What is Tuition Insurance & Should I Get It?

As expensive as it is, a good college education can open up many doors for you. Unfortunately, there are situations in which college students must withdraw, whether due to medical reasons or other emergencies. When something like that happens, there is a chance you will not get a refund for the amount you paid the institution.

It’s necessary to have a solid financial plan to recover the money so you can invest it in your education whenever your situation allows. This is where tuition insurance can come in handy.

What is Tuition Insurance?

Tuition insurance is coverage that reimburses you if you must withdraw from college, providing you with financial relief in case your institution does not have an adequate refund policy. It is not necessary for your college to not have a refund policy for you to get tuition insurance. Typically, institutions have certain guidelines for withdrawing students to qualify for refunds. Unfortunately, these regulations are too vague and difficult to determine.

There are colleges allowing students to withdraw for medical emergencies, allowing them to wrap their program up when they are better and without additional costs. Many others do not offer that flexibility.

What Does Tuition Insurance Cover? Is it Worth it?

Tuition insurance pays out if you leave school for a qualifying reason. These policies typically reimburse you for college expenses you lost and cannot recover. They usually pay out to cover any money a college does not refund for a student’s tuition, fees, room, and board. The policy can kick in mostly due to health-related issues, and you can purchase one as late as the first day of college. Several colleges even offer tuition insurance as part of their payment process, making it easier for you to use other financial aid to cover the expenses.

Anybody who stands to lose plenty of money for dropping out of college should consider purchasing tuition insurance as part of their financial aid planning for college because it can be worth it. If you believe your health conditions might keep you from completing your coursework in any given semester, you should consider consulting financial experts for guidance on whether to purchase a policy suitable to your situation.

Do You Need Expert Advice on Whether to Get Tuition Insurance?

Many college students withdraw for a semester or longer, whether due to health challenges or other emergencies. Plenty of colleges offer clear refund policies. If your college offers easy withdrawals, you might not need to purchase tuition insurance. However, there is always a risk of schools being reluctant to offer refunds, especially if you need to withdraw from college at a semester’s end. Provided your college doesn’t offer medical withdrawal refunds, it might be better for you to invest in tuition insurance.

If you’re unsure how to proceed, consult the financial experts at College Funding of Tampa Bay. Our advisors are here to help you make a sound financial plan to pursue your education with a clear path to becoming debt-free. Call (813) 755-6834 or reach out here today to schedule a free consultation.