are also starting to offer pandemic or epidemic coverage. GradGuard, a prominent tuition insurance company, includes COVID-19 coverage on all plans purchased on or after Feb. 18, 2022. How much tuition insurance costs
On average, tuition insurance costs roughly 1 percent of your total tuition costs, according to the . However, the amount of coverage is flexible. Depending on the policy, some providers may allow you to cover a portion of your tuition, although most cover the costs per academic semester and require you to renew your coverage each semester. When is college tuition insurance worth it
It’s not uncommon for students to withdraw from college for a semester or longer due to health challenges. Because of this, many schools have safeguards in place that allow students to do so without an additional charge, at least for the first few weeks of school. If your school has clear refund policies for withdrawals, tuition insurance ultimately may not make sense. The biggest risk is withdrawing near the end of the semester, when schools may be more reluctant to offer even partial refunds. College tuition insurance may be worth it if your school doesn’t offer a medical withdrawal refund or if it doesn’t cover your anticipated needs. For instance, if you have a preexisting mental health condition and your school does not cover it in its refund policy, you may consider tuition insurance. If you can’t find the information you need or if the details are murky, contact the office of financial aid or the registrar’s office for more information. Tuition insurance can save you thousands of dollars in the event that you withdraw, but it’s only worth it after you’ve done the proper research on your school’s policy and the cost of insurance; otherwise, you’re wasting money on coverage that you’re given for free by your school. SHARE: Hanneh Bareham specializes in everything related to student loans and helping you finance your next educational endeavor. She aims to help others reach their collegiate and financial goals through making student loans easier to understand. Chelsea has been with Bankrate since early 2020. She is invested in helping students navigate the high costs of college and breaking down the complexities of student loans. Related Articles